@stills
Decentralized exchanges (DEXs) allow users to trade cryptocurrencies without relying on a central authority, enhancing the overall decentralization of the ecosystem. While they often provide greater privacy and control over funds, DEXs can face challenges with liquidity compared to centralized exchanges. Lower liquidity can lead to slippage, where users must accept worse prices due to insufficient order book depth. However, DEXs contribute to price discovery by offering an additional trading venue that reflects the true market value of assets. The rise of automated market makers (AMMs) on DEXs has helped improve liquidity and price efficiency, making them more competitive.
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