Top 5 Decentralised Exchanges In 2023
- VS
- 28 July, 2023
Introduction
Decentralized finance (DeFi) has revolutionized the world of cryptocurrencies, giving rise to numerous new crypto platforms. Among these platforms, Decentralized Exchanges (DEXs) have emerged as pivotal players, attracting crypto enthusiasts seeking to explore the world of crypto assets. DEXs offer the same functionality as traditional crypto exchanges in a decentralized manner.
Over time, a plethora of new DEX platforms have been introduced, each offering incredible features, while some have evolved into newer versions. However, with the multitude of options available, selecting the best DEX can be a daunting task. To simplify this process, we present our list of the top 5 Decentralized Exchanges in 2023, ensuring a seamless and enhanced crypto trading experience. Without further delay, let's dive in.
Uniswap - The Pioneer of AMM
One of the biggest exchanges, Uniswap, is a pioneer in the realm of DEXs, popularizing the Automated Market Maker (AMM) model. Operating on the Ethereum blockchain, Uniswap allows users to trade ERC-20 tokens without needing traditional order books. Instead, liquidity providers contribute to liquidity pools.
Uniswap ensures efficient and decentralized trading, and its simplicity and user- friendliness have contributed to its widespread adoption and success. At the time of writing, the latest versions of Uniswap V3 is active on the Ethereum mainnet.
Curve - Mastering Stablecoin Trading
Another popular DEX, Curve, takes a specialized approach to cater stablecoin trading, optimizing low-slippage and low-fee trading for stablecoin pairs like DAI, USDC, and USDT. Curve was specifically designed to enhance trading efficiency in the DeFi space.
The Curve Protocol allows easy exchanging of various ERC-20 tokens while providing swap support for wrapped tokens and stablecoins.
PancakeSwap - A BSC Game-Changer
PancakeSwap has made its mark as a decentralized exchange operating on the Binance Smart Chain (BSC). PancakeSwap provides users with significantly lower transaction fees compared to Ethereum-based DEXs, allowing for cost-effective trading of any BEP- 20 tokens from anywhere in the world. At some level, PancakeSwap matches Uniswap’s functional.
Balancer - Empowering Customization
In a realm where liquidity provision can be complex, Balancer's customizable approach has attracted users seeking more diverse and flexible liquidity provisioning options. It allows users to create and manage custom liquidity pools with multiple tokens, empowering them with fine-tuned control over asset allocation.
The smart order routing system optimizes trades across multiple pools, reducing slippage. Balancer Pool tokens (BPT) represent pool shares, enabling easy asset withdrawal. It supports portfolio management, and decentralized governance via BAL tokens.
SushiSwap - Clone of Uniswap
SushiSwap, a fork of Uniswap, is a decentralized exchange (DEX) built on the Ethereum blockchain. The protocol's native token, SUSHI, plays a vital role in its governance and liquidity provision mechanism. SushiSwap's primary function is to facilitate the seamless swapping of various ERC-20 tokens, allowing users to trade assets in a peer-to-peer manner.
The platform incentivizes users to become liquidity providers by depositing tokens into liquidity pools. These pools allow users to earn rewards through trading fees and additional SUSHI tokens.
Table of Comparision
| Uniswap | Curve | Pancake | Balancer | SushiSwap | |
|---|---|---|---|---|---|
| Automated Market Maker(AMM) Model: | AMM | AMM | AMM | AMM | AMM |
| TVL | $3.17 B | $3.27 B | $1.57 B | $1.09 B | $425 M |
| Liquidity Pools | First DEX That Introduced Liquidity Pools | Non-custodial Liquidity Pools | Custodial | Non-custodial automated portfolio manager | Non-Custodial |
| Tokens | UNI | CRV | CAKE | BAL | SUSHI |
| Blockchain | Ethereum | Ethereum | BNB Chain | Ethereum | Ethereum |
| Supported Tokens | Any ERC-20 Token | Only Stablecoins | All BEP-20 Standard Tokens | ERC-20 Tokens | ERC-20 Tokens |
| Cross-Chain Support | Built UniswapX protocol for cross-chain swap | Partnered With EYWA Protocol for Crosschain Swap | Has a Crosschain Bridge Called "PancakeSwap Bridge" | Integrated BIP-308 powered by Layer Zero for cross-chain support | In-built Interface For Multi-chain Support |
| Supported Chains | 7 | 12 | 5 | 6 | 26 |
| Fees | 0.3% | 1.5% | 0.07% for the taker and 0.02% for the maker | Between 0.0001% and 10% | 0.3% |
| Slippage | 0.5% | No Price Slippage | 0.5% to 0.1% | 0.14% to 1% | 0.1% to 5% |
| Yield Farming and Incentives | One of the largest protocol that offers yield farming | Available | Users can earn CAKE rewards through farming | Incentive on Index-like Pools | Users can earn rewards via "2x Rewards Farm" |
Conclusion
To Embark on your decentralization journey, the above-mentioned platforms are the top- tier DEX platforms. While these options offer exceptional features, the rapidly evolving DeFi space introduces numerous new platforms with remarkable functionalities. However, it is advisable to opt for reputable DEX platforms when investing your hard- earned funds in the crypto space, ensuring a secure and reliable experience.