What Is Decentralised exchange?

Decentralised exchange (DEX) is an asset trading exchange where all trades happen purely on-chain.

These exchanges are public, fair, cheap and especially censorship proof. There is no middleman like a broker when you are trading on these venues, but you get equal access to the trade flow. Users trade using their non-custodial wallets performing swaps.

A decentralised exchange is an opposite of CEX. Decentralised exchanges are always smart contract based.

Decentralised exchanges can be based on different models:

Some of the most popular decentralised exchanges are Uniswap, Sushiwap and PancakeSwap.

See also