BlockchainBeginner#DeFi#Trading
DEX (Decentralized Exchange)
D
Definition
A P2P marketplace where users can trade cryptocurrencies directly without a central intermediary taking custody of funds.
Verified by CryptoLV Alpha
Concept Diagram
Key Takeaways
1
DEXs allow peer-to-peer token swaps without surrendering custody to a central intermediary
2
No KYC required - all you need is a wallet and some gas to start trading
3
New assets often appear on DEXs weeks before centralized exchanges listing them
4
Evolution from simple AMMs like Uniswap to on-chain orderbooks like Hyperliquid
Practical Example
On Uniswap you swap 1,000 USDC for ETH directly from your Metamask wallet - no account creation, no KYC, no custodian, just a 0.3% fee going to liquidity providers.
Finished learning?
Related Terms
Blockchain
AMM (Automated Market Maker)A type of decentralized exchange protocol that relies on mathematical formulas to price assets rather than a traditional order book.
Blockchain
Hyperliquid L1A specialized app-chain designed for high-performance perpetual trading with sub-second finality and native orderbooks.
Blockchain
CEX (Centralized Exchange)A platform managed by a central entity (e.g., Binance) that facilitates the buying and selling of digital assets.
Blockchain
Liquidity PoolA collection of funds locked in a smart contract used to facilitate trading by providing liquidity on decentralized exchanges.
Related Deep Dives
Master the hub of Blockchain
Explore all our strategic guides about Blockchain to take your operations to the next level.
View all articles