A decentralised exchange (DEX) allows users to trade cryptocurrencies directly from their wallets using smart contracts, with no central intermediary and without giving up custody of funds. Automated Market Makers replaced traditional order books with liquidity pools.
2017
EtherDelta launches — first functional DEX but difficult to use
2018
Uniswap v1 introduces AMM model — game-changing simplicity
2020
DEX volumes explode during DeFi Summer
2022
DEX volumes surge as FTX collapse drives users away from centralised exchanges
Non-custodial token trading, liquidity provision, DeFi access
💡 Did You Know
On peak days in 2021, DEX volumes exceeded $10 billion — rivalling some of the largest centralised exchanges
⚠ Controversies & Red Flags
DEXs are vulnerable to frontrunning bots (MEV — Maximal Extractable Value) that can systematically profit at the expense of ordinary traders.