Article

Decentralized Exchange

August 22, 2026 · Aditya Gupta

Crypto & Blockchain

A Decentralized Exchange (DEX) is a non-custodial crypto trading platform running on smart contracts — users trade directly from their wallets without surrendering custody. Major DEXs: Uniswap (Ethereum), PancakeSwap (BSC), Curve (stablecoins), GMX (perpetuals). Most use Automated Market Maker (AMM) models with liquidity pools rather than order books. Liquidity providers earn fees from trades. Pros: self-custody, censorship-resistant, no KYC for many, 24/7 access, anyone can list tokens. Cons: gas fees on Ethereum, impermanent loss for LPs, slippage on large trades, smart contract risk, easier for scams. DEXs handle 10-20% of total crypto trading volume.

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