Decentralized exchanges (DEXs) operate on blockchain technology, allowing users to trade cryptocurrencies directly without intermediaries. They utilize smart contracts to facilitate transactions, ensuring security and transparency. Users retain control of their funds, and liquidity is often provided by other users through automated market-making protocols. How do these mechanisms function in practice?

How do decentralized exchanges (DEXs) work?

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How do decentralized exchanges (DEXs) work?

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