# 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="/files/YEUk5MQnZBEBdGI53YCb" 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

\
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.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://monet-society.gitbook.io/avalanche/decentralized-exchanges/overview.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.