A peer-based model provides complete independence from the process of asset transfer and trade issuance is completely divergent from the centralized exchanges, where commodities are handed over to the middlemen who then have only IOUs for their customers.
Third-party authorities such as the Exchanges had to be removed to maintain DEXs because of the need to manage and vet transactions made within a single exchange. Additionally, with the help of smart contracts, DEXs can operate automated order books and trades, making them purely peer to peer.
Source: [url]https://mycryptoparadise.com/what-is-dex-how-does-it-work/[/url]
