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Development of decentralized exchanges based on smart contracts
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  AMM-Based Trading

Decentralized Exchange Development Services

We specialize in decentralized exchange development focused on non-custodial trading and smart contract execution. Our DEX solutions are built for on-chain liquidity, security, and protocol scalability.

130+ projects
Experience
since 2015
Experience
blockchain expert
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  Services

Decentralized Exchange Development Services

Our team offers a wide range of services for developing decentralized platforms

01

Custom DEX Development

We create customized, individual decentralized exchanges. The DEXs we develop are maximally adapted to your business model, target blockchain, and long-term protocol strategy.
02

AMM-Based Trading Protocols

Another area of our activity is the development of AMM-based trading protocols that allow for permissionless token exchanges with predictable pricing and stable liquidity.
03

Governance Mechanisms

The implementation of precise network management systems from our specialists allows token holders to transparently manage protocol updates and key parameters.
04

Multi-Chain & Cross-Chain DEX Solutions

The multi-chain and cross-chain DEX solutions our clients receive expand market reach while maintaining decentralized execution.
05

Wallet & Web3 Integration

We integrate DEX platforms with leading Web3 wallets to provide a seamless custody-free trading experience.
06

Smart Contract Development

Secure and efficient smart contracts developed by us ensure stable and efficient operation of swaps, pools, fees, and management logic.
07

Liquidity Pool & LP Reward Design

We design liquidity pools and reward mechanisms that incentivize long-term participation of liquidity providers.

  About

What Is a Decentralized Exchange (DEX)?

A Decentralized Exchange (DEX) is a peer-to-peer marketplace that allows users to trade cryptocurrencies in a non-custodial manner, directly through smart contracts. Unlike centralized counterparts (CEX), a DEX eliminates the need for a middleman, meaning users retain full control over their private keys and digital assets throughout the entire trading process. This architecture leverages blockchain’s transparency to ensure that every transaction is verifiable on-chain, removing the risks associated with centralized fund management.
Modern DEX platforms have evolved from simple swap protocols into sophisticated financial ecosystems. By utilizing Automated Market Maker (AMM) algorithms or on-chain order books, these platforms provide continuous liquidity without requiring a traditional market maker. For businesses, launching a DEX means building a trustless environment where slippage is minimized through optimized mathematical models and capital efficiency is maximized for liquidity providers.
Beyond simple token swaps, the decentralized exchange landscape now encompasses cross-chain interoperability, concentrated liquidity, and advanced derivatives trading. As the Web3 economy matures, DEXs serve as the fundamental liquidity layer for DeFi protocols, enabling everything from yield farming to decentralized lending. At Merehead, we prioritize live networks like Solana, Arbitrum, Tron, and Atom to ensure our clients' DEX platforms compete with CEX speeds.
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  Step-by-Step

How a Decentralized Exchange Works

On-chain trading powered by smart contracts and liquidity pools

Wallet Connection & Authentication
Each user can connect their wallet to the DEX interface without having to create accounts and transfer responsibility to the management company.
On-Chain Trading Fee Distribution
Liquidity providers receive commissions from each transaction according to the distribution principle, which is clearly stated in the exchange rules.
Liquidity Pools & Asset Reserves
Liquidity providers place their assets in pools in exchange for LP tokens for continuous trading and receiving commissions on each transaction.
Automated Market Maker (AMM) Pricing
Pricing in DEX is determined by AMM algorithms based on liquidity pool balances, not centralized order books, so the price of tokens is formed automatically.
Smart Contract–Based Trade Execution
All swaps and transactions on the exchange are executed automatically using smart contracts deployed on the blockchain, without manual management.
Transparent Settlement & Finality
Blockchain technologies ensure transparency and irreversibility of each transaction, so each transaction can be audited.
The core of a DEX is its smart contract logic, which replaces the traditional matching engine. In an AMM-based DEX, liquidity providers deposit pairs of tokens into 'liquidity pools', and the price is determined by a constant product formula. When a trader executes a swap, the smart contract automatically calculates the price, adjusts the pool reserves, and transfers assets between the user's wallet and the pool in a single atomic transaction. We have experience implementing Uniswap v3 solutions and providing a comprehensive guide on DEX creation to ensure a stable platform and a quality user experience.

  Features

Core Features of a Decentralized Exchange Platform

Intro
The key principle of building a decentralized exchange platform is full on-chain execution. It is a platform where assets are fully controlled by users, and trading occurs without permission or centralized intermediary controllers, directly, transparently, and continuously.
On-Chain Transparency
All transactions, fees, and protocol rules are recorded in the blockchain and can be independently verified at any time using any criteria.
Non-Custodial Project Architecture
Users retain full control over their assets. Only they decide whether to consent to the execution of transactions, and direct transactions are made from user wallets without transferring custody rights.
Automated Market Maker (AMM)
AMM algorithms are constant price analytics and their clear and transparent formation for continuous trading. Dynamic determination of token prices based on LP balances allows users to quickly respond to changes in prices.
Liquidity Pools
Liquidity pools provide the asset reserves needed for trading and allow users, as liquidity providers, to receive commissions on each swap.
Permissionless Token Swaps
Anyone can independently trade supported tokens on the DEX without registration, approvals, or centralized restrictions. Anonymity and unlimited transactions open up more possibilities.

  Architecture

Decentralized Exchange Architecture We Build

Principles of scalability and full network execution, focus on security are the key principles of our development of decentralized exchange architecture. Thanks to a modular approach to development, we offer a convenient, easily scalable and centralized management-independent trading protocol. We customize each DEX to the owner's requirements.

01
Smart Contracts Layer
Swaps are executed and liquidity pools are managed at the smart contract level. The smart contracts we develop apply the protocol rules directly to the blockchain.
02
AMM & Liquidity Logic
Advanced analytics and liquidity logic in DEXs are the responsibility of automated market maker algorithms. They are the ones that shape token prices and liquidity based on pool balances and predefined curves.
03
Web3 Frontend
The Web3 technology that we are building into the interface allows users to transparently interact with the DEX directly from their wallets through a secure interface and personalize their own experience.
04
Indexing & Analytics
Leveled indexing and analytics in DEX is a continuous aggregation of data across the network and timely reporting on trading activity and liquidity. Get real-time data for flexible decisions.
Governance & Upgrade Modules. Protocol development through management modules and network updates ensures transparency and preservation of core exchange functionality when updating or scaling.

  Cost

Cost of a Decentralized Exchange Development

The investment required to develop a decentralized exchange varies significantly based on the protocol's complexity and the chosen blockchain ecosystem. A standard AMM-based swap platform requires a robust core of smart contracts, a secure front-end interface, and integration with popular non-custodial wallets.

However, adding features like multi-chain bridges, advanced analytics dashboards, or limit order functionality will naturally increase the development roadmap and budget. Pricing varies based on the underlying blockchain and feature complexity. Check our breakdown of DEX development costs in 2026 for a detailed MVP vs. Enterprise analysis.
Cost Estimates
AMM-based DEX: $40,000 - $60,000
DEX with liquidity: $60,000 - $90,000
Multi-chain DEX: $80,000 - $120,000
DEX with governance: $90,000 - $120,000
Security audits are a non-negotiable cost factor in DEX development. Given that smart contracts manage millions in TVL (Total Value Locked), rigorous testing and third-party audits are essential to mitigate risks of reentrancy attacks or logic exploits. For the US market, we also recommend budgeting for a compliant UI that can integrate geo-fencing or optional KYC layers to align with evolving regulatory frameworks.

Maintenance and scalability also play a role in long-term costs. As transaction volumes grow, your DEX will require ongoing optimization to reduce gas costs for users and updates to support new token standards. Typically, a production-ready DEX project costs between $60,000 and $90,000, and the implementation time is between 2 and 4 months.

We will be happy to advise you if you are planning to launch a decentralized exchange, help you determine the optimal scope of development, and, accordingly, prepare a transparent cost estimate based on your goals and the task set for the team.
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Who Should Launch a Decentralized Exchange

top crypto fintech startups
crypto entrepreneurs and investors
crypto on/off-ramp businesses
local payment aggregators

  Reason

Why Choose Us as Your DEX Development Company

Merehead combines deep cryptographic expertise with a track record of building high-performance DeFi protocols, specializing in the creation of non-custodial trading protocols that serve as the backbone of the decentralized finance (DeFi) ecosystem. With over 10+ years in blockchain development, we understand that a DEX isn't just a swap tool—it's a financial instrument that must be resilient, fast, and secure. Our team consists of senior Solidity and Rust developers who have successfully deployed protocols across 10 different mainnets.
0+ years on the market
0+ completed projects
Our development philosophy is 'Security by Design'. We don't just write code; we architect systems that are resistant to MEV (Maximal Extractable Value) attacks and front-running. By utilizing audited frameworks and conducting internal stress tests, we ensure that every DEX we launch is ready for institutional-grade traffic and has a foundation that can withstand extreme market volatility.

We offer a transparent, full-cycle partnership. Our team helps businesses understand the key differences between CEX and DEX to choose the right model for their specific market goals. From initial whitepaper consulting and mathematical modeling of your AMM to post-launch liquidity bootstrapping strategies, we stay with you at every step. We don't just deliver a product; we provide the technical documentation and training your team needs to manage the protocol autonomously through decentralized governance.
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Real Experience in Crypto Exchange Development
Merehead has hands-on experience in developing decentralized crypto exchanges based on Solidity and Rust smart contracts. This allows us to design DEX solutions that take into account liquidity behavior, user incentives.
Focus on Production-Ready Protocols
The development team designs projects with a focus on scalability and security. Each DEX undergoes extensive testing before launching in a live environment with regular protocol updates.
Security-First Approach
Security is a key focus in DEX development. The team designs the architecture with best practices and integration of Ethereum or Solana-based smart contracts.
Scalable Architecture
All projects will be designed to be easily scalable and upgradable. In some cases, microservices architecture and automated testing are used to build large DEX platforms.

Our company has developed 8 decentralized platforms with a combined TVL of over $10 million. A team of 18 specialized blockchain engineers worked on the projects, including smart contract development.

  FAQ

Have questions in mind?

Answers to the most frequently asked questions from our clients

The main difference lies in the levels of control over users’ assets. A Centralized Exchange (CEX) is run by a central company that stores and controls users’ funds and executes transactions through a centralized infrastructure. A Decentralized Exchange (DEX) allows trading directly from a user’s wallet and provides the ability to control their assets using smart contracts. Another difference with DEX is the ability to maintain anonymity without compromising security.

We approach each project individually, taking into account the complexity of the AMM, the choice of blockchain and security requirements, and this determines the development time. On average, the development of a decentralized exchange takes from 3 to 6 months.

The cost of creating a DEX is directly affected by the characteristics of the protocol, its management, and the number of chains that need to be supported. In our company, the development price usually ranges from $40,000 to $150,000.

Yes, that's what we do: we build our own decentralized exchanges based on AMM, take inspiration from leading protocols, and adapt the product to your specific business and liquidity model.

We help develop liquidity pool structures, incentive mechanisms and AMM logic, but we do not act as liquidity providers.
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10 years of experience

  Security

Security in Decentralized Exchange Development

Secure Smart Contract Design
Secure smart contract design by our team ensures that swaps, pools, and fees are always as intended and follow a well-defined logic. Well-structured contracts reduce the attack surface and simplify future audits and updates.
Exploit Prevention & Testing
Comprehensive testing helps identify vulnerabilities such as re-login, price manipulation, and logic flaws before deployment. Preventing exploits at the protocol level protects both user funds and your DEX’s long-term reputation as a trusted trading platform.
Audit-Ready Architecture
The architecture, always ready for audit and adapted for transparent review, allows independent security agents to verify the protocol logic and all transactions made. The blockchain principle of recording every action works for increased security, and this significantly increases trust from users, liquidity providers and institutional partners. Our DEX solutions prioritize user sovereignty, ensuring seamless non-custodial wallet connectivity via WalletConnect and browser extensions.
Security is the absolute priority in decentralized trading. Our development process includes multi-stage testing, utilizing tools like Slither, Mythril, and Echidna for automated vulnerability scanning, followed by manual line-by-line code reviews. We focus on protecting your protocol against common DeFi threats such as flash loan attacks, oracle manipulation, and sandwich attacks. We implement 'Circuit Breaker' patterns in our contracts to allow for emergency pauses in case of detected anomalies.

  Liquidity

Liquidity Strategy for DEX Platforms

Liquidity Pool Modeling
Before finalizing the architecture, we conduct liquidity pool simulation. Preliminary simulation helps to select effective asset pairs, their balance and usage on the DEX.
LP Incentives & Rewards
Balancing LP rewards is another essential security step. Accurately balancing incentive mechanisms encourages liquidity providers to invest capital for long periods, increases loyalty, and prevents unfair commission distribution.
AMM Curve Optimization
AMM curves drive token prices. We perform a clear optimization of the AMM curve, which increases capital efficiency and reduces slippage for traders. Optimized curves are better adapted to volatile markets and various asset pairs.
Why this case is important
A DEX is only as strong as its liquidity. Whether implementing Uniswap-style AMM or a hybrid model, we help integrate with top crypto liquidity providers to maintain tight spreads. To ensure your platform is attractive to traders from day one, we help design and implement sophisticated liquidity incentives, including liquidity mining, staking rewards, and yield farming protocols. We integrated liquidity providers who helped create the market even at the first stage of the platform launch.

  Management

Governance & Protocol Management

To achieve true decentralization, we implement robust DAO (Decentralized Autonomous Organization) structures. This allows your community to vote on protocol upgrades, fee structures, and token listings using governance tokens. We develop secure voting modules and transparent proposal systems that ensure the platform evolves according to the users' needs. We typically use Governor contracts from OpenZeppelin and based on PyTeal to provide a quality standard, audited framework for protocol governance.
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Governance Tokens
Governance tokens provide stakeholders with the opportunity to participate in protocol decision-making. We are developing the mechanics of granting governance tokens to implement effective long-term self-governance and self-regulation by users, liquidity providers, and the decentralized exchange (DEX) itself.
Voting & Proposals
Transparency and the ability to put a proposal to a general vote is the basis for implementing changes to the exchange protocol. From our side, it is a guarantee that future DEX updates will reflect collective decisions, not unilateral control.
On-Chain Parameter Control
Controlling network parameters allows you to adjust the protocol, including adjusting fees, rewards, and pool settings, through governance actions. This approach allows the DEX to adapt while maintaining transparency and decentralization, and provides its owner with enhanced capabilities to optimize the exchange for current needs and market trends.
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Yuri Musienko
Business Development Manager
Yuri Musienko specializes in the development and optimization of crypto exchanges, binary options platforms, P2P solutions, crypto payment gateways, and asset tokenization systems. Since 2018, he has been consulting companies on strategic planning, entering international markets, and scaling technology businesses. More details