Decentralized exchanges are the lifeblood of decentralized finance (DeFi), allocating billions of dollars worth in total value locked (TVL) into the industry.
Compared to centralized exchanges (CEXs), DEXs only account for a small percentage of the total trading volumes across margin and derivatives trading. However, they’re becoming increasingly more sophisticated with time. They provide some of the same benefits and features found within CEXs but also offer a trustless environment without third parties and some perks of their own.
In this article, we aim to provide comprehensive information on the top DEXs in 2024, covering key details about each protocol, including:
- Key features and characteristics
- Founders
- Trading fees, critical detail for on-chain trading
- Supported self-custody wallets and more
There are numerous DEXs across various chains, each offering unique capabilities, benefits, and drawbacks. Whether you’re looking to swap assets, provide liquidity, or take leveraged positions, this article will equip you with all the necessary information.
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What are Decentralized Exchanges?
Thanks to smart contracts, decentralized exchanges provide a trustless environment and peer-to-peer trading. These self-executing contracts have the terms of the agreement directly written into code. They automatically match and execute trades between users transparently and auditably on the blockchain.
DEXs give users more control over their funds as they’re not custodial platforms. Therefore, you interact with them using your wallet, allowing you to manage, store, and trade your crypto at your own will.
However, DEXs are as safe as their smart contracts.
However, bugs or exploits in the smart contracts can be targeted by malicious actors, leading to potential fund loss. To address these and other security-related concerns, most protocols nowadays audit their smart contracts and overall infrastructure with blockchain analytics firms and auditors to test and find potential threats before and after launch.
However, the risks of exploits or hacks are always present, especially on new platforms that experiment with new technologies or features that might present potential vulnerabilities due to their lack of testing.
As always, users must do their research and safeguard their assets in self-custody wallets before using a DEX.
The Best DEXs In 2024
With all of the above out of the way, let’s move on to some of the best DEXs in 2024.
The following protocols were chosen based on crucial elements and characteristics: trading volume, foundations, competitive features, fees, TVL, market capitalization, founders, and other important considerations.
Uniswap – DeFi’s Largest DEX
Uniswap (UNI) is the largest decentralized exchange by total value locked (TVL) and market capitalization.
Built on the Ethereum blockchain, Uniswap is the pioneer of the automated market maker (AMM) protocol. This protocol automates crypto transactions through algorithms that set token prices based on the ratio of assets in a given liquidity pool.
In simpler words, the AMM model quotes the prices automatically in liquidity pools, automating crypto transactions and providing liquidity across markets. This is done through the constant product formula.
Key Features of Uniswap
- The UNI token is Uniswap’s governance token, allowing holders to vote on proposals for the protocol. This token also incentivizes liquidity providers through liquidity mining, rewarding them for contributing assets to liquidity pools. A portion of UNI is also allocated to a community treasury controlled by UNI holders.
- Automated Market Maker (AMM): Uniswap’s AMM system enables trades through liquidity pools rather than order books, allowing for dynamic price adjustments based on token supply and demand.
- Liquidity Pools: Users can provide liquidity by depositing pairs of tokens, earning a share of the trading fees generated.
- Concentrated Liquidity: Introduced in Uniswap v3, this feature allows liquidity providers to concentrate their capital within specific price ranges, optimizing fee earnings.
- Flash Swaps and Range Orders: Advanced features that enable complex trading strategies and more precise liquidity provisioning.
- Cross-Chain Compatibility: Supports multiple blockchains, including Ethereum, Polygon, Optimism, Arbitrum, Celo, BNB Chain, and Avalanche, enhancing accessibility and user options
What are Uniswap’s Fees?
Following the introduction of V3, Uniswap employs a tiered fee structure. Multiple liquidity pools for each token pair, each with distinct swapping fees, are available. Liquidity providers can choose from three fee tiers: 0.05%, 0.30%, and 1%.
You can check Uniswap Docs for more information.
Who Founded Uniswap?
Uniswap was founded by Hayden Adams in 2018. He’s a former mechanical engineer at Siemens who created Uniswap as a decentralized exchange that uses automated functions and trustless smart contracts instead of intermediaries.
Which Wallets Does Uniswap Support
Supported wallets for Uniswap include MetaMask, WalletConnect, Coinbase Wallet, and others compatible with Ethereum. A perk is that many of these wallets can be connected to a hardware wallet, therefore allowing you to transfer your funds to cold storage.
You can also store UNI in a hardware wallet like Ledger or Trezor, a convenient way to store your funds offline.
dYdX – Best for Derivatives
dYdX is one of the top DEXs for derivatives, allowing users to trade perpetual futures contracts across a wide range of over 35 cryptocurrencies, including coins like BTC, ETH, and SOL.
It was built on the Ethereum blockchain and established in August 2017 by Antonio Juliano, a former engineer at Coinbase. The protocol has gone through multiple phases of development, continually enhancing its product offerings and user benefits, and even transitioned to the Ethereum layer-2 solution, Starkware, in 2022.
Key Features of dYdX
dYdX is distinguished by several core features, emphasizing decentralization and user accessibility:
- Decentralization: The platform is fully decentralized, with all components open-source, ensuring transparency and security.
- No Gas Fees: By processing information off-chain, dYdX eliminates gas fees for users.
- Low Trading Fees: The platform offers competitive fees, which is particularly advantageous for average traders. Users with monthly trading volumes below $100,000 incur no trading fees.
- Lending and Borrowing Services: dYdX provides lending and borrowing options, often under better conditions than many competitors in the market.
- Dynamic Interest Rates: The interest rates for lending on the platform are dynamic, adjusting based on the overall supply and demand in the market.
What are dYdX Fees?
Like other DEXs in this list, dYdX uses a tiered maker-taker fee structure where rates depend on the 30-day trading activity and order types. In other words, eligible traders who trade volumes over $100,000 and under $1 million within 30 days pay a maker fee of 0.020% and a taker fee of 0.050% on every trade.
Founders of dYdX?
Antonio Juliano founded dYdX in August 2017, bringing his experience as a software engineer at Coinbase, where he worked from 2014 to 2017.
Which Wallets Does dYdX Support?
dYdX supports a wide range of wallets, including some of the most popular options in the market. These include:
- MetaMask
- Coinbase Wallet
- WalletConnect
- Ledger
- Trezor
PancakeSwap – Largest DEX on BSC
PancakeSwap is a prominent decentralized exchange (DEX) that operates on the Binance Smart Chain (BSC). Launched in September 2020 by anonymous developers, PancakeSwap utilizes an automated market maker (AMM) model, enabling users to swap BEP20 tokens directly from their wallets without requiring any account registration.
The platform has garnered substantial popularity due to low costs, fast transaction processing, and a broad range of services, including yield farming, staking, crypto games, NFTs, and even a lottery program.
PancakeSwap’s ecosystem is supported by an active community of CAKE holders, who use the token to provide liquidity to pools, pay for transaction fees, participate in governance, and more.
Key Features of PancakeSwap
PancakeSwap offers many features designed to enhance the user experience and promote active engagement within the platform. These features include:
- Decentralized Trading: Users can swap tokens directly from their wallets without creating an account or registering, ensuring a seamless trading experience.
- Yield Farming and Staking: The platform allows users to earn CAKE tokens by contributing to liquidity pools or staking in Syrup Pools, providing avenues for passive income.
- Lottery and Games: PancakeSwap includes interactive features such as lotteries and prediction markets, where users can participate and potentially win prizes.
- NFT Marketplace: The platform also supports the buying, selling, and trading NFTs, allowing users to engage with the growing NFT market.
- Community Governance: Holders of the CAKE token can vote on various proposals and changes within the platform, giving the community a voice in its development.
What are PancakeSwap’s Fees?
PancakeSwap pays out 0.17% to liquidity pools in the form of a fee reward to liquidity providers. 0.0225% is sent to the PancakeSwap Treasury, and 0.0575 goes to CAKE buyback and burn.
For perpetual trading, fees depend on the chain. Both opening and closing positions are 0.08% on BSC, opBNB, and Base, and on Arbitrum, they are 0.05%. Note that you can get a 5% discount on trading fees if you pay them with CAKE.
Founders of PancakeSwap
The team behind PancakeSwap, often called “the Chefs,” remains anonymous, with little publicly disclosed information regarding their identities or backgrounds. That didn’t stop them from creating one of the best DEXs in the crypto industry.
PancakeSwap was launched on the Binance Smart Chain instead of Ethereum, taking advantage of BSC’s high throughput, scalability, and low transaction costs.
Which Wallets Does PancakeSwap Support?
PancakeSwap supports a variety of cryptocurrency wallets, enabling users to connect and interact with the platform easily. Supported wallets include:
- MetaMask
- Trust Wallet
- Binance Chain Wallet
- Coin98 Wallet
- TokenPocket
Sundae Swap – Best for Cardano
SundaeSwap is a top DEX on the Cardano blockchain. Launched in early 2022, It is one of the few Cardano-based protocols operating through an AMM model. This allows users to exchange Cardano-based tokens directly through smart contracts without relying on a centralized intermediary.
Key Features of Sundae Swap
- Decentralized Trading: Users can trade Cardano tokens directly through smart contracts without intermediaries, ensuring a seamless and secure trading experience.
- Automated Market Maker (AMM): The platform facilitates trades by using liquidity pools, allowing users to earn rewards by contributing liquidity.
- Staking and Governance: Users can stake their tokens and participate in governance decisions, influencing the platform’s future direction.
- Integration with the Cardano Ecosystem: SundaeSwap is designed to work seamlessly with other Cardano-based applications and services, enhancing its functionality within the ecosystem.
- Non-Custodial: Users retain control over their assets throughout the trading process, reinforcing the platform’s commitment to security and user autonomy.
What are Sundae Swap Fees?
SundaeSwap has a rather complex exchange fee tier, but you can find them from 1% to 0.3% and even 0.1%. Note the platform only performs trades through swap. There’s no such thing as a spot market in SundaeSwap.
Founders of SundaeSwap
SundaeSwap was co-founded by Artem Wright and Mateen Motavaf. Wright is the CEO, while Motavaf is the COO.
Which Wallets Does Sundae Swap Support?
To interact with the SundaeSwap platform, users can connect through several supported wallets, including:
- Nami Wallet
- Flint Wallet
- ccVault
- Yoroi Wallet
Related: Best Cardano (ADA) Wallets in 2024 – Top 6 Options Reviewed
SunSwap – Best for TRON
SunSwap is a decentralized exchange (DEX) operating on the TRON blockchain, designed specifically for trading TRC20 tokens.
Initially launched in 2020, SunSwap is an upgraded version of JustSwap, which SUN.io acquired in October 2021. The platform has become one of the most successful and popular blockchain projects within the TRON ecosystem, combining features such as stablecoin swapping, token mining, and self-governance.
Key Features of SunSwap
SunSwap offers a range of features that make it a versatile and user-friendly platform for trading TRC20 tokens:
- Comprehensive TRC20 Token Support: The platform supports all TRC20 tokens on the TRON blockchain, providing users with various trading options.
- Integrated Token and Stablecoin Exchange: SunSwap enhances user experience by integrating token exchange and stablecoin swap functionalities.
- Automated Market Maker (AMM) Model: SunSwap employs a proprietary algorithm-based AMM model, using a constant product mathematical formula to ensure continuous liquidity for all trading pairs.
- Governance Participation: Users can stake native tokens to gain governance rights, promoting long-term engagement and commitment to the platform’s future.
What are SunSwap’s Fees?
SunSwap charges a transaction fee of 0.3% on all trades conducted on the platform. Of this fee, 0.05% is allocated to the buyback and burning of the SUN token, a process designed to increase the token’s value over time.
Founders of SunSwap
SunSwap was created after Sun.io acquired JustSwap for rebranding.
Which Wallets Does SunSwap Support?
You can connect a TronLink wallet or use some popular options like WalletConnect, Bitget Wallet, OKX, Ledger, and more.
Osmosis – Best Cosmos DEX
Osmosis is one of the best DEXs on the Cosmos blockchain, designed to facilitate cross-chain trading and liquidity provision.
Like other protocols, it functions as an AMM, providing users with the best quotes and prices for their tokens and swaps. It uses the Inter-Blockchain Communication Protocol (IBC) to connect with over 50 different blockchains, allowing for seamless asset trading across multiple networks.
The platform’s native token, OSMO, is integral to the Osmosis ecosystem, serving as the main currency for trading and governance. Users can earn rewards by contributing liquidity to various pools and participating in governance decisions.
Key Features of Osmosis
- Cross-Chain Functionality: Leveraging IBC, Osmosis facilitates trading across multiple blockchains, enabling users to swap tokens from different networks seamlessly.
- Customizable Liquidity Pools: The platform allows users to create and manage their liquidity pools with unique parameters, including swap fees and reward incentives, providing greater flexibility and control.
- Superfluid Staking: This innovative feature lets users stake their liquidity provider (LP) tokens while still participating in liquidity pools, allowing them to earn rewards from staking and liquidity provision.
- Dynamic Fee Structures: Osmosis implements a flexible fee model that adjusts based on market conditions, helping to maintain liquidity and attract users by adapting to the trading environment.
Founders of Osmosis
Sunny Aggarwal and Josh Lee, both of whom have deep roots in the blockchain industry, co-founded Osmosis.
Aggarwal is well-known for his work on the popular Cosmos wallet, Keplr, and has been active in crypto since 2015. His expertise in decentralized technologies and community-driven projects has been instrumental in Osmosis’s growth.
With his experience in the Cosmos ecosystem, Lee has focused on enhancing interoperability and improving user experience, contributing to the platform’s development and adoption.
What are Osmosis Fees?
Osmosis charges a 0.3% fee per swap on its platform. This fee is distributed among liquidity providers, incentivizing them to contribute to the pools.
Which Wallets Does Osmosis Support?
Osmosis supports Keplr, Station, Leap, OKX Wallet, XDEFI, Cosmostation, and Crypto.com Wallet.
Curve Finance – Stablecoins
Curve (CRV) is a decentralized exchange (DEX) designed to trade stablecoins efficiently.
It’s one of the top DEXs, with over $2 billion worth of TVL (as of June 2024).
Curve has been audited multiple times, including during the protocol’s pre-launch. Several renowned firms, including ChainSecurity and QuantStamp audited it. Trail of Bits (TOB) has previously fixed bugs and vulnerabilities, reinforcing Curve’s security and operability.
Key Features of Curve
- Specialization in Stablecoins: Curve Finance provides numerous stablecoin pools for users, protecting investors from the volatility of most cryptocurrency assets.
- Automated Market Maker: The protocol uses an AMM model to determine prices based on the ratio of assets in liquidity pools rather than using traditional order books. The only difference between Curve’s AMM model and others is that Curve focuses on stablecoins.
- Unique liquidity model: Curve facilitates large trades with minimal price impact. This is achieved through its unique bonding curve algorithm, which keeps the prices of stablecoins within a narrow range.
- Interoperability: Curve is integrated into several DeFi projects, such as Yearn Finance and Synthetix, allowing users to maximize their returns through yield farming and liquidity provision.
What Are Curve’s Fees?
Curve Finance is known for its low fees. The platform charges a flat trading fee of 0.04%, significantly lower than many other DEXs.
Who Founded Curve?
Curve was founded in 2020 by Michael Egorov, who has a background in physics, cryptography, and quantum computing. He previously served as the Chief Technology Officer (CTO) of NuCypher, an encryption layer for big data platforms.
Which Wallets Does Curve Support?
Curve supports a variety of wallets, including, but not limited to:
- MetaMask
- Trust Wallet
- Ledger
- Trezor
- WalletConnect
- Coinbase Wallet
Balancer – Automated Crypto Pools
Balancer is one of the biggest DEXs in the DeFi market, offering self-balancing pools that can be customized according to the owner’s needs.
Balancer uses algorithms to manage and incentivize interactions between liquidity providers, liquidity pools, and traders.
Balancer can be viewed as the DeFi version of a traditional index fund, but it operates decentralized and permissionless; users can create their own trading pools, including up to eight different cryptocurrencies. These pools are self-balancing, meaning Balancer automatically adjusts the token supply within the pool to maintain a specific ratio.
Key Features of Balancer
- Automated Market Maker: Similar to other DEXs, Balancer operates as an AMM, enabling users to trade cryptocurrencies directly from liquidity pools without needing a traditional order book.
- Customizable Pools: Users can create custom liquidity pools with up to eight different tokens, each with customizable weights. This flexibility allows for various asset management strategies and portfolio allocations.
- Liquidity Providers (LPs): LPs can contribute to existing pools or create new ones, earning a portion of the trading fees generated by the pool. These fees are distributed proportionally to their share of the pool.
- Smart Order Routing: Balancer uses smart order routing to find the best prices across multiple pools, optimizing trades for users and ensuring efficient use of liquidity.
- BAL token holders participate in the protocol’s governance, proposing and voting on changes and upgrades. This decentralized governance model ensures the community has a say in the protocol’s development.
- Balancer Smart Pools: These are special types of pools that allow for dynamic changes in parameters such as token weights, fees, and more, offering advanced use cases like automated portfolio management and liquidity bootstrapping.
- Liquidity Mining: Balancer incentivizes liquidity providers through a liquidity mining program, distributing BAL tokens to participants based on their contributions to the protocol’s liquidity.
What are Balancer’s Fees?
In Balancer, pool fees are determined by the owner, allowing them to set different fees for various pairs, ranging from 0.0001% to 10%. The pool detail page in the user interface provides information on the pool type and fee management.
Note that fees influence the determination of the optimal price when using the Smart Order Router, a tool designed for developers. Likewise, some pools use Dynamic Trade Fees, which Gauntlet algorithmically sets.
Who Founded Balancer?
Fernando Martinelli and Mike McDonald founded Balancer.
Balancer Labs, a technology company specializing in blockchain-based products, oversees the development of the Balancer Protocol. Both founders have a significant background in building and developing successful companies within the blockchain space.
Which Wallets Does Balancer Support
Balancer supports MetaMask, Coinbase Wallet, and WalletConnect, which means you can use all of the wallets available in WalletConnect to interact with the DEX.
Raydium Swap – Solana Largest DEX
Raydium (RAY) is the largest Solana-based decentralized exchange dominating the market with a TVL often north of $950M. The protocol competes closely with Jupiter regarding trading volume, often alternating in daily performance.
The platform offers token swaps, liquidity provision, and yield farming using an automated market maker (AMM) algorithm. Additionally, Raydium’s Acceleraytor serves as a launchpad for initial DEX offerings (IDOs) of new Solana projects.
A significant feature of Raydium is the OpenBook, which combines Raydium’s AMM with an order book model. However, it should be noted that Raydium’s AMM is quite different from Uniswap or the general models in the market today.
Concentrated Liquidity Market Maker (CLMM) allows Raydium’s liquidity providers to select a specific price range at which liquidity is most active for trades within a pool. This contrasts Uniswap’s constant product AMM pools, where all liquidity is spread out on a price curve from 0 to infinity.
Key Features of Raydium
- Liquidity Pools and Yield Farming: Users can contribute to liquidity pools and earn rewards. Raydium provides yield farming opportunities, allowing users to earn RAY tokens by supplying liquidity. Fusion Pools also enable users to earn tokens specific to different projects.
- Fusion pools: These pools help projects bootstrap liquidity for their tokens on Raydium and OpenBook. Some Fusion pools also offer Dual Yield, enabling users to earn RAY tokens in addition to the project’s tokens.
- Staking: Raydium supports the staking of its native token, RAY. Users who stake RAY tokens can receive additional rewards.
- Fast Transactions: Leveraging the Solana blockchain, Raydium offers high-speed and low-cost transactions, benefiting from Solana’s robust infrastructure.
What are Raydium’s Fees?
Raydium employs a detailed fee structure. A typical trading fee of 0.25% is applied for each swap in a pool. This fee is allocated to reward liquidity providers, perform RAY token buybacks, and fund the Raydium treasury.
Fees from Concentrated Liquidity Market Maker (CLMM) pool trades are automatically converted to USDC and transferred to a designated address controlled by the Squads Multi-sig to cover RPC expenses.
In CLMM pools, trading fees vary across four tiers: 100 basis points (bps), 25 bps, 5 bps, or 1 bp. Of the total fee, 84% goes to liquidity providers, 12% to RAY buybacks, and 4% to the treasury.
To create a standard AMM pool, users must pay 0.4 SOL. This fee helps prevent spam and supports the protocol’s sustainability.
Who Founded Raydium?
Raydium was founded by AlphaRay, XRay, GammaRay, and StingRay. These pseudonymous founders claim to have backgrounds in traditional finance, trading, and blockchain development. However, specific details about their previous works are not publicly disclosed due to their preference for anonymity
Which Wallets Does Raydium Support
Raydium supports a variety of wallets, including:
- Solflare
- Phantom
- OKX Wallet
- Trust Wallet
- Sollet
- Exodus
The RAY token can be stored on different hardware wallets, such as Ledger and Trezor.
Jupiter – Solana’s Most Popular DEX
Jupiter is a DEX aggregator built on the Solana blockchain, designed to provide users with the best rates for token swaps by aggregating liquidity from multiple DEXs protocols.
Jupiter facilitates token swaps with minimal slippage and low fees. It boasts a user-friendly interface suitable for both novice and experienced traders, supporting hundreds of tokens and thousands of trading pairs.
Jupiter also emphasizes developer tools, making DApp and interface integration straightforward. It offers:
- Jupiter Terminal: Enables DEXs to integrate Jupiter’s user interface.
- Payments API: Allows users to pay with any SPL token using Jupiter and SolanaPay.
- Open-Source Referral Program: Provides referral fees for projects integrating Jupiter Swap and Limit Order.
Key Features of Jupiter
- Limit Order: Allows users to place buy or sell orders at specific price levels, helping avoid slippage and secure optimal prices.
- DCA (Dollar-Cost Averaging): Allows users to buy a fixed amount of tokens within a set price range over a specified period, with flexible intervals (minutes, hours, days, weeks, or months).
- Bridge: This feature supports bridging tokens from EVM blockchains like Ethereum, BNB Chain, Arbitrum, or non-EVM blockchains like Tron to Solana, optimizing for low slippage and transaction fees.
- Perpetuals trading: Allows trading of futures contracts for supported tokens with up to 100x leverage, powered by Solana’s Pyth Network oracle.
What are Jupiter’s Fees?
Jupiter itself does not charge transaction fees but has fees for specific features. Here’s a breakdown:
- Limit Order Fees: 0.2% on taker orders. Partners integrating Jupiter Limit Order receive 0.1% referral fees, while Jupiter collects the remaining 0.1% as platform fees.
- DCA Fee: 0.1% upon order completion.
Who Founded Jupiter
The co-founder of Jupiter goes by the pseudonym Meow. Meow has appeared often in podcasts and interviews and is quite active in their social media account.
Which Wallets Does Jupiter Support
Jupiter is compatible with many reputable wallets, including those from Solana and Ethereum. Examples include:
- OKX Wallet
- Phantom
- Ethereum Wallet
- Solflare
- Coinbase Wallet
- Trust Wallet
If you’d like to learn more about Solana DEXs, see our guide on the best ones.
Aerodrome – Base’s Biggest DEX
Aerodrome Finance is a decentralized exchange (DEX) built on Coinbase’s Base blockchain, engineered to facilitate efficient token swapping with minimal slippage and low transaction fees.
The protocol employs advanced algorithms and liquidity pools designed to optimize the trading experience by reducing the difference between expected and executed trade prices, known as slippage.
The platform uses two tokens, AERO and veAERO. AERO is the native token distributed to liquidity providers, while veAERO is used for governance.
Users can lock their AERO tokens to receive veAERO, which allows them to participate in the platform’s decision-making processes.
Key Features of Aerodrome
- Minimizing Slippage: Aerodrome uses sophisticated algorithms to ensure that the executed price of a trade is as close as possible to the expected price, reducing the cost for traders.
- Low Transaction Fees: One of Aerodrome’s standout features is its commitment to maintaining rock-bottom transaction fees, making DeFi trading more accessible.
- Governance Tokens: Aerodrome offers a unique governance model where users who hold governance tokens can lock them up (vote-lock) to gain additional voting power, encouraging long-term commitment and active participation in the platform’s governance.
- Central Liquidity Hub: Aerodrome aims to be the central liquidity hub for the Base blockchain, aligning with the broader trend of DEXs playing crucial roles in DeFi ecosystems.
- Liquidity Incentives: The platform incorporates an incentive system to encourage liquidity providers to stake their assets, enhancing the DEX’s overall stability and reliability.
- User-Friendly Interface: Designed for both beginners and experienced traders, Aerodrome features an intuitive and easy-to-navigate interface.
What are Aerodrome’s Fees?
Aerodrome charges 0.2% for swaps, one of the lowest fees in the market. All revenues and fees are distributed to VELO holders and network participants.
Who Founded Aerodrome?
Aerodrome launched in August 2023 on the Base network, launched by the decentralized trading protocol Velodrom (VELO), built on Optimism (OP), one of Ethereum’s largest layer-2 solutions.
Which Wallets Does Aerodrome Support?
Aerodrome supports Browser Wallet, WalletConnect, Coinbase Wallet, and Safe. It does not support MetaMask as of June 2024.
SushiSwap – A Veteran DEX
SushiSwap is a decentralized exchange (DEX) built on Ethereum. It supports a wide range of tokens and offers users the opportunity to earn rewards through various mechanisms, such as staking and liquidity provision.
SushiSwap is praised for its simple yet versatile community-driven protocol. The protocol was initially created as a fork of Uniswap and created its own suite of DeFi products, offering features such as trading, liquidity provision, lending, staking, and advanced tools like MISO and Trident.
Key Features of SushiSwap
- SUSHI: An ERC-20 token used primarily for governance, allowing holders to vote on protocol proposals. SUSHI can also be staked to earn a share of the trading fees generated on the platform.
- Trading and Liquidity: Users can trade various tokens and provide liquidity to earn fees. The platform also supports advanced features like lending and borrowing through its Kashi protocol.
- Incentivized Pools: Known as Onsen, these pools provide additional incentives to liquidity providers in selected markets, enhancing liquidity for popular or new tokens.
- Staking: Users can stake their $SUSHI tokens at the SushiBar to earn xSUSHI, which grants them voting rights and a share of trading fees.
- MISO: A collection of smart contracts designed to help users launch new projects on SushiSwap.
- Trident: A flexible framework for building customized automated market makers.
- Furo: A tool for scheduled token distribution, incorporating features for vesting and withdrawal.
What are SushiSwap’s Fees?
SushiSwap charges a 0.3% fee for token swaps, which is divided between liquidity providers (0.25%) and SUSHI stakers (0.05%). You can refer to SushiSwap’s documentation page for more information.
Who Founded SushiSwap?
SushiSwap was founded by an anonymous developer, Chef Nomi, who later transferred control to a community governance model after a controversial exit. The current development is overseen by a team of developers and a community of users actively participating in governance and decision-making processes.
Which Wallets Does SushiSwap Support?
SushiSwap supports many cryptocurrency wallets, including MetaMask, Trust Wallet, WalletConnect, Exodus, and others compatible with Ethereum and ERC-20 tokens.
Honorable Mentions
GMX
GMX is a popular derivatives exchange operating on the Arbitrum and Avalanche blockchains. It allows users to trade various cryptocurrencies with leverage up to 50x, catering to casual and experienced traders.
A distinctive feature of GMX is its Multi-Asset Liquidity Pool (GLP), which combines stablecoins and cryptocurrencies. This pool acts as the counterparty for all trades on the platform, enabling liquidity providers to earn fees from trading activity while minimizing risks like impermanent loss.
GMX also employs Chainlink oracles for accurate pricing, ensuring that prices reflect the broader market and protecting users from liquidation during volatile periods.
1inch
1inch is a decentralized exchange (DEX) aggregator that facilitates cryptocurrency swaps across multiple decentralized platforms, offering users optimal prices and reduced transaction fees.
The platform operates using an advanced algorithm called Pathfinder, which analyzes various potential swap paths across different exchanges to ensure the best prices.
Pathfinder can split a single trade into smaller transactions across multiple DEXs, minimizing slippage —the difference between the expected and actual trade prices— by enhancing liquidity. This method helps users avoid the pitfalls of low trading volumes on individual platforms and ensures more favorable pricing.
Moreover, the platform is powered by the 1INCH token, which serves as both a utility and governance token. It enables holders to participate in the 1inch DAO and earn rewards through staking and liquidity provision.
Orca
Orca is one of the best Solana DEXs, launched in February 2021. It is designed to offer fast, low-cost cryptocurrency trading with a focus on providing a user-friendly experience, making it accessible to both beginners and seasoned traders in the decentralized finance (DeFi) space.
The platform operates on an AMM model, which uses algorithms to provide liquidity and execute trades without needing a centralized order book. It also features a concentrated liquidity model, allowing liquidity providers to allocate their assets more effectively within specific price ranges, thereby increasing capital efficiency and potentially boosting earnings from trading fees.
Leveraging the speed and low costs of the Solana blockchain, Orca offers transactions with fees as low as $0.00002 and finality within approximately one second, making it an attractive platform for cost-conscious and time-sensitive users.
Factors to Consider While Choosing a DEX
When choosing a decentralized exchange (DEX), it’s essential to consider several key factors to ensure a secure, efficient, and satisfactory trading experience.
Liquidity
Liquidity is crucial for seamless trading on a DEX. High liquidity means you can execute large trades quickly without significantly affecting the market price.
DEXs like Uniswap and PancakeSwap are known for their substantial liquidity pools, which help minimize slippage and provide a stable trading environment. Ample liquidity also indicates a healthy and trusted platform.
User Experience
The user interface and overall experience of a DEX can vary widely. Platforms like Uniswap and SushiSwap offer user-friendly interfaces catering to beginners and experienced traders.
Choosing a DEX with a straightforward and intuitive interface is important, making the trading process easier and more enjoyable. However, remember that straightforward does not necessarily mean simple or limited, as several DEXs offer advanced tools for more experienced users, such as margin trading, leverage, derivatives trading, and detailed charting tools and indicators.
Security Measures
Look for DEXs with robust security measures, including the use of well-audited smart contracts by reputable analytics and auditing companies and the ability to connect directly with hardware wallets for enhanced protection.
Some platforms also offer bug bounties to incentivize discovering and fixing vulnerabilities. However, smart contract vulnerabilities remain a major bottleneck for the sector. It’s always advisable to move your crypto assets into a hardware wallet.
Number of Supported Tokens
Check the range of tokens supported by the DEX. Leading DEXs like Uniswap support various ERC-20 tokens, while PancakeSwap focuses on BNB Chain tokens. If you have specific tokens you wish to trade, ensure they are listed on the DEX you choose. Additionally, consider how new tokens are listed and the ease of adding new assets.
Trading Fees
Trading fees can significantly impact your profitability. DEXs typically have lower fees than centralized exchanges, but these can still vary.
For example, SushiSwap charges a 0.3% fee on swaps, while others like dYdX offer different fees based on the trading pair and volume. It’s essential to review the fee structure of a DEX to understand all potential costs, including any network fees associated with transactions-
Consider liquidity, user experience, security measures, supported tokens, and trading fees to decide which decentralized exchange best meets your trading needs. Conduct thorough research and possibly test a DEX with a small trade before committing larger amounts.
Top Decentralized Exchanges (DEXs) – Conclusion
In conclusion, selecting the best decentralized exchange involves considering key factors such as liquidity, user experience, security measures, supported tokens, and trading fees.
By researching these aspects and testing a DEX with small trades, you can find a platform that meets your trading needs while providing a secure and cost-effective environment.
