DEXs are an important part of the decentralize finance space, and most of the time they operate without an intermediary institution managing the funds. Thus putting responsibility into the user hands and also into a smart contract, known as an AMM (Automated Market Maker) protocol. This means that users are able to trade whatever, whenever, and where ever they want. The market is always open 24/7 without any restrictions from institutions; that’s why Defi has become so popular over the years as it progresses.
Centralized Exchanges vs Decentralized Exchanges
You can buy and sell cryptocurrencies/tokens on both. However, a DEX is autonomous and run by algorithms and smart contracts, while a CEX is run by a central company.
The advantage of DEXs :
-no KYC required
-no market maker dependency
-great way for users to access tokens as soon as possible
AMM is a type of mechanism empowering DEXs used to provide liquidity in DeFi that relies on algorithms to price assets. It works differently from an orderbook exchange, which means you don’t need to have another trader on the other side to make a trade. Instead, you interact with a smart contract that provides the market for you in an autonomous fashion.
DEXs allows users to provide liquidity and earn fee money from it, known as yield farming. Liquidity pools are pools of crypto funds, locked in smart contracts that provide liquidity in DEXs. It facilitates for the user to engage in decentralized, permission-less trading, lending, borrowing activities, and in turn getting rewards in the form of the crypto.
The most popular Cronos network DEX is VVS finance since it was the first DEX and in part, an extension of Crypto.Com (the centralized version of CRO). Others of popped up as the growth of Cronos increases:
Marketplace: https://cronoschimp.club/market (edited)