Ethereum-DeFi: The Top 5 Decentralized Exchanges (DEX)
Tags: Dex, Ethereum, Cryptocurrency, Defi, Eth

Ethereum-DeFi: The Top 5 Decentralized Exchanges (DEX)

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Recently, more and more decentralized exchange (DEX) tokens have come onto the market. But what are currently the largest DEX tokens? The five largest decentralized exchange tokens are examined below.

In addition, the popularity of decentralized exchanges has increased dramatically in the last few months. Uniswap even overtook Coinbase in September, recording a trading volume of $ 15 billion .

The main advantage of a DEX is that it does not have a central intermediary. As a result, you no longer have to hand over your assets to a central exchange, but remain in control of your cryptocurrencies. In addition, various coins can be listed on a DEX without much effort. In addition, users have more privacy, less market manipulation, sometimes better liquidity and often an accessible user interface.

However, for some trading pairs, the decentralized exchanges need to improve the depth of liquidity, accelerate the speed of order execution, and lower the fees. Even if the trading volume on the decentralized exchange decreased in October, a clear trend of steady growth can be seen.

5. SushiSwap (SUSHI): Market capitalization $ 67 million

SushiSwap is a fork of the Uniswap protocol . The SUSHI token grants the holder control over the decentralized exchange protocol and pays part of the collected trading fees plus the SUSHI token to the liquidity providers.

In addition, for the governance of the protocol, SUSHI token holders can submit a SushiSwap improvement proposal (SIP), which the community can vote on with SUSHI tokens.

The aim of SushiSwap is to be a further development of Uniswap. But after Uniswap has distributed its UNI token , the two DEXs are even more similar than before.

The main difference is that some key parameters such as trading fees and the amount of payouts to liquidity providers are different. SushiSwap strives for a fairer distribution of profits and also wants to give smaller investors the opportunity to provide profitable liquidity.

4. Kyber Network (KNC): Market capitalization $ 185 million

The Kyber network is an “older” DEX. The first testnet was launched in May 2017. In addition, the project was able to collect almost 60 million US dollars in an Initial Coin Offering (ICO) in 2017 .

The Kyber network allows users to use a decentralized exchange that deals with everything on the blockchain and uses a reserve system instead of an order book. This means that DEX can guarantee a high level of liquidity at all times. In addition, this system enables any exchange of Ethereum tokens and even cross-exchanges.

As soon as the Kyber network is fully functional, users should be able to send any ERC-20 token and have it converted into another Ethereum token before it ends up in the recipient’s wallet. This is useful not only for individuals but especially for businesses.

Because this would also allow merchants to accept any crypto currency. Merchants can set which currency they want to be rewarded with and users can pay with any ERC-20 token, as this is automatically converted.

With the help of the KNC token , investors have the opportunity to receive part of the collected fees for voting on key parameters of the Kyber network. This means that you can already generate passive income today by staking the KNC token.

3. Loopring (LRC): Market capitalization $ 202 million

Loopring is a decentralized exchange protocol that is created to allow users to exchange assets between different exchanges. In addition, the project differs from other DEXs because, in short, it enables anyone to develop a decentralized exchange on Ethereum.

Instead of simply acting as a more decentralized exchange, Loopring tries to aggregate orders from different exchanges. This is intended to give users the cheapest conditions for trading tokens and coins.

Loopring also wants to enable centralized exchanges to participate in the Loopring network. Centralized exchanges are intended to have access to increased liquidity from a large number of DEXs and different blockchain networks.

Loopring is therefore independent of a specific blockchain and every smart contract platform should be able to integrate into Loopring in the future. In the future, STOs should also be compatible with the Loopring DEX . At the moment only NEO and Ethereum are supported.

LRC is the token used in the Loopring protocol to receive a percentage of all fees from the exchanges that build on Loopring. 70 percent of the fees are paid to the stakers, 20 percent are used to finance the loop ring DAO . The remaining 10 percent is burned.

2. 0x (ZRX): Market Cap $ 276 million

0x is a DEX created for trading assets and cryptocurrencies through the use of smart contracts. Similar to other DEXs, 0x should enable the arbitrary exchange of Ethereum tokens and also make other assets decentralized tradable.

The ZRX token of the 0x protocol fulfills two main functions. The first function is that fees are paid to the so-called “Relayers” (liquidity providers) — those who enable a decentralized exchange of cryptocurrencies with the 0x protocol.

The second use case is for the governance of the protocol. ZRX investors have complete control over what happens to the 0x protocol over time.

1. Uniswap (UNI) — Market capitalization $ 606 million

Uniswap is by far the largest decentralized exchange in the world and overshadows all others with its trading volume. The DEX enables everyone to list and trade ERC-20 tokens on the exchange without any hurdles and convinces with an excellent UI / UX, high liquidity and low fees.

In addition, liquidity providers and users of the platform were only recently rewarded with UNI tokens worth several thousand US dollars. This created an enormous hype about the UNI token and it was catapulted directly into the top 35 coins.

The governance token gives Hodlern a say in the further protocol development of Uniswap. In addition, users can provide liquidity for trading pairs in so-called liquidity pools in order to earn a percentage of the trading fees. In addition, liquidity providers can earn UNI tokens in special liquidity pools.

Uniswap is the largest DEX to date. It remains to be seen whether the exchange can stay at the top in the highly competitive DeFi industry.

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