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How Does a Centralized Exchange (CEX) Price Feed Differ in Risk from a DEX Feed?

A CEX price feed is determined by its internal order book and is generally more resistant to single-transaction manipulation than a low-liquidity DEX. However, a CEX feed is subject to counterparty risk, regulatory risk, and potential manipulation by the exchange itself.

A DEX price feed, while more susceptible to flash loan attacks, is transparent and decentralized, but only as robust as its pool liquidity.

How Does an AMM Differ from a Centralized Exchange (CEX)?
What Is the Role of an Order Book in Preventing or Facilitating Front-Running on a Centralized Exchange (CEX)?
What Is an Automated Market Maker (AMM) in the Context of a DEX?
How Does a Decentralized Exchange (DEX) Handle Slippage Compared to a Centralized Exchange (CEX)?