How does decentralized finance work?

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.

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Why are exchanges decentralized?

Decentralized exchanges can also prevent price manipulation or faked trading volume through wash trading , and are more anonymous than exchanges which implement know your customer (KYC) requirements. There are some signs that decentralized exchanges have been suffering from low trading volumes and market liquidity.

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