6 BEST Decentralized Exchanges
Decentralized exchanges (DEXes) are becoming increasingly popular due to the full control they give users over their funds and the reduced security risks.
Additionally, they are better equipped to protect data privacy, provide cheaper fees, and allow participation in the protocol's governance.
With over 500 crypto exchanges, choosing a DEX can be overwhelming. In this article, we will discuss the top six DEXes in 2023, starting with Uniswap, the most popular DEX, and its Automated Market Maker (AMM) model.
Uniswap:
Uniswap charges a 0.3% fee for swaps, which is split between users who supply the liquidity pools with assets. With over 8,000 tokens and 1,500 pairs, Uniswap is the most popular DEX.
Towards the end of 2022, Uniswap launched its governance token, UNITY, through an AirDrop, after operating for two years without one.
Curve Finance:
Curve Finance, another popular DEX, has a different approach to swapping between tokens with identical pegs.
Stablecoins or wrapped assets like BTC, for instance, are used to trade as directly as possible, resulting in a lower fee of 0.04% compared to Uniswap's 0.3%. Curve Finance also announced plans to launch a stablecoin known as CRV USD in 2022.
Balancer:
Balancer is an AMM DEX with a twist: pools can be composed of up to eight different cryptocurrencies in any ratio, allowing liquidity providers to choose their level of exposure to specific assets.
However, traders face higher slippage when using highly asymmetric pools. There are 80 coins and 103 trading pairs available on Balancer.
Pancake Swap:
Pancake Swap is the biggest decentralized AMM exchange on BNB Smart Chain, charging a fee of around 0.25% per transaction, of which the majority goes to liquidity providers.
It offers products like lottery prediction pools, initial farming offerings, and over 3,200 coins and 3,623 trading pairs.
DODO:
DODO, on the other hand, uses a proactive market maker algorithm to facilitate trades and mimic the behavior of centralized exchanges, solving problems such as slips.
Its smart trade trading and aggregation system find and compares various liquidity sources, providing the most competitive pricing.
Other products include mining events and crowd pooling, with eight coins and 20 trading pairs available on the exchange.
Sushi Swap:
Finally, Sushi Swap, the OG Uniswap fork, provides yield farming opportunities and various products in addition to its AMM system, including a split of 0.25% among liquidity providers and 0.05% distributed to Sushi token holders.
Conclusion, these six DEXes represent the most popular and innovative options available, with their unique approaches to trading and swapping tokens.
Choosing a DEX ultimately depends on the user's preference, asset selection, and trading goals.
However, using a trusted aggregator like CryptoQueen can help narrow down the choices and provide a good starting point for DEX trading.