Definition ∞ Decentralized exchange flow refers to the movement of digital assets through non-custodial trading platforms where users maintain direct control over their funds. This process involves executing trades directly on a blockchain without an intermediary holding assets. The flow typically utilizes automated market makers or order books implemented as smart contracts. It represents a key aspect of open and permissionless financial activity within the digital asset ecosystem.
Context ∞ News concerning decentralized exchange flow often centers on market trends, liquidity shifts, and regulatory discussions surrounding these platforms. Analysts frequently monitor these flows to assess sentiment and activity in the broader decentralized finance (DeFi) sector. The ongoing challenge for decentralized exchanges involves optimizing efficiency and user experience while adhering to regulatory expectations without compromising their fundamental decentralized nature.