Decentralized Exchange
Also known as DEX DEXs DEXes decentralised exchange
A decentralised exchange, or DEX, lets users trade crypto assets directly from their own wallets through smart contracts, without handing custody to a company. Many DEXs use automated market makers, where trades are priced against pools of tokens supplied by liquidity providers, while others use on-chain order books. DEXs are open to anyone, but users are exposed to contract risk, price slippage and scam tokens listed without vetting.
Related terms
- Automated Market Maker A DEX design that prices trades with a formula and token pools. DeFi
- Liquidity Pool Tokens pooled in a contract to enable trading or lending. DeFi
- Slippage The gap between expected and actual execution price. Trading & Markets
- Maximal Extractable Value Profit captured by reordering or inserting pending transactions. DeFi
- Liquid Staking Staking while receiving a tradable token for the staked deposit. DeFi
- Collateral Assets pledged to secure a loan or position. DeFi