How Does the Lack of a Traditional Intermediary in a DEX Affect the Concept of Fiduciary Duty? ▴ Learn

How Does the Lack of a Traditional Intermediary in a DEX Affect the Concept of Fiduciary Duty?

In a DEX, the lack of a traditional intermediary (broker, bank) means there is no person or entity with a fiduciary duty to the user. The user interacts directly with the smart contract.

The concept of fairness is enforced by the code (protocol rules) rather than legal obligations. While the code aims for fairness, it cannot be sued for a breach of fiduciary duty, shifting the responsibility for protection against front-running to the user and the protocol design.

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