Decentralized Exchange (DEX)

An exchange that lives on a blockchain where users can swap and trade cryptocurrencies in a permissionless, KYC-free fashion. DEXs are not run by companies but rather code. When a user makes a trade on a DEX, their buy/sell order is not matched with another person's buy/sell order but rather, the user'sfunds are handled by smart contracts and filled based on the amount of liquidity in that specific liquidity pool.