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A decentralized exchange (DEX) allows users to make direct P2P transactions without the intervention of a centralized exchange (CEX).
A DEX is one application of decentralized finance (DeFi). It allows users to make P2P transactions without the intervention of a CEX.
DEXs, unlike CEXs, do not custody funds on behalf of their users, meaning that they are in total control of their funds and their private keys. Also, DEXs often don't require users to go through know-your-customer (KYC) processes.
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