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Home/Glossary/Decentralized exchange (DEX)
Basics

Decentralized exchange (DEX)

Also called: DEX

In shortA trading platform run by smart contracts, where you swap tokens straight from your own wallet.

A DEX has no account, no sign-up and no company holding your money: you connect a wallet, approve a token and swap. Most DEXs use an automated market maker and liquidity pools instead of an order book; some (perp DEXs) offer leveraged trading.

You keep custody, but you also carry the risks: smart-contract bugs, slippage, fake tokens and MEV.

Read more on Cryptensive

  • Decentralized exchanges compared
  • Uniswap review
← DAO (decentralized autonomous organization)All terms A–ZDeFi (decentralized finance) →

Related terms

  • Automated market maker (AMM)A type of DEX that prices trades with a formula based on the tokens in a liquidity pool, instead of an order book.
  • Liquidity poolA pot of tokens locked in a smart contract that traders swap against on a DEX.
  • Centralized exchange (CEX)A company that runs a crypto trading platform and holds customers' funds, like Binance, Coinbase or Kraken.
  • SlippageThe difference between the price you expect and the price you actually get.
  • Perp DEXA decentralized exchange for trading perpetual futures from your own wallet.
  • DEX aggregatorA service that splits your swap across many DEXs to find the best price.
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