were held by aggregators and over-the-counter trading platforms, so the proportion of DEXes and AMMs has increased.A decentralized exchange is an online service based on smart contracts that enable people to swap tokens without the intervention of a third party. The system is based on cryptocurrency contracts that allow users to exchange crypto assets without the help of a broker.
Additionally, each DEX offers some, but not all, crypto assets their service and supports a minimal number of swaps, so traders are faced with many switches based on their service criteria and are typically only buying or selling a few pairs. Rather, it is controlled by the algorithm with pre-determined rules. The algorithm constantly adjusts the cost of the two tokens based on the buying and selling activity in the pooled liquidity.