A decentralized exchange or DEX is an exchange that leverages blockchain technology and smart contracts to allow traders and investors to buy and sell cryptocurrencies peer-to-peer.
DEXs are different from traditional centralized exchanges (or CEXs) because they do not require the use of intermediaries or order books to match and process trade orders between a buyer and a seller.
Instead, DEXs rely on blockchain technology, in addition to a combination of smart contracts, price oracles, liquidity pools and automated market maker programs to enable buyers and sellers to exchange crypto in an open and permissionless manner while maintaining efficient price discovery.
These are the 4 key components of a decentralized exchange:
Through the Dapp browser, you can access a variety of DEX trading protocols such as Uniswap, Sushiswap, Curve, Balancer and others.