What Are “Gas Fees” on a Decentralized Exchange?

Gas fees are transaction fees paid to network validators or miners on a blockchain. On a decentralized exchange, every trade or interaction with a smart contract is a transaction that must be recorded on the blockchain.

The gas fee compensates the validators for the computational energy required to process and validate this transaction. The fee amount varies depending on the complexity of the transaction and the current level of network congestion.

High demand for block space leads to higher gas fees, making trading on a DEX more expensive.