Decentralized Exchange (DEX)

A DEX, or Decentralized Exchange, is a platform or protocol used to exchange digital cryptocurrencies based on blockchain smart contracts. This is in contrast to a traditional centralized exchange such as the NASDAQ or NYSE. There are significant technical and regulatory differences between centralized exchanges and decentralized exchanges. The most popular highest trading volume DEX is Uniswap which was deployed to the Ethereum network in November 2018. The two most common mechanisms for DEX liquidity are AMM and book matching.