Decentralized exchanges facilitate peer-to-peer trading of cryptocurrencies without the need for a central authority or intermediary. This model promotes user sovereignty as it eliminates the risks associated with centralized exchanges, such as hacking, fraud, and restricted access. DEXs utilize smart contracts on blockchain platforms to automate trades and ensure trustless transactions. Crucial components of DEXs are liquidity pools, automated market makers (AMMs), and user interfaces that enable seamless trading experiences.