LeoGlossary: Decentralized Exchange (DEX)

5 mo (edited)
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A peer-to-peer (P2P) exchange that allows users to trade cryptocurrency without the use of an intermediary.

DEX theoretically offer anonymity to users. At the same time, transactions are non-custodial since there is no intermediary.

Instead of building a company, which owns the exchange, DEX are designed around a protocol. The most famous, and popular, is Uniswap. This is the largest DEX by volume and was also forked a number of times.

DEX also get around the KYC (Know-Your-Customer) regulations. Since there is no company actually operating the exchange, there is nobody to ensure compliance.

This is all seen as vital to Decentralized Finance (DeFi).

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