DEX (Decentralized Exchange)

A decentralized exchange (DEX) enables token trading through smart contracts without requiring users to deposit funds with a centralized operator. On Ethereum, most DEXs rely on AMMs and liquidity pools, allowing permissionless listing and always-on markets. DEXs support self-custody and censorship resistance, which are core web3 values, but they also involve complexities: users must manage approvals, slippage, and transaction fees, and they may face MEV risks like sandwich attacks. DEXs have become central to DeFi because they provide on-chain price discovery and liquidity for stablecoins, governance tokens, and tokenized assets. For institutional and TradFi narratives, DEX activity can signal real demand for Ethereum blockspace and settlement, though institutions often require compliance layers for participation. SEO and long-tail searches often revolve around “lowest fee DEX,” “Ethereum swap fees,” and “DEX vs CEX,” reflecting the tradeoffs between decentralized and centralized markets. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary

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