How does a decentralized exchange work?

Decentralized exchanges take a different approach to buying and selling digital assets: They operate without an intermediary organization for clearing transactions, relying instead on self-executing smart contracts to facilitate trading .

Uniswap revenue generation Uniswap is a decentralized protocol backed by the crypto hedge fund Paradigm. This means the platform does not make any money per se, with all fees user-controlled and collected by traders who provide liquidity .

Decentralized finance eliminates intermediaries by allowing people, merchants, and businesses to conduct financial transactions through emerging technology . This is accomplished through peer-to-peer financial networks that use security protocols, connectivity, software, and hardware advancements.