A decentralized exchange, or DEX, is a trading platform that matches or executes swaps through blockchain-based logic instead of a central company controlling user funds or orders. Trades are usually settled by smart contracts, which means users interact directly from their wallets and the rules are enforced on-chain.
DEXs matter in cyber security because the same automation that makes them efficient also makes flaws dangerous. A bug in a contract, a weak upgrade path, or a mistake in liquidity or pricing logic can let an attacker drain funds, distort prices, or repeat an exploit quickly before operators react. Defenders reduce risk with code audits, monitoring, transaction limits, secure key management, and incident response plans that can pause or contain harmful activity. In investigations, on-chain records also help trace stolen assets, even when recovery is difficult.