# What is a DEX?

Decentralized exchange (DEX) is a digital asset exchange platform that operates on the principle of decentralization, i.e. without the participation of a central authority. A decentralized exchange allows you to trade tokens in a peer-to-peer mode, i.e. directly between investors. For this reason, users do not have to transfer their assets to the exchange, keeping them on their own wallets all the time. This reduces the risk of possible theft or hacking of the exchange servers. Trading decentralization also prevents potential price manipulations or fraudulent trade volumes. DEX is usually governed by its users who can make use of specific exchange tokens (MEOW in our case), awarded to stakers, liquidity providers or bought on the open market.
