Decentralized Exchange
A decentralized exchange (DEX) is a peer-to-peer cryptocurrency exchange platform that operates without a central authority, allowing users to trade digital assets directly from their wallets using smart contracts and automated market makers. It eliminates the need for intermediaries like traditional exchanges, providing greater control, privacy, and security over funds. DEXs are a core component of decentralized finance (DeFi), enabling trustless and permissionless trading on blockchain networks.
Developers should learn about DEXs when building or integrating with DeFi applications, as they offer censorship-resistant trading, reduce counterparty risk, and align with blockchain's decentralization principles. Use cases include creating liquidity pools, implementing token swaps, developing yield farming protocols, and enabling cross-chain trading in projects focused on financial autonomy and innovation.