What is DESU
By Koen de Vries · Payments and Wallets Writer
A decentralised exchange, or DEX, is a marketplace for crypto assets that runs without a central company holding your funds. You connect a wallet, place an order or swap through a smart contract, and keep control of the assets until the trade executes.
What a DEX replaces
On a traditional exchange, you deposit money into an account controlled by the exchange. The exchange matches your order, holds your balance in its own ledger, and pays you when you withdraw. A DEX removes that custody step. The trade happens between wallets through code. There is no account balance stored on a central server and no withdrawal queue managed by a support team.
This changes what can go wrong. You no longer depend on an exchange staying solvent or processing withdrawals. You do depend on the smart contract working as described and on your own wallet being secure.
Two pages that pick up where this one stops: SOL and Fear and greed index.
How trading works without an order book
Some DEXs use an order book where buyers and sellers post prices. Others use liquidity pools. A pool holds two assets supplied by users. The contract prices a swap based on the ratio of those assets in the pool. When you trade, you add one asset and remove the other, and the ratio shifts to a new price.
Liquidity providers earn fees from trades in the pool. They also carry a risk: if prices move, the pool’s automatic rebalancing can leave them with a different mix of assets than they started with.
Where the assets can come from
A DEX can support assets across many blockchains. Dexsport, for example, lists over 85 coins across more than 20 blockchains, based on its proposal documentation. That range matters because a DEX is not limited to assets issued on one chain. The same interface can route a trade on one network or another, depending on where the token lives.
Take this as background, then check the specifics — minimum stake, withdrawal window, and which documents get asked for.
Take a look at DexsportIdentity and licensing
Some DEXs allow entry without identity checks. Dexsport describes anonymous access through Web3 wallets, with no KYC requirement. You connect a wallet rather than submitting personal documents.
That does not mean the operator is unregulated. Dexsport is operated by Dexapp LTD under an Anjouan licence, according to the same proposal. A DEX can therefore combine no-KYC access for users with a licensed corporate structure behind the platform.
What you still handle yourself
A DEX does not hold your assets, so it also cannot recover them if you lose access to your wallet. There is no password reset and no support agent who can reverse a transaction. The private key or seed phrase is the only way to authorise a trade or move funds.
Fees also differ from a centralised exchange. You may pay a network fee for the transaction itself plus a fee to the pool or protocol. The exact amounts depend on the chain, the pool, and current network demand, so a calculator is the reliable way to estimate a specific trade.
The questions that come up
How does trading on a DEX work without a central order book?
Some DEXs use liquidity pools where users supply two assets, and the smart contract prices a swap based on the ratio of those assets in the pool. When you trade, you add one asset and remove the other, shifting the ratio to a new price.
What does a DEX replace compared to a traditional exchange?
A DEX removes the custody step where a traditional exchange holds your deposited funds in its own ledger. Instead, trades happen directly between wallets through code, so you no longer depend on an exchange staying solvent or processing withdrawals.
What risks do liquidity providers carry on a DEX?
Liquidity providers earn fees from trades in the pool, but if prices move, the pool’s automatic rebalancing can leave them with a different mix of assets than they started with.
How many assets can Dexsport support through its DEX?
Dexsport lists over 85 coins across more than 20 blockchains, based on its proposal documentation. A DEX is not limited to assets issued on one chain, and the same interface can route a trade on different networks depending on where the token lives.
What happens if I lose access to my wallet on a DEX?
A DEX cannot recover your assets if you lose access to your wallet, because there is no password reset and no support agent who can reverse a transaction. The private key or seed phrase is the only way to authorise a trade or move funds.