Exploring Pi DEX on Testnet: The Gateway to Pi-Powered DeFi and Ecosystem Tokens

Pi DEX is the decentralized exchange developed by Pi Network, a mobile-first blockchain project focused on broad user access and gradual decentralization. The exchange operates exclusively on the Pi Testnet, where users known as Pioneers can test decentralized finance tools using Test-Pi, a token with no monetary value.

The Testnet environment is designed for learning and system validation. It allows users to trade ecosystem tokens, provide liquidity, and manage assets without exposure to financial risk. The approach emphasizes usability, transparency, and technical readiness before any Mainnet release.

As of February 2026, Pi DEX remains in Testnet. Core components include a decentralized exchange interface, an automated market maker, liquidity pools, and token management tools integrated directly into the Pi Wallet.

Launch Details and Core Features

Pi DEX and its supporting tools were released on September 30, 2025. The announcement coincided with Pi Network co-founder Dr. Chengdiao Fan's presentation at TOKEN2049 in Singapore (October 1-2, 2025), where she discussed crypto's shift from liquidity to utility.

The Testnet rollout included several components:

Decentralized Exchange (DEX)

The DEX allows peer-to-peer token trading without intermediaries. Users can swap tokens at market prices or submit limit-style orders. Trades are executed on-chain and automatically matched using available liquidity sources.

Automated Market Maker (AMM)

The AMM replaces traditional order books with liquidity pools governed by mathematical formulas. Token prices adjust based on the asset ratio in each pool. This structure enables continuous trading without requiring buyers and sellers to be present simultaneously.

Liquidity Pools

Users can deposit token pairs into pools and earn a share of trading fees. Withdrawals return the contributed assets based on current pool ratios. Pool balances change as trades occur, reflecting real-time market activity.

Token Creation and Management

Developers can create custom test tokens on the Testnet. These tokens are intended for experimentation and application testing. Mainnet token creation remains restricted until formal guidelines are issued. Pi Network has stated that Mainnet standards will prioritize real utility and sustainable distribution over memecoin-style activity.

These tools integrate with existing Pi infrastructure, including Pi Wallet, Pi KYC, .pi Domains, and the Ecosystem Directory Staking program. Together, they aim to reduce abuse and support fair access.

By late 2025, more than 100 test tokens had been created, and over 215 applications had been submitted through Pi Network hackathon programs.

Key Updates in Late 2025 and Early 2026

Following initial deployment, Pi Network introduced several updates based on Testnet usage and feedback.

User Interface Improvements

A redesigned interface improved navigation within the Pi Wallet. Token discovery, pool browsing, and transaction flows were simplified for mobile users.

Pi-Denominated Trading Pairs

Liquidity pools were reorganized around Pi-based trading pairs. This change improved consistency and helped concentrate liquidity around the native token.

Trust and Ranking Signals

Domain verification was added as a visible trust indicator for tokens. A liquidity-based ranking system now highlights pools with deeper liquidity, helping users identify pools with lower slippage.

Increased Testnet Activity

In early 2026, new test tokens, including LatinChain, CYBER, Archimedes, and ShrimpSwap, became active. These tokens are used to simulate price discovery, liquidity behavior, and trading patterns.

How Pi DEX Works: Step-by-Step Guide for Testnet Users

Step 1: Access the Pi Wallet

Download the Pi Wallet app through the Pi Browser on iOS or Android.

Step 2: Switch to Testnet Mode

Select the Testnet environment within the wallet. This ensures all actions remain separate from Mainnet balances.

Step 3: Open the Tokens Tab

The Tokens tab is the main hub for DEX activity. It includes:

• My Tokens: Tokens you have enabled
• More Tokens: Tokens available to enable
• My Liquidity Pools: Pools you participate in
• More Liquidity Pools: All available pools

A search function helps locate specific tokens or pools.

Step 4: Manage Tokens

Use the manage tokens page to enable or disable tokens. Enabling a token requires a small Test-Pi transaction fee. Enabled tokens become available for swaps, transfers, and liquidity pools.

Step 5: Trade or Provide Liquidity

Users can:

• Swap tokens through the AMM
• Place custom-priced orders through the DEX interface
• Send tokens to other wallets
• Deposit token pairs into liquidity pools
• Create new pools if a trading pair does not exist

Liquidity providers earn fees proportional to their contribution.

Step 6: Acquire Test-Pi

Test-Pi can be obtained through Testnet faucets or Testnet mining. It is used only for experimentation.

All Testnet actions are non-financial and intended for testing and feedback.

Conclusion

Pi DEX on Testnet provides a controlled environment for decentralized trading, liquidity management, and token experimentation. Through its AMM design, integrated wallet tools, and staged protocol upgrades, the system allows users and developers to test DeFi mechanics without financial exposure. 

As Pi Network continues to expand its offerings in its Open Mainnet, the Testnet DEX serves as a technical and educational foundation for future on-chain activity.

Sources:

• Pi Network Blog: Announcing Pi DEX, AMM Liquidity pools and more
• Pi Network YouTube: Pi Testnet Walkthrough for PI DEX