Decentralized Exchange (DEX)
A DEX is a set of smart contracts that lets users trade directly from their own wallets without a custodian.
In depth
Most DEXs use liquidity pools instead of order books: you swap against a pool of two tokens and the price adjusts by formula. There is no account or KYC and you never hand over custody, but you pay network gas, face slippage on large orders and bear smart-contract risk. Uniswap is the best-known example.
Why it matters
DEXs are the main alternative to exchanges like StableX — understanding both lets you pick the right tool.