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Post Info TOPIC: How do Decentralized exchanges make money?


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How do Decentralized exchanges make money?


 

Decentralized exchanges (DEXs) make money mainly through transaction fees charged on each trade. Every time a user swaps tokens on the platform, a small percentage, usually between 0.1% to 0.3%, is collected as a fee. This fee is either kept by the DEX, shared with liquidity providers, or both. Additional revenue generated in DEX development can include token listings, premium features, or issuing their own native token, which can increase in value as the platform grows. Since DEXs operate individually through smart contracts, their profit depends on maintaining high liquidity and promoting frequent trading activity.



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