The crypto industry has grown into a comprehensive suite of financial services, including both centralized and decentralized products. Crypto natives can now buy digital assets on centralized or decentralized exchanges, unlike in the past. Following the introduction of Decentralized Finance (Defi) protocols based on smart contracts, the latter gained popularity.
DEXs accounted for about $1 trillion in global crypto market trading volume in 2021, according to statistics from The Block Research. More crucially, DEXs are preferred by most “crypto whales” and veterans over CEXs.
Several decentralized exchanges (DEXs) have been built in the last two years, but some have emerged as superior ecosystems. This is due to various variables, including differences in the underlying technology, tokenomics, and network incentives. We’ll go through five of the most popular DEXs in this article, which every crypto investor should know.
SOMA.finance is the first multi-asset DEX to offer tokenized assets backed by various financial instruments, including cryptocurrencies, stocks, ETFs, STOs, and NFTs. The initiative has teamed with Tritaurian Capital, a U.S. licensed broker, to enable crypto innovators to issue tokenized assets while providing merchants with a secure ecosystem with regulator approval.
The OraiDEX is a multi-chain interoperable platform where crypto users may swap various digital assets. It is built on the Oraichain AI-powered blockchain ecosystem. In March 2022, the CosmWasm smart contract DEX was published, coupled with a meta-staking tool that allows ORAI token holders to delegate their tokens to the Oraichain mainnet. They can stake the native ORAIX token on OraiDEX.
ORAI, ATOM, OSMO, AIRI, KWT, and LUNA token holders will be eligible for a fair drop scheme, according to OraiDEX.
PancakeSwap is a BNB chain crypto exchange that supports BEP-20 cryptocurrencies and is now the second-largest DEX in trading volumes. The platform’s infrastructure is based on the Automated Market Maker (AMM) paradigm, which allows crypto users to trade BNB native tokens without the usage of a centralized limit order book. Trust wallet, BNB chain wallet, and the Coinbase wallet are among the wallets compatible with this DEX.
Fluid, unlike its competitors, is a liquidity aggregator that uses AI and quantitative algorithms. This DEX aggregator addresses the problem of fragmented liquidity in the crypto ecosystem by matching orders with the best prices, lowering DEX trading latency. Ex-bankers from Goldman Sachs and Bank of America have supported the idea.
Ardana is the Cardano ecosystem’s first stable coin hub, including an on-chain asset-backed stable coin technology and the Danaswap DEX. Cardano users can mint the native Ardana dollar (dUSD) stable coin, which is overcollateralized by Cardano native assets, including the ADA token, at its core. Ardana users can deposit their ADA tokens and obtain dUSD cash to spend on the Cardano network.
Cryptocurrencies are no longer a fledgling market, as stated in the introduction. This industry has shown to be a worthy challenger to traditional finance during its ten-year existence. The ecosystem will be propelled to new heights by the diversity of decentralized exchanges (DEXs), ushering in an era in which investors will no longer need to go via centralized middlemen to gain exposure to the latest financial instruments.