DEX (Decentralised Exchange)
Quick Answer
A DEX is a peer-to-peer marketplace for trading crypto directly from wallets without depositing funds with a centralised intermediary.
Full Definition
A decentralised exchange is a peer-to-peer marketplace that allows users to trade cryptocurrencies directly from their wallets without depositing funds with a centralised intermediary. DEXs use automated market makers (AMMs) or order books powered by smart contracts. In crypto payment processing, DEX aggregators are used to convert received tokens into the merchant's preferred settlement currency at the best available rate across multiple liquidity sources.
Related Terms
DAO (Decentralised Autonomous Organisation)
A DAO is an organisation governed by smart contracts and token-holder voting rather than traditional corporate structures, used in some payment protocols for governance.
dApp (Decentralised Application)
A dApp is a software application running on a blockchain rather than a centralised server, including payment widgets that merchants embed to accept crypto directly.
DeFi (Decentralised Finance)
DeFi is the ecosystem of financial applications on blockchain that operate without banks, powering the DEX aggregators and liquidity pools used in crypto payment settlement.
DEX Aggregator
A DEX aggregator sources liquidity from multiple decentralised exchanges to find the best swap rate, used in payment processing to optimise exchange rates during settlement.
Digital Asset
A digital asset is any asset in digital form with distinct ownership rights on blockchain, including cryptocurrencies, stablecoins, NFTs, and tokenised real-world assets.