DEX (Decentralized Exchange)
DeFi
Exchange using smart contracts and pools or order books.
A decentralized exchange enables peer‑to‑pool or peer‑to‑peer trading without custodians. Implementations include AMMs with liquidity pools and order‑book DEXes with on‑chain matching.
Frequently asked questions
What’s the difference between AMM and order book DEXs?
AMMs use liquidity pools and pricing curves; order books match bids/asks. AMMs excel for long‑tail assets; order books can offer tighter spreads for liquid pairs.Why does slippage happen on DEXs?
Trades move the price along the curve and depend on pool depth. Large trades vs. shallow liquidity increase slippage.How do aggregators help?
They route orders across multiple DEXs/pools to improve price and reduce slippage and MEV exposure.