DEX

A DEX (decentralised exchange) is a smart contract that lets you swap tokens directly from your wallet, without an intermediary holding your funds. Unlike a CEX (see cryptocurrency exchange), there's no account, no KYC, no custodial risk — the contract either executes the trade or reverts. Most DEXes use the AMM model: instead of matching buyers against sellers in an order book, you trade against a liquidity pool priced by a formula. Uniswap is the archetype; PancakeSwap, Curve, Balancer are variants for different chains or asset types. A few (dYdX, Hyperliquid) still run proper order books for derivatives. The trade: worse UX and higher slippage on big trades than a CEX, but you keep custody and nobody can freeze you.