> For the complete documentation index, see [llms.txt](https://monet-society.gitbook.io/avalanche/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://monet-society.gitbook.io/avalanche/decentralized-exchanges/overview.md).

# Overview

Decentralized exchanges are decentralized financial (DeFi) platforms that operate without a central authority, unlike centralized exchanges, allowing users to transact peer-to-peer from wallet to wallet whilst maintaining complete control of their assets.

<figure><img src="https://1327640876-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FJtnI8f4zvlOqzxMEWk4H%2Fuploads%2FhHifCorX7wPtjRW7vZgg%2FDEX%20(AVAX).jpg?alt=media&amp;token=652ac109-95d7-4d23-b35e-af57c320687a" alt=""><figcaption></figcaption></figure>

There are a number of DeFi applications built on the Avalanche blockchain that offer different services and features like lending and swapping crypto, staking Avalanche native tokens, many of which also allow cross-chain trading.

DEXes help to reduce the risk of price manipulation, as well as hacking and theft because crypto assets are never in the custody of the exchange itself.

### Key Takeaways For Creators and Collectors

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Complete decentralization is not possible for the time being as it’s still necessary to use centralized exchanges to initially fund a wallet in exchange for fiat currency. Still, creators and collectors can benefit from these platforms by being able to:

* **Trade cryptocurrency with cryptocurrency** to receive the equivalent value thereof and diversify your portfolio with smaller token not found on centralized exchanges
* **Incredibly high interest staking to make more cryptocurrency** from your portfolio as opposed to simply “hodling” it long-term in your wallet (holding on for dear life)
* **Supply tokens as collateral to earn interest and enable lending** or borrow tokens against your collateral

\* high-interest Defi products are risky, DYOR before investing

*‍Want to learn more about decentralized exchanges?*&#x20;

Check out our comparison of leading Avalanche DEXes.