Lecture 4.0.0. The Inside of a Decentralised Exchange
When you login to a Dex, there are five main sections you will see:
(1). Trade Section:
This area consists of two main parts:
(a). Exchange
This is the area where you can trade one crypto for another. Hence, some Dex name this section Exchange while others call it Swap.
Some Dex try to differentiate Swap from Exchange, often the difference has to do with slight variations in charged fees.
(b). Liquidity Section
This is where you supply your crypto to a liquidity pool so that you can start earning interest for such supply.
(2). Farm Market
Each liquidity pool is called a Farm; therefore, this section is where you will see all the various farm markets in which you can supply your cryptos to provide liquidity and earn interest as passive incomes.
(3). Pool Section
This is where you can stake your crypto directly into a blockchain; the staked cryptos are then utilised by the blockchain to mint new cryptos for you.
Do not confuse the Pool Section with the Farm Market. In the pool section, you do not supply liquidity, hence, your cryptos are not traded, that is, your cryptos cannot be borrowed, sold, or be involved in any transaction unlike in the Farm Market where your supplied cryptos are used for all these transactions.
(4). NFT Section
This is where you can mint and trade your NFTs.
(5). Information Section
This is where you can read more about Dex and what they offer as well as the Terms and Conditions of service.
This section includes:
• Launchpads where you get advertisements and can buy presales of upcoming products
• Github for developers who want to build upon the existing structures.
Other accessories you can have in a Dex include Gamification where you can see the games being run on the blockchain.