DEX (Decentralized Exchange)

A Decentralized Exchange (DEX) is a peer-to-peer marketplace built on a blockchain that facilitates the direct trading of cryptocurrencies and digital assets without the need for a centralized intermediary, such as a bank or a traditional exchange, thereby allowing users to maintain full custody of their funds. These non-custodial platforms operate through self-executing smart contracts, primarily utilizing Automated Market Makers (AMMs) to determine asset prices and execute swaps against liquidity pools rather than relying on a traditional order book.