What DEX Trading Is: A Technical Breakdown for Solana Developers
Decentralized exchange (DEX) trading lets users swap tokens directly from their own wallets against on-chain liquidity pools, with no account required and no custody handed to a third party. Unlike centralized exchanges, which hold user funds and match orders on internal books, DEXs settle trades through program-owned pools such as SOL/USDC. Each swap uses a quote from current pool balances and a slippage tolerance that reverts the trade if the output falls below the minimum. Because completed trades cannot be reversed, the article advises checking mint addresses, pool liquidity, and minimum-received values before signing. It also explains how aggregators and meta-aggregators compare routes across pools to improve execution.
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