What is the role of smart contracts in decentralized exchange development?

#1 · 2025年 7月 9日, 下午6:24

Smart contracts are the core part of a decentralized exchange (DEX). They automatically handle trading functions like order matching, token swaps, liquidity pooling, and fee distribution without third-party involvement. This ensures that all transactions are transparent and secure. Once deployed on a blockchain, these contracts run exactly as coded, reducing the risk of fraud or manipulation. If you want to know how smart contracts work in a decentralized exchange, you can refer to this blog, which explains their role in simple terms.