Breaking Down Decentralized Exchange

This paper gives an in-depth analysis of the key elements and technologies that make up the Decentralized exchange (DEX) ecosystem. We examine the main characteristics that set DEXs apart from centralized exchanges, highlighting the advantages and difficulties of this cutting-edge paradigm. We also consider the merits and disadvantages of the various DEX model types, including automated market makers (AMMs) and order book-based exchanges. The study also analyses potential ways to reduce these vulnerabilities and covers the primary security and legal issues surrounding DEXs. We conclude by looking at the most recent developments in the DEX market, such as the growth of cross-chain interoperability and decentralized finance (Decentralized Finance) protocols.