What Is the Role of Decentralized Exchanges (DEXs) in Derivatives Trading?

DEXs enable peer-to-peer derivatives trading without the need for a central intermediary or custodian. They use smart contracts to automate functions like margin management, liquidation, and settlement, offering greater transparency and censorship resistance.

They primarily facilitate perpetual swaps and options trading, relying on liquidity pools or automated market makers (AMMs) instead of traditional order books.