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✨AUSD Exchange

www.aomfund.com

A DEX (Decentralized Exchange) is a Web3-based crypto trading platform that allows users to swap tokens directly with each other — without a central authority or intermediary (like Binance or Coinbase).

It runs on smart contracts deployed on a blockchain (such as Ethereum, BNB Chain, or Polygon), ensuring that trades are secure, transparent, and non-custodial (you always control your wallet and funds).

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🔹 Simple Definition

A DEX (Decentralized Exchange) is a blockchain-powered marketplace where users trade cryptocurrencies peer-to-peer using smart contracts, not a company.

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⚙️ How a DEX Works

  1. You connect your crypto wallet (e.g., MetaMask, Trust Wallet).

  2. Select tokens to swap (e.g., swap USDT → ETH).

  3. Smart contract automatically finds or creates a liquidity pool.

  4. You confirm the transaction → blockchain processes it.

  5. Tokens are exchanged directly into your wallet.

✅ No sign-up ✅ No KYC ✅ You keep control of your private keys

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💧 Liquidity Pools

Most DEXs use a system called an Automated Market Maker (AMM) — instead of matching buyers and sellers like traditional exchanges.

  • Users provide pairs of tokens (e.g., ETH + USDT) to create a liquidity pool.

  • Traders swap tokens within that pool.

  • Liquidity providers (LPs) earn trading fees as rewards.

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🏦 Popular DEX Platforms

DEX
Blockchain
Core Token
Features

Uniswap

Ethereum

UNI

AMM-based, very popular

PancakeSwap

BNB Chain

CAKE

Low fees, yield farming

SushiSwap

Multi-chain

SUSHI

Liquidity mining, staking

Curve Finance

Ethereum

CRV

Optimized for stablecoins

Balancer

Ethereum

BAL

Customizable liquidity pools

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💡 Key Advantages

  • 🔐 Non-custodial: You control your funds — no exchange wallet needed.

  • 🌎 Global access: Anyone with a wallet can trade.

  • 💰 Earn fees: Become a liquidity provider to earn passive income.

  • ⚙️ Transparent: All transactions are recorded on-chain.

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⚠️ Challenges

  • Gas fees (especially on Ethereum).

  • Price slippage if liquidity is low.

  • Risk of smart contract exploits or impermanent loss for LPs.

  • Limited fiat (cash) on/off ramps.

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🔧 Types of DEX

  1. AMM (Automated Market Maker) – e.g., Uniswap, PancakeSwap

  2. Order Book DEX – e.g., dYdX, IDEX

  3. Aggregator DEX – e.g., 1inch, Paraswap (finds best price across many DEXs)

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