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Because traders on the decentralized Trade typically do not have to transfer their property on the exchange prior to executing a trade, decentralized exchanges lessen the risk of theft from hacking of exchanges,[27] but liquidity vendors do must transfer tokens to the decentralized Trade.
A further DeFi protocol is Uniswap, which happens to be a decentralized exchange (DEX) build to trade tokens issued on Ethereum. In lieu of employing a centralized exchange to fill orders, Uniswap pays users to kind liquidity pools in exchange for just a share from the charges collected from traders swapping tokens out and in with the liquidity swimming pools.
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