web3/concepts/dex.md

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Markdown

# Decentralized Exchange
Order-book based but peer-to-peer transactions (i.e. without market makers). This contrasts with [AMM](AMM.md) (automated market makers) who don't have an order book.
## Limitations
From https://academy.binance.com/en/articles/what-is-uniswap-and-how-does-it-work
> Due to the inherent limitations of [blockchain](blockchain.md) technology, it has been a challenge to build DEXes that meaningfully compete with their centralized counterparts. Most DEXes could improve both in terms of performance and user experience.