How DEX Liquidity Works: AMMs, Slippage, and Real Trading Costs
February 5, 2026 ยท 14 mins read
Decentralized exchanges (DEXs) have become the backbone of decentralized finance (DeFi), enabling peer-to-peer trading without intermediaries. Unlike centralized exchanges (CEXs), which rely on order books and custodial systems, DEXs use automated protocols to match buyers and sellers directly on the blockchain. The key to their success lies in liquidity. The ability to execute trades quickly and […]