Introduction to Decentralized Exchanges (DEX)
DEX Allows users to trade assets directly through their own cryptocurrency wallets, with settlement handled by smart contracts on the blockchain. It emphasizes self-custody, but also requires users to assume responsibility for key security, network fees, price slippage, and contract risks.
DEX Basic concepts of decentralized exchanges
A decentralized exchange (DEX) is a trading marketplace that does not rely on a centralized institution to custody assets. Users operate through their own cryptocurrency wallets while retaining continuous control of their private keys and assets. Trades are typically settled automatically by smart contracts on the blockchain, an important feature that distinguishes them from centralized exchanges.
DEX How to complete a trade
Most decentralized exchanges DEX use the automated market maker (AMM) model, relying on liquidity pools composed of tokens deposited by users to provide swaps. Algorithms dynamically set prices based on the proportions of assets in the pool. Other decentralized exchanges DEX use on-chain order books to record buy and sell orders; the two models involve different trade-offs in terms of speed, fees, and liquidity.
What to consider when using one
DEX Decentralized exchanges are an important part of the decentralized finance (DeFi) ecosystem, but self-custody also means that users must protect their keys themselves. If a wallet becomes inaccessible, the funds may be unavailable. Before using one, users should also consider network fees, price slippage, and the risks that may be posed by unaudited smart contracts.
Original Tutorial
https://www.binance.com/zh-CN/academy/glossary/decentralized-exchange
Mark it complete when you understand it.
Opening a lesson does not complete it automatically. You can change its status at any time.