DeFi Intel

What is DEX?

Plain-English explainer · Updated 2026-05-03 · By DeFi Intel

A decentralized exchange settles trades on-chain via smart contracts. Users keep custody of funds. AMM-based DEXs (Uniswap, Curve, Balancer, Aerodrome) dominate spot; CLOB-based DEXs (dYdX, Hyperliquid, Vertex) dominate perps.

How it works

A decentralized exchange settles trades on-chain via smart contracts. Users keep custody of funds. AMM-based DEXs (Uniswap, Curve, Balancer, Aerodrome) dominate spot; CLOB-based DEXs (dYdX, Hyperliquid, Vertex) dominate perps.

For deeper protocol-level mechanics, see the related glossary terms below or the linked DeFi Intel topic deep-dive.

Why it matters

DEXs let users trade without custody risk. They have grown to ~25% of total spot crypto volume and >50% in some L2 ecosystems.

Real-world examples

Uniswap, Curve, Balancer, Aerodrome, PancakeSwap, Jupiter (Solana), Hyperliquid (perps), GMX (perps).

Related terms

Go deeper

Read the full DeFi Intel topic deep-dive or browse the complete crypto glossary.

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