Top 3 Decentralized Exchanges
Decentralized Exchanges (Dexes) are protocols that enable users to swap / trade cryptos without the need for KYC (Know Your Customer) processes.
Decentralized Exchanges (Dexes) are protocols that enable users to swap / trade cryptos without the need for KYC (Know Your Customer) processes.
The most important Dexes are:
Uniswap (UNI)
Curve (CRV)
PancakeSwap (CAKE)
1. Uniswap (UNI)
Uniswap (UNI) is a decentralized protocol for automated liquidity provision on Ethereum.
One major problem with illiquid assets on regular exchanges is "high spreads". Uniswap solves this problem by enabling everyone to become a market maker.
UNI holders collectively control:
Uniswap governance
UNI community treasury
The protocol fee switch
Uniswap.eth ENS name
Uniswap Default List (tokens.uniswap.eth)
SOCKS liquidity tokens
Uniswap suffers from high slippage for large orders because the price paid increases with the increase in the quantity.
Website: https://uniswap.org
Token Terminal: https://tokenterminal.com/terminal/projects/uniswap
DeFiLlama: https://defillama.com/protocol/uniswap
CoinMarketCap: https://coinmarketcap.com/currencies/uniswap
2. Curve (CRV)
Curve (CRV) is a decentralized exchange liquidity pool on Ethereum. It is specially designed for:
extremely efficient, low-slippage stablecoin trading, and
low risk, fee income for liquidity providers.
Slippage is the difference between the expected price of a trade and the price at which the trade is executed.
The fees and other parameters are decided by the Curve Decentralised Autonomous Organization (DAO). The fee on all the pools is 0.04%. Half of the fee goes to the liquidity providers and the other half to the members of the DAO.
Website: https://curve.fi
Token Terminal: https://tokenterminal.com/terminal/projects/curve
DeFiLlama: https://defillama.com/protocol/curve
CoinMarketCap: https://coinmarketcap.com/currencies/curve-dao-token
3. PancakeSwap (CAKE)
PancakeSwap is a popular decentralized exchange (DEX) on the Binance Smart Chain. It is an automated market maker (AMM). Consider it to be the Uniswap of the Binance world.
You can use it to trade BEP-20 tokens without a centralized exchange and while keeping control of your private key. You must have heard about ERC-20 tokens which are fungible tokens on the Ethereum blockchain. BEP-20 tokens are fungible tokens on the Binance blockchain.
The native crypto of PancakeSwap is CAKE. It can be used for:
Yield farming by staking supported liquidity provider (LP) tokens,
Staking BEP-20 tokens and earning yields on "Syrup" pools,
Buying PancakeSwap Lottery tickets,
Creating Pancake Profiles and minting NFTs,
Participating in IFOs (Initial Farm Offerings) and buying tokens of new projects before their public launch,
Making governance proposals,
Voting on governance proposals,
Gambling by predicting whether the price of Binance Coin (BNB) will rise or fall in a 5-minute period.
The PancakeSwap team is anonymous, but the platform is open source and its code has been audited by respected security firms.
Website: https://pancakeswap.finance
Token Terminal: https://tokenterminal.com/terminal/projects/pancakeswap
DeFiLlama: https://defillama.com/protocol/pancakeswap
CoinMarketCap: https://coinmarketcap.com/currencies/pancakeswap