DEX (decentralised exchange)

A decentralised exchange is a smart-contract protocol that lets you swap tokens directly from your own wallet, without depositing funds with a company. Uniswap on Ethereum is the best-known example. Others run on Solana, BNB Chain and layer-2 networks.

Most DEXs use automated market makers: pools of tokens supplied by users, with prices set by a formula instead of an order book. Some newer designs use on-chain order books or aggregate quotes from many sources.

Benefits include self-custody, no sign-up and access to newly launched tokens. Drawbacks include network fees, slippage on thin pools, front-running by bots, and a higher risk of buying scam tokens, since anyone can list anything. Always verify the token's contract address from an official source.