Last updated on July 5, 2022
The DEX market is constantly evolving as more traders seek out these helpful platforms to improve their results. DEXs (decentralized exchanges) remove centralization from the market. They replace these outdated systems with automated smart contracts that improve efficiency. The results are a more secure, responsive, and open trading option for users.
There has been a sharp rise in the number of DEXs in the market as of late. This growth is the direct result of numerous factors. For one, the rise of DeFi has led to more users seeking DEX-like options. Additionally, Ethereum, the world’s top Dapp network in terms of volume, has experienced considerable scalability and congestion issues. This congestion sent developers across the sector in search of lower-cost alternatives.
Today, there are DEXs on nearly all major blockchains including Ethereum, Binance Smart Chain, TRON, and many more. Unfortunately, the sudden increase in DEXs has also spurred more investor confusion. These platforms often employ new features and services which can also add to the confusion of finding a reliable platform. Here are the top DEXs to improve your trading strategy in 2022.
META Exchange
The Meta Exchange operates as a next-generation DEX on the META1 Blockchain. This protocol was built from the ground up to remove all the technical barriers associated with DEX trading. The network features an interactive interface that streamlines all major functionalities.
Additionally, the DEX supports the META1 stable coin. This coin provides a valuable safe haven to traders on the platform. Notably, the META1 stablecoin derives value from multiple gold-related assets and bullion. Impressively, it’s the first self appreciating stablecoin in the market.
The META Exchange provides near-instant trades. The protocol leverages the scalability of the META1 blockchain to provide a seamless trading experience to the market. Notably, the META Exchange is capable of trading volume on par with NASDAQ and other world-recognized stock trading platforms.
META exchange users gain access to all of their favorite projects. You can trade ETH, BTC, LTC, and many more directly from the non-custodial wallet provided to users. In this way, the META Exchange provides a new level of convenience and security to the market.
Uniswap
Uniswap is the top-performing DEX in the world at this time. Despite its lack of features, this platform has managed to become the premier DEX in the sector. Part of its success can be attributed to its pioneering efforts. Uniswap was the first DEX to provide liquidity pools for startups seeking capital.
Before Uniswap, a company needed to secure a listing deal with a CEX to gain access to the market. Sadly, this led to more congestion and gatekeepers in the sector. When Uniswap introduced its open liquidity pool policy, it altered the market forever. For the first time, anyone could seed a liquidity pool and gain instant access to global funding.
Notably, Uniswap is the largest DEX and Dapp in the Ethereum market. It was built to enable buyers and sellers to exchange ERC-20 tokens securely. Interestingly, ERC-20 was the first public token standard to hit the market. As such, it’s hugely popular. There are thousands of ERC-20 tokens in use today.
SushiSwap
SushiSwap was born out of a desire to provide the ERC-20 community with more options. SushiSwap borrows many of the top features from Uniswap and adds even more to provide more options. Notably, one of the main draws of Sushiswap is its lower fee structure. Uniswap users save on fees when they migrate to SushiSwap.
SushiSwap operates as an AMM (automated market maker). This designation means that you trade your crypto against smart contracts. This strategy provides less slippage which saves traders. Notably, SushiSwap also introduced some community governance mechanisms. This decision gave the community a say in the future developments of this platform.
This community-centric approach also shines through in the network’s fee structure. Notably, a majority of fees get paid back to users via staking and other DeFi protocols. SushiSwap provides users with multiple ways to earn a passive income with less risk. For example, you can stake SLP tokens to earn SUSHI, and then, you can stake SUSHI for xSUSHI and earn even more rewards.
PancakeSwap
PancakeSwap is Binance’s answer to Uniswap. The Binance Smart Chain is fairly new as it entered service on September 01, 2020. The DEX is very responsive as the BSC provides ultra-high performance to the platform. For comparison, Ethereum approves blocks of transactions roughly every 13-seconds. The BSC trims this time down to around 3 seconds.
The network was built to leverage the Binance Smart Chain’s advantages. This fourth-generation DeFi blockchain supports features such as staking, farming, peer-to-peer lending, and much more. The main difference between PancakeSwap and the competition is the fact that the network was built to service the BEP-20 sector. BEP-20 is Binance’s new token standard.
PancakeSwap provides access to a variety of projects not available on any other network. Notably, the platform has become very popular in a short time. Today, it’s the largest and most heavily used AMM for yield farming and staking on the BSC. It’s also the largest BSC Dapp in use today. Part of this success can be attributed to the backing of the Binance Accelerator Fund.
Curve
Curve entered the DeFi market in November 2019 with Michael Egorov as the lead developer. The DEX combines popular features and yield generating liquidity pools. Curve is unique in that it focuses on stablecoins. The DEX streamlines the conversion of assets that have a 1:1 parity with fiat currencies. Currently, the DEX supports DAI, USDC, USDT, TUSD, BUSD, PAX and sUSD
DeFi users can easily trade stablecoins leveraging the AMM features and simple interface. The network provides low fees and slippage, which makes it more cost-efficient than other popular options on this list. Additionally, there are liquidity pools available. These smart contracts enable you to secure low-risk passive income.
Curve relies on a custom token called CRV to facilitate network functions. This token serves multiple purposes including voting, staking, and smart contract executions. The combination of features that Curve brings to the table, combined with its focus on stablecoins makes this project a popular option.
SpookySwap
SpookySwap is a flexible DEX that leverages an AMM protocol to provide users access to +700 trading pools. The DEX provides users lower fees and fast transactions because it lives on the Fantom Opera network. This technical structure improves scalability but retains full EVM compatibility.
SpookySwap continues to see growing adoption. The network currently lists around $20 million in daily trading volume. One of the main draws of SpookySwap is its advanced features. The network provides options like limit orders that usually are found on CEXs. The protocol also includes options like trading charts and order history.
SpookySwap is a community governed project. Users hold the native utility token, BOO, to join in the decision-making process and development of the network. Community governance is a popular DeFi feature that ensures the community remains intact while the network expands. It also helps to keep the network flexible in terms of sudden market changes.
TraderJoe
TraderJoe provides AMM DEX features to the market with a twist. This DEX enables traders to leverage their positions. To accomplish this task, the network integrates a Peer-to-Peer lending functionality. Users can secure interest by lending out their crypto to others. The protocol prevents losses to lenders by requiring over-collateralization from the borrowers.
Users can borrow on the lending protocol and then use those funds directly on the DEX. The DEX is scalable and offers adjustable slippage. You can trade to secure returns or take advantage of the other low-risk features.
Users can also stake and farm their tokens on TraderJoe. The DEXs staking and farming features are similar with the staking option having a lock-up period and more consistent returns. The protocol also supports liquidity pools which payout 20% APR on average.
TraderJoe is a popular option as it’s a vital part of the Avalanche blockchain ecosystem. The network was among the first to launch and currently is the most popular in terms of the trading volume. The network has some other cool features like a recirculating fee structure. The 0.05% fee charged on transactions gets recirculated to stakers.
The lending portal used by TraderJoe was based on the popular P2P protocol Compound. The project gets its name from the popular Farmer Joe Meme. This light-hearted approach, coupled with the network’s features, helped TraderJoe make the list of top DEXs in 2022.
QuickSwap
QuickSwap saw instant notoriety due to many factors. For one, the DEX was founded by Ethereum contract programmers Nick Mudge and Sameep Singhania. Additionally, the DEX leverages the powerful Polygon Layer-2 scaling infrastructure to improve performance. This structure enables the DEX to provide near-zero gas fees on transactions which helps to improve ROIs.
QuickSwap lives up to its name as the DEX executes trades in seconds. This protocol operates in a non-custodial manner which helps to keep your crypto safe. Additionally, it’s private. There are no registration requirements. You link an approved wallet and you can begin trading in seconds. This approach keeps your data safe from future breaches.
There are a lot of features on this DEX that people enjoy. The liquidity mining pools provide high yields with low risk. There are also yield farming options for people seeking a more hands-on approach to yield generations. One of the most unique features of QuickSwap is its Dual Farming options. This option enables users to secure their rewards in multiple tokens. Currently, you can select to get rewarded in both MATIC and QUICK.
Things to Consider When Selecting the Right DEX in 2022
There are a couple of factors to consider when selecting the right DEX in 2022. The first step is to look at your overall trading goals. For example, are you looking to swap stablecoins to jump networks? If so, Curve may be the right option for you. However, if you are looking to build savings, a network like META 1 will provide self-appreciating assets and stability to your equation. The point is that there is no one-size-fits-all when dealing with DEXs.
The next step is to consider your trading frequency. If you are going to trade every day, multiple times a day, then you need to seek out a DEX with the lowest fees possible. Reversely, if you only trade once in a while and you desire access to familiar features like stop loss and order books, there are more expensive options that provide these services.
You should also consider what coins you want to trade. Remember, the DeFi ecosystem is compartmentalized nowadays. Multiple networks don’t communicate directly with each other. For these reasons, you will probably find that you will need to use multiple DEXs to create an all-inclusive approach to your DeFi strategy.
Don’t Be Scared of Features
When you first enter the DeFi sector all of the new terms and features can make things sound confusing. Staking, farming, and liquidity mining, are all foreign terms to the average person. They may seem confusing at first. These options are just different low-risk high yield generation systems.
Taking a few minutes to understand these options can help you to maximize your returns while reducing your chances of loss. All of these features enable you to secure passive returns without risking losing your original asset.
Try them All and Learn
One of the coolest features of DEXs is that they are open to a global audience. In most instances, you don’t need to even register. You simply connect a supported wallet and you can start trading in seconds. Consequently, it’s recommended that you give all of these DEXs a try.
Each has a similar feel but a variety of different options that you may find helpful. The main thing to remember is that not all DEXs are created equal. You will want to stick to these reputable platforms to avoid scams.