With many decentralized exchanges amongst us, it’s really important to choose the right exchange to trade your cryptocurrency, tokens, and NFTs. Know your top 10 decentralized exchanges that will do well in 2023 now!
A Decentralized Exchange and Its Working
A decentralized exchange, often shortened to DEX is a virtual space on Web3 where Web3 users buy, sell, or trade crypto tokens for an equivalent value as stated in the market.
Many decentralized exchanges use an ‘Order Book’ and ‘Liquidity Pool’ while Smart Contracts monitor the execution. All transactions occurring on the decentralized exchange get recorded on a blockchain network.
In the Order Book, one finds different requests and orders put by the user, i.e., whenever a user requests an exchange of cryptocurrency (to another crypto token) or an order to buy an NFT, the request or the order gets published.
The request is now available for everyone to see. One can find a suitable party for the said exchange.
So, suppose you requested a change from XYZ amount MATIC to ABC amount ETH, then there are two things you can do about the exchange.
Either you find a party who would want to trade, in which case you can contact them and initiate the transaction. Or, you may have to submit an order for the network to see and wait for someone to initiate the transfer of MATIC & ETH.
As the transfer occurs, the blockchain records the transaction details. Meanwhile, the miner/validator/node operator receives their incentive from the transaction fees.
The liquidity pool is where the tokens are staked for a long time, and investors gain interest in the staked pool. The transaction fees also serve as the interest amount for the staked capital.
Thus, a DEX is a secure system to exchange your currency and buy NFTs if it serves as an NFT marketplace.
So, let’s go through a list of 10 decentralized exchanges that will do well in 2023.
TOP 10 Decentralized Exchanges in 2023
Uniswap Protocol
Uniswap Website | Native Token: UNI
Uniswap is a revolutionary crypto trading protocol that went live on November 2018. This protocol aims to ease the exchange process of crypto tokens and currencies by connecting the MetaMask account.
It allows users to swap and trade ERC20 tokens without an Order Book. Also, starting November 2022, you can trade your NFTs too!
Uniswap uses liquidity pools and smart contracts instead of an Order Book to create assets necessary for the swap to occur. Users who stake their crypto into the pool get rewards, when assets from the pool get utilized.
The Uniswap Protocol aims to have a completely decentralized exchange experience for all users while ensuring security. The employment of immutable smart contracts for trade and storing transaction data on blockchains.
The Governance Portal is present within the forum for users to build an open, transparent, user-friendly decentral exchange. An Uniswap Interface for proposal submissions, an Uniswap Governance portal that allows for an open discussion about proposals posted, and a Sybil portal that shows the status and statistics of various proposals voted/canceled/defeated. The Sybil Portal shows stats on other governance types too.
Pancake Swap
Pancake Swap website | Native Token: CAKE
Currently, it has over 1.8 million users and over 55 million trades. With over $6.1 billion worth of stake. That’s how popular Pancake Swap is!
This sweet-swapping DEX is one of the most popular DEX platforms working on the Binance Smart Chain and records more than $300m in daily trading volume.
Sweet Pancakes to all of us because this DApp provides us with graphs of over 20+ blockchains and 30+ tokens while trading and provides you with other investing options.
You can invest and earn by participating in pools and farms. You can win crypto tokens too at their trading competition or lottery.
But more importantly, you can invest your cryptocurrencies in NFTs at their NFT marketplace available. You can either obtainNFTs either from collections or from the listed section present.
Sushi Swap
Sushi Swap Website | Native Token: SUSHI
For a fork Unicorn DEX, Sushi Swap is a modern, Sushi-themed version with a lot in common with Uniswap. This AMM-based decentralized exchange allows users to participate in liquidity pools, like other DEXs. In turn, users get returns on their stake.
Sushi Swap permits traders to exchange tokens across many layer-2 protocols, DAOs, and blockchains. It’s also popular as a pioneer to introduce blockchains and allow transfers across Avalanche, Fantom, Harmony, & Celo blockchains.
Apart from being a DEX, the open-transparent crypto exchange offers other DeFi services such as on-chain lending, yield pools to invest, and much more.
The native token SUSHI gets utilized as a pass toward the governance. Further, one can stake their SUSHI tokens to earn a fraction of trading fees.
Open Ocean
Open Ocean Website | Native Token: OOE
One of the top DEX operating units is known to web3 operators. It’s a cusp of a token market and a token exchange. The Open Ocean protocol allows for crypto token trading from almost 15+ blockchains and more than 20+ tokens.
While you’re ready to swap your tokens within the DEX ecosystem, the market graphs and tools show you exactly how the market functions in real time. Thus, providing you with insights into the crypto trade.
It also shows you a route of trade. The trade route is basically how the exchange or swap occurs. So suppose we exchange GMT for some USDC (a stablecoin), then we’d notice that the route taken is via Pancake V3.
But, supposedly, you chose to exchange your GMT for some APX, then it would show you a route from USDT via BUSD, and lastly, APX.
The Open Ocean protocol also shows you a list of competing swapping DEXs for cryptocurrencies and digital tokens. One doesn’t have to pay additional protocol transaction fees in the system, just the gas fees required by the blockchain to store your transaction records.
Bisq
Bisq Website | Native Token: BSQ
Bisq, like most DEXs, is a peer-to-peer network. This DEX allows you to buy, sell and trade cryptocurrencies in a private and secure environment. The open-source, decentralized application lets anyone work through their desktop.
Moreover, registration of users is not necessary to access the DEX site. You can connect your digital wallet and begin your DeFi journey with Bisq.
In addition, Bisq comes with features such as No Identity Verification, Decentralization, Private, Open, Safe, and Easy to Use,
While your trading takes place in a p2p global network, there’s no need for you to verify your ID with the central authority because there is none!
And, all your funds are safe in a wallet with 2-3 multisig that encourages security and safety. This occurs parallelly with the fact that your data is being stored in a local server within a Bisq node. The Bisq DAO is a governance platform that takes decisions for the DEX.
Honey Swap
Honey Swap Website |Native Token: HNY
Honey Swap is just another good ol’ DEX that serves you as a haven to exchange or swap your cryptocurrencies.
This platform provides a means of exchange through a multi-token model to manage liquidity pool contracts. The contracts deploy onto multiple EVM-compatible chains. All these chains share a common frontend interface that maintains the blockchain of exchanges.
Consequently, the frontend interface is under the jurisdiction of the 1Hive community that governs the consensus and functioning of the DEX.
Moreover, the ease of functioning in the decentralized exchange by simply connecting the MetaMask wallet and the presence of a Gnosis Bridge makes trading as sweet as Honey!
Participating in the liquidity pool provides you with an option to invest and a chance to gain HONEY tokens which you can utilize within the 1Hive community.
In addition, it also provides Yield Farming and Liquidity Pools like many DEXs for one to participate and invest. However, a commission of 1.3% occurs for a value above $540 at the time of writing. One even has to verify ID for a value above $1080.
Curve
The Curve Website | Native Token: CRV
Michael Egorov, the founder of Curve network published the documentation for Curve as an effective method to create a means of swapping stablecoins.
Thus, the Curve DEX is a specialized decentralized exchange for trading between stablecoins and tokenized stablecoins.
Further, the DEX provides a means of having a lower commission and higher exchange value.
The Curve Finance follows an AMM-DEX pattern. It consists of liquidity pool protocols to stake assets and smart contracts to make the transactions possible.
Consequently, smart contracts are known to have two or more assets in the same parts. This aids users in exchanging their stablecoins with a simple Web3 interface and wallet.
dYdX
dYdX Website | Native Token: DYDX
dYdX is one of the few decentralized exchanges that run their operations and store transactions on a layer-2 system.
The transactions occurring on the blockchain later publish the ZK proofs regularly to an Ethereum smart contract to prove the validity of L2 transfers.
Consequently, funds and assets get transferred to the smart contract before the exchange occurs.
Further, an advantage of the decentralized exchange is higher throughput and minimum orders compared to other DEXs settling with Ethereum in L1. All of this is within a decentralized environment that doesn’t process transaction fees.
MDEX
MDEX website | Native Token: MDX
The MDEX exchange is a platform for crypto enthusiasts and traders alike. The decentralized exchange vows on holding risk-free assets as you trade your crypto tokens on the platform.
Consequently, this one-of-a-kind platform supports cross-chain transaction protocols between BSC, ETH, & HECO due to cross-platform bridges. The platform intricately aggregates different features to create a composite DEX habitat for better performance.
MDEX is a one-stop place where one can swap their tokens, have their IMOs, and DAOs, and reach out for liquidity services.
Burger Swap
Burger Swap Website | Native Token: BURGER
Burger Swap is built on Binance Smart Chain. It aims to reduce transaction costs and gas fees as DEXs built on Ethereum.
However, Burger Swap is similar to Curve in its functioning. It’s an AMM-DEX that runs on liquidity pools. And these liquidity pools return BURGER tokens as rewards to users in the platform.
Alternatively, one could swap their BNB tokens in the forum for some BURGER tokens to perform transactions.
Users are provided with multiple features such as adjusting slippage of the trade, Liquidity pools, on-chain lending, governance rewards, and much more!
The BSC-based DEX allows for faster transactions that take about 3 seconds per block and transaction fees as low as 1 cent, making it a better choice amongst many DEXs present in the market.
Summary
And there we have it! A list of top 10 decentralized exchanges for 2023! If you liked this post, make sure to check out the Top 10 cryptocurrencies you can invest in!
Want to build your own decentralized exchange? Contact us today and get started!
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