DEX (Decentralized Exchange) Guides, Reviews & How‑tos

When working with DEX, a peer‑to‑peer platform that lets users trade cryptocurrencies without a central intermediary. Also known as Decentralized Exchange, it enables anyone with a wallet to swap tokens directly on‑chain.

One of the core engines behind most DEXs is the Automated Market Maker, a set of smart contracts that price assets using mathematical formulas instead of order books. The AMM influences how quickly a trade executes and how fees are distributed, which makes it a must‑know tool for anyone using a DEX. It essentially replaces human market makers, so you don’t need to wait for a buyer or seller to appear.

To feed an AMM you need a Liquidity Pool, a reserve of two or more tokens that traders draw from when swapping. The pool’s size, fee tier and token composition define the price impact you’ll see. Every time you add or remove assets you face impermanent loss, the temporary value dip that occurs when the pool’s token ratio diverges from market prices. Understanding this risk lets you decide whether the fee earnings outweigh the possible loss.

Because DEXs run on‑chain, a token swap happens in seconds and records itself on the blockchain. Swaps are transparent, permission‑less and usually cheaper than traditional exchanges, but you still need to watch gas costs and slippage. Our collection below covers the constant product formula that powers Uniswap, strategies to reduce impermanent loss, and how under‑collateralized loans interact with DEX liquidity.

Why DEX matter for DeFi

DeFi builds on DEXs to create lending platforms, yield farms, and synthetic assets. If you can swap tokens without a middleman, you can also lock them as collateral, earn interest, or mint new derivatives. That’s why every DeFi enthusiast should grasp the mechanics of AMMs, liquidity provision and swap economics.

Below you’ll find practical guides, deep‑dive reviews and step‑by‑step tutorials that cut through the jargon. Whether you’re just setting up a wallet or looking to fine‑tune a multi‑pool strategy, the articles here give you the facts you need to ape smarter and avoid costly mistakes.