Little Penguin Notes | What is DEX? Why do we need decentralized exchanges?

You may have heard the term 'DEX', but what exactly is it?

🏦 CEX vs DEX

The most commonly used Binance is a CEX (centralized exchange). You deposit your coins, and the platform helps you match trades.

DEX (decentralized exchange) is completely different:

No need to register an account, no need for KYC, your assets are always traded in your own wallet, executed automatically by smart contracts.

🤔 Why do we need DEX?

'Not your keys, not your coins.'

CEXs, no matter how big, come with risks (remember FTX?). DEX allows you to have full control over your assets while trading, without trusting any intermediaries.

🐬 Cetus: The top DEX on Sui

Cetus Protocol is the largest decentralized exchange on the Sui chain, offering features such as token swaps, liquidity provision (LP), and concentrated liquidity (CLMM).

Next time, let's talk about 'what exactly is a liquidity pool' 👀