Top 10 DeFi Exchanges
Decentralized finance (DeFi) has grown significantly over the past few years, opening the door for brand-new, innovative financial systems. One of these alternative methods that allow traders to exchange cryptocurrencies without the requirement for a centralized authority is DeFi exchanges.
1. Kyber
THE WHAT?
Kyber Network is a blockchain-based decentralized system that gathers liquidity and allows token trading without the use of an intermediary
Kyber Network can be linked into decentralized apps (dApps), cryptocurrency wallets, and platforms for decentralized finance (DeFi)
Holders of the protocol’s native Kyber Network Crystals (KNC) token administer it via KyberDAO, a decentralized autonomous organization (DAO)
2. Uniswap
THE WHAT?
The Uniswap protocol is a peer-to-peer mechanism for trading Ethereum blockchain coins ($ERC-20 Tokens)
The Uniswap protocol is defined by Ethereum-based smart contracts that are immutable, durable, and non-upgradable
It is intended to facilitate trades without the use of trusted intermediaries who may selectively restrict access
The Uniswap protocol is intended to be resistant to censorship, secure, and self-custodial, the code is available for everyone to read and verify
3. SushiSwap
THE WHAT?
SushiSwap is also non-custodial, which means that, unlike centralized exchanges, SushiSwap does not require possession of your tokens in order for you to swap them
Users can conduct trustless peer-to-peer transactions on SushiSwap using other users’ liquidity.
This means that new projects can simply connect to the markets they want as long as someone is prepared to offer the liquidity
4. dYdX
THE WHAT?
dYdX is unique in that it allows users to go long or short on Ether with up to 5x leverage in an unrestricted manner
Even better, dYdX offers cross-margin lending and borrowing, allowing customers to earn passive revenue while supported assets are held on the exchange
Even when capital is given on dYdX, it earns interest while being used on an active trading position
Nexus Mutual can be used to acquire smart contract covers on dYdX
dYdX provides spot markets for the easy conversion of supported assets such as Dai, USDC, and ETH
5. 0x
THE WHAT?
0x is an open-source, decentralized exchange architecture that allows tokenized assets to be traded across various blockchains
At its core, the 0x protocol is a set of safe smart contracts that permit the peer-to-peer trading of Ethereum-based assets
The protocol is an open standard and a common building block for any developer who requires exchange capabilities
In addition to externally validated smart contracts, 0x provides ecosystem-specific developer tools and open access to a pool of shared liquidity
6. IDEX
THE WHAT?
The first Hybrid Liquidity DEX, IDEX, combines a high-performance order book and matching engine with Automated Market Making (AMM)
The platform combines the best of centralized and decentralized exchanges, with traditional order book performance and functionality and AMM security and liquidity
With the capability of actual limit and stop-loss orders, IDEX enables traders to obtain the best spreads, avoid unsuccessful transactions, and easily offer liquidity
7. Balancer
THE WHAT?
Balancer is a DeFi protocol that is also described as an ‘automatic market maker’
Instead of using order books to handle trades, it swaps one asset for another using user-created liquidity pools
The Balancer ($BAL) token allows users to assist govern the network
8. Dex.ag
THE WHAT?
Dex.ag is a DEX aggregator that searches 11 different DEXs for the best price on your deal
It’s free to use, mobile-friendly, and offers a large range of tokens
Dex.ag’s X Blaster feature divides huge orders into smaller ones and distributes them among multiple exchanges to prevent price slippage
9. Airswap
THE WHAT?
Airswap is a platform for peer-to-peer Ethereum token trading, which means that users swap their tokens with one another
The platform is decentralized since Airswap does not control the funds of its customers, and trading is done using smart contracts
The Airswap platform operates by users communicating with one another about which tokens they wish to trade and at what price
When both parties are ready to proceed with the exchange, the Swap Protocol, an Ethereum smart contract, performs the transaction
10. Totle
THE WHAT?
Totle is linked to the most prominent decentralized exchanges and synthetic asset providers
When you perform a swap with Totle, your order is routed to the sources with the best market rates
Totle is a non-custodial smart-order routing software that offers API access to DeFi liquidity pools
Their clever splitting algorithm divides large orders among pools in order to acquire the optimum execution price in a single order
REFERENCE
DISCLOSURE:
None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.
Please note that the tech industry evolves rapidly and the info in this article is correct at the time of publishing. As Heraclitus said, “Change is the only constant,” so if anything sounds old or off, please holler on the socials or comment here so everyone stays peeled.
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