What are DEXes
Decentralized Exchanges (DEX) are DeFi applications that allow users to trade cryptocurrencies peer-to-peer without an intermediary using Ethereum smart contracts.
DEXs are non-custodial, provide greater access to tokens, are secure, require no signups and eliminate counterparty risk. However, scalability, gas fees and on/off ramps for assets remain a problem. There are three main types of DEXs: order books, automatic market makers and request for quote.
This section will cover the most popular type of DEX called an Automated Market Maker and the Request For Quote Model, which has its distinct advantages. In addition, each has its distinct advantages and disadvantages.