Trading and using DEXes, and Blockchain.com’s DEX Aggregator.

Decentralized Exchanges

<h2 id="understanding-dex">Understanding Decentralized Exchanges (DEX)</h2>
A decentralized exchange (DEX) is a type of cryptocurrency exchange that operates on a blockchain network, typically utilizing smart contracts. Unlike centralized exchanges that rely on intermediaries to facilitate transactions, DEXs enable peer-to-peer trading directly between users. This peer-to-peer model eliminates the need for intermediaries, such as custodial wallets or centralized entities, giving users greater control over their assets.
<h2 id="key-features-of-dex">Key Features and Principles</h2>
<ul>
<li style="color: #000000;">Non-Custodial: DEXs allow users to retain control of their private keys and assets throughout the trading process. This eliminates the risk of losing assets due to hacks or exchange failures.</li>
<li style="color: #000000;">Peer-to-Peer Trading: DEXs connect buyers and sellers directly, enabling them to trade cryptocurrencies without relying on a central authority.</li>
<li style="color: #000000;">Trustless Transactions: DEXs leverage smart contracts to automate trade settlements and asset transfers. The use of blockchain technology ensures that transactions are executed without the need for trust or reliance on a third party.</li>
<li style="color: #000000;">Democratized Access: Most DEXs operate on open blockchain networks, allowing anyone with an internet connection and a compatible wallet to participate in trading activities. This fosters inclusivity and broadens access to financial services.</li>
</ul>
As the cryptocurrency ecosystem evolves, DEXs are likely to play an increasingly important role in empowering individuals and promoting financial sovereignty.
<h2 id="what-is-a-DEX-aggregator">What is a DEX Aggregator?</h2>
A DEX Aggregator is a platform or protocol that combines liquidity from multiple decentralized exchanges (DEXs) into a single user interface. This provides users with access to a larger trading volume and better prices. It automatically splits and routes users' orders across multiple DEXs finding the most competitive pricing and execution model. Using a DEX aggregators can offer reduced slippage and lower trading fees compared to trading on a single DEX.

A decentralized exchange (DEX) is a type of cryptocurrency exchange that operates on a blockchain network, typically utilizing smart contracts. Unlike centralized exchanges that rely on intermediaries to facilitate transactions, DEXs enable peer-to-peer trading directly between users.

What is a DEX (Decentralized Exchange)?

By leveraging blockchain technology and smart contracts, DEXs provide a decentralized, secure, and transparent platform for peer-to-peer trading.
<h2 id="enhanced-security">Enhanced Security</h2>
One of the primary benefits of DEXs is enhanced security. Unlike centralized exchanges that require users to deposit assets into a custodial wallet, DEXs enable users to retain control of their private keys and assets. With DEXs, users have full ownership and responsibility for their assets, empowering them to maintain a higher level of security.
<h2 id="transparent-and-trustless-transactions">Transparent and Trustless Transactions</h2>
Transparency is a fundamental principle of decentralized exchanges. Every transaction conducted on a DEX is recorded on the blockchain and can be audited by anyone. This transparency ensures that the trading history, order book, and smart contract interactions are publicly accessible. By leveraging smart contracts, DEXs enable trustless transactions, eliminating the need for intermediaries and ensuring that trades are executed as programmed.
<h2 id="lower-fees">Lower Fees</h2>
When interacting with a DEX users generally only pay transaction fees associated with blockchain network usage, such as gas fees in Ethereum-based DEXs. This reduction in fees benefits users, particularly frequent traders or those conducting small-scale transactions, as they can save significantly on trading costs.
<h2 id="Financial-Inclusion-and-Accessibility">Financial Inclusion and Accessibility</h2>
Most DEXs operate on open blockchain networks, allowing anyone with an internet connection and a compatible wallet to participate in trading activities. This fosters inclusivity and broadens access to financial services. Decentralized exchanges provide numerous benefits that align with the core principles of cryptocurrencies. Enhanced security, transparent and trustless transactions, lower fees and financial inclusion are key advantages that DEXs offer to users. As the cryptocurrency ecosystem continues to evolve and decentralization becomes more prevalent, DEXs are expected to play a vital role in transforming the traditional financial landscape by empowering individuals and fostering a more equitable and transparent trading environment.

By leveraging blockchain technology and smart contracts, DEXs provide a decentralized, secure, and transparent platform for peer-to-peer trading.

The Benefits of Decentralized Exchanges

Benefits of DEXes

At Blockchain.com, we are committed to pushing the boundaries of decentralized finance, in 2023 we announced a groundbreaking addition to our DEX aggregator that will revolutionize the way you trade assets across different EVMs.
<h2 id="Cross-Chain-Swaps">Cross-Chain Swaps in Seconds with Axelar/Squid Integration</h2>
We are proud to introduce Axelar, in collaboration with Squid, as our cross-chain DEX aggregator. Axelar is the underlying platform that powers Squid, a protocol designed for fast and liquid cross-chain swaps. This integration will empower users to trade assets between Ethereum Mainnet, Polygon, Arbitrum and BNB Smart Chain, unlocking a world of possibilities for decentralized trading.
<h2 id="how-it-works">How It Works: Unlocking Cross-Chain Liquidity</h2>
Axelar's innovative technology facilitates cross-chain liquidity through Squid, allowing users to trade assets across different EVMs. The Squid Boost feature enables fast-finality swaps that settle in seconds. From now on, same-chain swaps will be processed through 1inch, while cross-chain swaps will be handled through Squid/Axelar.
<h2 id="navigating-the-seas-of-cross-chain">Squid: Navigating the Seas of Cross-Chain Trading</h2>
Squid acts as the protocol layer, ensuring a smooth and secure experience for cross-chain swaps. It enables users to trade assets on one EVM for assets on another EVM, all within the Blockchain.com DEX aggregator.
<h2 id="why-it-matters">Why Cross-Chain Swaps Matter</h2>
Cross-chain swaps offer a host of benefits, including enhanced liquidity, reduced slippage, and increased trading opportunities. With Axelar and Squid, we are bringing these advantages to the fingertips of our users, empowering them to explore and trade across multiple EVMs in seconds.

At Blockchain.com, we are committed to pushing the boundaries of decentralized finance, in 2023 we announced a groundbreaking addition to our DEX aggregator that will revolutionize the way you trade assets across different EVMs.

Introducing Cross-Chain Swaps with Axelar on our DEX Aggregator

Cross-Chain Swaps

The current user experience in decentralized finance (DeFi) can be complicated and intimidating, especially for those who are new to crypto. However, we&rsquo;re excited to introduce a product that provides an intuitive entrypoint into DeFi&mdash;the Blockchain.com Decentralized Exchange Aggregator (Blockchain.com DEX Aggregator). We&rsquo;ve made the process really simple. With the Blockchain.com DEX Aggregator, you can access a range of decentralized exchanges to swap thousands of tokens on the Ethereum and Polygon blockchains right from your Blockchain.com DeFi Wallet, without ever giving up control of your crypto.
<h2 id="what-is-a-decentralized-exchange">What is a decentralized exchange?</h2>
A decentralized exchange is a peer-to-peer marketplace where crypto can be traded directly between buyers and sellers. Unlike centralized exchanges where the transfer of assets is managed by an intermediary or custodian, decentralized exchanges allow you to trade directly from your DeFi Wallet by interacting with self-executing agreements written in code called smart contracts. These smart contracts automatically establish the price of cryptocurrencies, facilitate trades, and settle transactions directly on the blockchain.
<h2 id="benefits-of-a-decentralized-exchange">What are the benefits of a decentralized exchange (DEX)?</h2>
<ul>
<li style="color: #000000;">Reduced counterparty risk: As there are no intermediaries or custodians involved in decentralized exchanges, there&rsquo;s less risk that one of the parties involved is unable to fulfill their obligations.</li>
<li style="color: #000000;">More tokens: Decentralized exchanges allow you to access essentially any token that&rsquo;s minted on the blockchain they&rsquo;re built on. There are also new tokens being listed all the time, increasing the opportunity to get in early on projects.</li>
<li style="color: #000000;">Greater access: Anyone with an internet connection can trade on a decentralized exchange. This has made them particularly popular in countries where many don&rsquo;t have access to traditional financial services.</li>
<li style="color: #000000;">Market efficiency: Self-executing smart contracts and access to a diverse range of liquidity pools provides a highly efficient trading experience with competitive pricing and rapid execution. In combination with our De-Fi Wallet, you can maintain complete control over your crypto assets from beginning to end.</li>
</ul>
<h2 id="what-is-a-dex-aggregator">What is a DEX Aggregator?</h2>
A DEX Aggregator is a platform or protocol that combines liquidity from multiple decentralized exchanges (DEXs) into a single user interface. This provides users with access to a larger trading volume and better prices. It automatically splits and routes users' orders across multiple DEXs finding the most competitive pricing and execution model. Using a DEX aggregators can offer reduced slippage and lower trading fees compared to trading on a single DEX.
<h2 id="how-to-use-the-blockchain-com-dex-aggregator">How to use the Blockchain.com DEX Aggregator</h2>
The Blockchain.com DEX Aggregator currently supports the Ethereum and Polygon blockchains and allows you to swap thousands of tokens with just a few steps:
<ol>
<li style="color: #000000;">Log in to your Blockchain.com DeFi Wallet.</li>
<li style="color: #000000;">Select DEX on the navigation bar.</li>
<li style="color: #000000;">Select the tokens and amount you&rsquo;d like to swap.</li>
<li style="color: #000000;">Click Preview Swap.</li>
<li style="color: #000000;">Review the transaction details and click Swap.</li>
</ol>
Don&rsquo;t forget, you need to have ETH or Matic in your DeFi Wallet to pay for the transaction gas fees.
<h2>What's coming next?</h2>
The Blockchain.com DEX Aggregator supports Ethereum and Polygon networks on the mobile DeFi Wallet and Ethereum on the Web Wallet. We will be adding support for Polygon on the web as well as other blockchains in the coming months.

The current user experience in decentralized finance (DeFi) can be complicated and intimidating, especially for those who are new to crypto.

Decentralized Exchanges

Decentralized Exchanges

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