The top DEXs provide all users with a convenient way to exchange their holdings by eliminating intermediaries to facilitate their crypto transactions. Here are the reviews of the world’s top decentralized exchanges that might be helpful for you.
1. Defi Swap
One of the most popular and highly recognized decentralized exchanges is the Defi swap. Defi swap eliminates the need for third-party by requiring buyers and sellers to exchange their holdings directly with the other traders or market participants. It hosts automatic liquidity pools, known for operating through the contracts on Binance Smart Chain.
With automated liquidity pools, there is no need for the other party to start the trade because the automated liquidity pools directly provide the buyers with coin liquidity. Defi Swap delivers these options to the users through its native token, Defi Coin (DEFC). Defi Swap provides users with access to liquidity pools, locks in your assets, and enables you to earn interest with the help of Defi coin rewards.
DEFC also promotes long-term holding because a 10% tax is applicable if you sell or swap your DEFC holdings. Although 50% of the collected tax is distributed among the existing coin holders of Defi Swap, the remaining 50% is redistributed to the liquidity pools. Therefore, we can conclude that Defi Swap is a multi-purpose chain exchange that provides its users or traders with exceptional interest-earning opportunities.
- It enables you to swap and exchange 50+ cryptos.
- It features automated liquidity pools.
- The Defi Swap application is also launching soon.
- You can hold a native token (DEFC) for a passive income.
- It doesn’t have any applications currently.
Uniswap is a decentralized exchange that offers high trading volume. Being one of the top DEX, it has an average 24-hour trading volume of more than $4 billion. With a market share of 43%, Uniswap is considered the most prominent decentralized exchange in the market. It is an automated market maker defined in that it uses decentralized liquidity pools that are powered by small contracts.
The Uniswap protocol manages the whole process with the help of an algorithm equation. Thus the equation helps determine the swap rate of tokens that require swapping. In this process, there is also the removal of identity requirements of the users. Users can create a liquidity pool for any of the desired token pairs. Users can also maintain and govern the ecosystem through participation in Uniswap DAO, which is an advantage.
If you are looking forward to participating in the Uniswap ecosystem, you will have to hold the DEX’s native token, also known as UNI. In this decentralized exchange, you only have to pay 0.3% as the transaction charge, which is relatively low, but with that, you also have to pay a gas fee for all your applied transactions.
- It is the largest DEX per volume and market share.
- It has a relatively low fixed transaction.
- It offers plenty of DAO options to govern platforms.
- The gas fees can increase up to triple digits.
Pancakeswap is a DEX with low-cost liquidity pools. Pancakeswap is popular among crypto traders because it helps traders to execute trades automatically on its platform through smart contracts. This DEX is quite similar to Uniswap in its working, as it runs on Binance Smart Chain, enabling the users to exchange and swap assets by providing liquidity pools.
Pancakeswap features its token named CAKE, which the users and traders can use for staking, yield farming, and voting on governance protocols. Users contribute to the liquidity and are known as liquidity providers (LPs). All the users get rewards with a share of LP tokens depending on the coins those users add to the pool. To retrieve the fraction of the pool, the users must return their LP tokens to the pool.
Moreover, as a return for all this process, the liquidity providers are also given a share of transaction fees from the pools that have their fair contributions of coins. Most of this amount is reclaimed from a standard 0.25% transaction fee. In comparison or competition to other DEXs, this fee is quite competitive. Pancakeswap is easily accessible through TrustWallet, MetaMask, and WalletConnect.
- It has a meager transaction fee.
- It features liquidity pools for swapping and exchanging DeFi tokens.
- There are 50+ DeFi coins available in this DEX.
- With this DEX, you risk impermanent loss on yield farming while staking tokens.
The Curve is a DeFi crypto exchange that aids in the reduction of volatility. It is a decentralized crypto exchange that runs on the Ethereum chain. Curve also provides liquidity to the ERC tokens and wrapped versions of tickets from stablecoins to tBTC. Moreover, it is an automated market maker that enables users to practice a decentralized way of swapping and exchanging different cryptos through liquidity pools. It is more stable than any other automated market maker.
With more stability, this DEX provides users with low slippage fees and more efficient algorithms. If you make swaps on the Curve, you will only be charged a 0.04% transaction fee. This amount is distributed among liquidity providers and other token holders.
This DEX has also introduced its DAO to enable the users to participate in the platform’s governance. As long as the users hold Curve’s native digital coins, they get the right to participate in the voting through Curve DAO to manage the ecosystem. Curve DEX provides its users ease to swap approximately forty-five tokens.
- It has meager fees.
- It enables the users to swap stablecoins with low-volatility liquidity pools.
- You can also join Curve DAO with its native token, CRV.
- It is a risky DEX that has been audited a couple of times.
1inch is another well-known DEX platform that is not similar to the other decentralized exchanges and is referred to as an exchange aggregator. An exchange aggregator enables the users to exchange and swap tokens conveniently. This also explains that the platform browses through various decentralized exchanges and finds the users’ lowest cryptocurrency rates.
In addition, 1 inch provides its users with liquidity through a 1inch liquidity pool. This is an automated market maker which utilizes virtual balances to give the users the best spread options. It conducts a liquidity mining process in which the users stake their tokens and lock them up in a liquidity pool. At the end of this process, there is a reward for the users in the form of a 1INCH token, the native token of this DEX platform.
Inch coins can also be used as governance tokens enabling the users to participate and vote in the platform governance through staking the native tokens. As mentioned earlier, DEX scans all the other DEX platforms to determine the lowest costing coins in the market. This is why this platform doesn’t charge additional transaction fees.
- It provides the best swap rates by scanning the other DEX platforms.
- It supports over 40 tokens.
- The users can also participate in governing 1inch with a 1inch token.
- The 1inch coins and platform are not regulated in the US.
The Komode platform has many things including decentralized exchange, a unique blockchain, a coin that pays you interest, and a unique development blockchain with features being planned for the future.The core of this network is BarterDEX, Komodo’s decentralized exchange. DEX is the intersection between all blockchains.
Komodo is a fork or ZCash blockchain, which was forked from the king of blockchain Bitcoin, It makes Komodo a descendent of Bitcoin. The main goal of Komodo is to create a smart ecosystem that consists of diverse partnerships to skyrocket this platform in the future.
Komodo’s most important features are related to privacy, security, interoperability, and adaptability. Komodo’s security stands out through Zcash zk-snark protocols and dPoW consensus mechanism.
- Extensive development activity.
- Scores well on scalability, interoperability, and adaptability
- High security and reliable privacy
- Some issues with ledger synchronization
Bitshares exchange was created from scratch by American software developer Daniel Larrimer. BitShares exchange is not just a decentralized crypto exchange, Daniel Larrimer explained in his blog, it is a network, exchange, ledger, bank, currency, community, company, software, and a delegated proof of stake (DPoS) blockchain.
Apart from a DEX cryptocurrency exchange, BitShares users get access to a set of financial tools such as:
- Dynamic accounts
- Custom tokens
- Named accounts instead of illegible address
- A reserve pool for funding projects
Just imagine, all of these amazing features combined under the umbrella of a single DEX project.
- Impressive set of additional tools
- Part of the expanding BitShares ecosystem
- Low withdrawal and trading fees
- No KYC or customer verification
- Limited customer service
How do Decentralized Exchanges Work?
The majority of the decentralized exchanges are open source projects that are built on the Ethereum blockchain. Moreover, these exchanges use smart contracts to enable the users to perform exchanges of their desired digital assets. The DEXs are also cross-chain compatible because they aim to provide users with the maximum number of trading pairs.
Therefore, with DEXs, the users can trade the asset they like or wish to trade as there is no central authority in the whole framework. This also results in the reduction of transaction fees. Some of the DEXs platforms don’t even have any transaction fees.
Generally, decentralized exchanges are a simple way of trading and help you trade whatever asset you want. You only have to follow the steps from sending your assets to a smart contract to picking a destination wallet address, and you will be good to go. The platform will work and deposit your desired assets to your chosen address.
What to Look for in a Decentralized Exchange?
If you have decided to start trading with a decentralized exchange, you will have to look for certain things before you get started with a particular platform. You must consider trading fees, convenient usage, anonymity, trading volume/liquidity, and trading pairs.
Any platform’s trading volume or liquidity affects the amount you receive, referred to as slippage. If the trade takes more time or you have placed a large order, you might receive more or less of your desired asset if there is a change in the purchase price if the trade is taking more time, or you have placed a large order.
The top decentralized exchange mentioned above has minimal fees and many trading pairs to offer great options and convenience to the users. These DEXs are simple, easy to point to, and feature click swaps that ensure consistent trades.
DEXs have become widely popular because of their convenience and security. This is why they are pretty hyped up in the whole cryptocurrency trading community, and the top decentralized exchanges justify this hype. If you are tired of the central authority in your trading, it is time that you consider switching to decentralized trading for a better desirable experience.
We have reviewed and compared some of the top decentralized exchanges with low transaction fees, tradable tokens, and optimum performance features. But these are not the only decentralized exchanges in the market that are considerable. Some more include IDEX, Ox, Kyber Swap, WavesDEX, dYdX, and many others. You only have to choose a platform that suits you best and has the optimum performance features you are looking for in the platform.