DEX
Definition
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders. DEXs fulfill one of crypto’s core possibilities: fostering financial transactions that aren’t officiated by banks, brokers, or any other intermediary. Many popular DEXs, like Uniswap and Sushiwap, run on the Ethereum blockchain.
How do DEXs work?
Unlike centralized exchanges like Coinbase, DEXs don’t allow for exchanges between fiat and crypto — instead, they exclusively trade cryptocurrency tokens for other cryptocurrency tokens. Via a centralized exchange (or CEX), you can trade fiat for crypto (and vice versa) or crypto-crypto pairs
Decentralized exchanges, on the other hand, are simply a set of smart contracts. They establish the prices of various cryptocurrencies against each algorithmically and use “liquidity pools” While transactions on a centralized exchange are recorded on that exchange’s internal database, DEX transactions are settled directly on the blockchain.
How do you interact with Rabid DEX?
You can connect to a DEX using a Rabid wallet such as Metamask (for your web browser) .
A QR code should pop up, which you can scan with your phone’s camera (tap the upper-right corner of your CEX Wallet app to access the camera). Once scanned, your wallet will be connected to the DEX/Wallet.
You’ll also need a supply of $MATIC to start trading/use the DEX, which you can get from an exchange like Coinbase/Binance/Kraken etc... The reason you need some $MATIC is for paying fees (known as gas) that are required for any transaction that happens on the Polygon chain. These are separate from the fees the DEX itself charges.
How do DEX fees work?
In the DEX fee there is a fixed fee of 0.15% both for the purchase that is directed to a pool where it is distributed back to all holders. and the sale of the token that goes to a pool where it is reinvested in the most advantageous stakes with the proceeds being reverted to the value of the currency.
The temporary after acquiring the asset with a value of 0.21% for 7 days with the percentage decreasing each day by 0.03%. That same percentage is directed directly to the currency value,
But it’s important to note that the fees the DEX charges can be dwarfed by gas fees to use the Ethereum network once we migrate there but we need the evolution from them. The ongoing ETH2 upgrade (as well as a number of “layer 2” solutions like Polygon) are designed in part to lower fees and speed up transactions. The chain fee is Polygon's own, paid in $MATIC usually moves from $0.0005 to $0.2 That will help on fees in the interaction with the DAO platform
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