16 Decentralized Exchanges

July 31, 2023

Safe Choices for Decentralized Exchanges

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DEX trading volume is booming!

Last 7 days, it exceeded $11B. Since everyone is following the rule “There’s no safe CEX (centralized exchange) in crypto.”

Here’s everything you need to know:

What is it?

Decentralized Exchanges (DEXs) provides peer-to-peer trading solutions, to ensure financial sovereignty, privacy, and open access. We previously wrote about Decentralized Finance (DeFis), read more about it here.

Unlike centralized exchanges (CEXs),

CEXs operate as a single entity and maintain control over users' funds. 

DEXs are built on a blockchain network and use smart contracts to execute trades directly between buyers and sellers.

Three types of DEXs:

Automated Market Maker (AMM) DEX

Uses a liquidity pool model, where users can provide liquidity to a pool and earn fees in exchange for adding liquidity (e.g., Uniswap, Pancakeswap).

Order Book-Based DEXs

When a buyer and seller agree on a price, the trade is executed through a smart contract (e.g., IDEX, Kyber Network).

Order Book-Based DEXs

When a buyer and seller agree on a price, the trade is executed through a smart contract (e.g., IDEX, Kyber Network).

Let's dive into DEXs landscape of these 16 products:

1. Uniswap (@Uniswap)

Uniswap is one of the pioneers of DEXs. It's simple, intuitive interface and liquidity provision features make it a cornerstone of the Ethereum DeFi ecosystem.

2. PancakeSwap V3 (@PancakeSwap)

The latest version of PancakeSwap offers improved trading features and new farming opportunities. Its lottery system and NFT trading platform make it a comprehensive DeFi playground on Binance Smart Chain.

3. SushiSwap (@SushiSwap)

SushiSwap needs no introduction. As one of the leading DEXs, it offers swapping, staking, and yield farming opportunities. With its multi-chain support, SushiSwap is a reliable platform for all kinds of traders.

4. Curve (@CurveFinance)

Curve specializes in stablecoin swaps. With its low slippage and low fee model, it has become a go-to platform for many traders dealing with stablecoins.

5. DODO (@BreederDodo)

DODO offers a unique Proactive Market Maker (PMM) algorithm, providing sufficient liquidity and better spreads for traders. It also allows users to create their own liquidity pools with just one token.

6. Balancer (@BalancerLabs)

Balancer operates as an automated portfolio manager, liquidity provider, and price sensor. It allows users to create or add liquidity to customizable pools with flexible token ratios.

7. QuickSwap (@QuickswapDEX)

Built on the Polygon network, QuickSwap offers lightning-fast, low-cost transactions. Its user-friendly interface and diverse range of supported tokens make it a favourite amongst DEX users.

8. Trader Joe (@traderjoe_xyz)

As a multi-functional DEX, Trader Joe offers more than just a trading platform. It includes yield farming, lending, and borrowing services, catering to a wide range of DeFi users. Its user-friendly interface is a major draw, especially for new traders.

9. MtopSwap (@MtopSwap)

MtopSwap offers a powerful trading platform with advanced features like flash loans, limit orders, and arbitrage opportunities. It is also known for its competitive gas fee structure.

10. GMX (@GMX_IO)

GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades. Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees and leverage trading.

11. SpookySwap (@SpookySwap)

SpookySwap, one of the leading DEXs on the Fantom network, offers a spooky-good trading experience. Users can swap, stake, and yield farm with eerie ease on this platform. Different from other DEXs, they use BOO token as a governance token, diverse farms, grants to encourage a healthy ecology of other Fantom projects, and user-centered service.

12. DYDX (@dydx)

Building and democratizing the future of decentralized finance, dYdX is the world's leading decentralized platform for margin and perpetual trading. With dYdX, users can earn interest on their crypto, margin trade with custom leverage, and trade perpetuals on Layer 2 with zero gas costs.

13. Kine Protocol (@KineProtocol)

KINE provides a [peer-to-pool] derivative market, where a liquidity pool backed by on-chain digital assets serves as the passive counter-party of all traders on the exchange. It provides traders with 0-slippage execution, guaranteed liquidity, up to 100x leverage with cross margining.

14. Apex Official (@OfficialApeXdex)

ApeX is a decentralized and non-custodial derivatives protocol that facilitates the creation of perpetual swap markets for any token pair. The protocol operates through a series of immutable and persistent smart contracts on the Ethereum blockchain, where users are free to trade directly without intermediaries.

15. Perpetual Protocol (@perpprotocol)

Perpetual Protocol is a decentralized exchange (DEX) for trading perpetual futures — V1 was initially launched on Ethereum scaling solution xDai, while V2 launched on Ethereum layer-2 (L2) scaling solution Optimism. The exchange also plans to add other EVM-compatible blockchains in the near future.

16. Maverick Protocol (@mavprotocol)

DeFi infrastructure built to bring high capital efficiency and greater capital control to the liquidity market, powered by Maverick AMM.

Smoothie’s Key Takeaway:

In contrast with CEXs, DEXs champion decentralization and the ethos of blockchain by offering peer-to-peer trades without the need for intermediaries.

They provide users with control over their own assets, improved privacy, and the ability to participate in the platform's governance.


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