Nowadays, cryptocurrencies are moving into DeFi. It’s a good option to be the one who manages your digital capital and at the same time handles every decision. That’s why it’s necessary to choose the most reliable platform with helpful conditions. So let’s observe the top 5 DEXs, currently operating, and then compare their offers and capabilities.
Uniswap
In a nutshell
Uniswap is a DEX based on the Ethereum network to swap ERC20 tokens. The third version of Uniswap was launched on 5 may 2021. The main feature – new AMM offers a possibility to swap tokens separately from the orders.
Pros
- Different AMM
Thanks to the new type of AMM – “Constant Product Market Maker Model” – it is possible to deposit any token in Uniswap by funding it with Ethereum. Only simple steps: create a new Uniswap smart contract and make a new liquidity pool with just $10 in ETH and $10 token you wish to trade.
- Free to use
You don’t need to register or pass the verification system. To access exchange transactions you should just install and connect your Ethereum wallet.
Cons
- Native token
Uniswap developed its own token – UNI. With the beginning of the crypto winter UNI fell by 83%. And probably it’s the worst result amongst DEXs native tokens.
For the last 2 months Uniswap TVL has fallen from $8,17b to $5,16b. And the indicator keeps on gradually decreasing.
Uniswap is based on Ethereum. And that’s why despite the comparatively low typical Uniswap fee (around 0,3%) there are also the network gas fees for each transaction.
For whom?
Uniswap is suitable for those who prefer farming on the Ethereum network and for those who want to pair with a rare coin. However, the native Uniswap token does not show itself as a good staking opportunity compared to some other options on the list.
Nomiswap
In a nutshell
Nomiswap is a new fast-growing DEX that has made its name with the best referral program.
The launch was in January 2022. The price of this coin immediately jumped by 95%.
Pros
- 0% commissions
Another feature is cashback. The transaction fees go back to the users as its native token – NMX. In fact, you will instantly get back up to 100% of the trading fee depending on your farming level.
- Holder bonus
Holder bonus is automatically accrued everyday in the form of additional NMX tokens to each user who is involved in personal farming, depending on its duration. Holder bonus is credited to all farmers on the basis of the funds invested.
When BTC price during the crypto winter has fallen by 69% and BNB token has dropped by 63%, NMX token has lost only 48%. Quite a promising one.
- One of the best APY on the market
Nomiswap offers excellent farming and staking performance thanks to utilitarian farming/staking and one of the best APR on the market. Thus you have increased profitability for earning passive income.
Some examples of Nomiswap APR at the time of publication:
- NMX/USDT: ~ 144%
- NMX/BNB: ~ 131%
- NMX/BUSD: ~ 144%
- Staking NMX: ~ 91%
- ETC/BUSD: ~ 34%
- BNB/USDT: ~ 18%
- ETH/BTCB: ~10%
- TVL increase
Only four months ago, TVL of Nominex Ecosystem amounted to $40M dollars, but now it is $87M dollars. There is about $8M in staking.
Whatsmore, recently Nomiswap has got into the top-5 Dexes by TVL in the BSC network ranked by DeFi Llama and confidently stays in top-40 among all DEXes by trade volume at Coinmarketcap.
- Great referral program
Nomiswap ecosystem provides an unlimited referral system with 4 referral bonuses.
Rewards for activity of your own referrals:
- Own referrals farming – you receive from 5% to 10% of the amount of NMX farmed by referrals
- Own referrals trading – you receive from 10% to 20% of any trading expenses of referrals
And rewards for activity of your whole referral structure:
- Team farming – you receive from 5% to 10% of the amount of NMX farmed by your whole team
- Team trading – you receive from 5% to 10% of the amount of trading fees paid by your whole team
- Backed by Nominex ecosystem
Nominex + Nomiswap ecosystem represents CeDeFi type. It gives you a possibility to transfer all bonuses from Nominex (centralized exchange) to Nomiswap (decentralized one) and vice versa. From November of last year, Nominex became an official Binance broker.
- Friendly interface
Developers focused on making the site interface as intuitively understandable as possible. There is no need to sign up – just connect your wallet.
- Audited by Certik
Nomiswap team has gone through CertiK’s KYC process, which means that key team members have been verified with ID and liveness checks and a cursory investigation into the project and team was carried out.
Cons
- Rapidly developing, but still middle-size
Nomiswap still only supports Binance Smart Chain and has just one Launchpool.
For whom?
Nomiswap is great for users who are looking for a profitable platform for farming, as it has the highest APR on the market for common pools. It is also one of the best options for trading as there are no commissions. And the native token is showing itself as a stable coin for long-term investment.
Pancakeswap
Jokes really matter
Based on the Uniswap model and launched in 2020, Pancakeswap has a very cute design, but also it is one of the most popular DEX. It is friendly with thousands of BEP-20 tokens.
Pros
- Suitable for active users
Pancakeswap provides functions like an array of yield farms, a Binance Coin prediction market, a lottery game, initial farm offerings, an NFT market.
Most likely users love this exchange for the many opportunities that it provides.
- Low commission
On a PancakeSwap, you will pay 0.25% commission on any trade. 0.17% returns to Liquidity Pools, 0.03% sent to the Treasury and 0.05% burn.
- Quite impressive APR
PancakeSwap offers great farming options. Pairs with the best APR are:
- CAKE/BNB: ~ 20.38%
- SDAO/BUSD: ~ 62.42%
- MIX/BUSD: ~ 55.79%
- GMI-BNB: ~ 70%
Cons
Unfortunately, since the beginning of the crypto winter, CAKE has lost 85% in value. On November 21, its cost reached $20, and now it fluctuates around $3.
- Not save enough
Pancakeswap users often complain about scams. Since it is very easy to add a new token to the platform, scams are very common on Pancakeswap, for example, those which prohibit the sale of tokens in a smart contract. Therefore, pancakeswap should be used very carefully
For whom?
This platform is literally a tasty piece of cake for confident users who already have BEP-20 tokens and who want not only to trade, but to participate in some lottery or predictions and to manage&trade NFTs as well.
Curve
In a nutshell
Curve was created as the first protocol to deal with inefficiencies in stablecoin trading – one of the basic elements of DeFi. It was launched in Jan 2020.
Pros
- Liquidity polls stability
When a user deposits their tokens into a pool, thereby supplying liquidity to it, these tokens automatically swap into several tokens, according to the needs of the pool’s equilibrium. See, to illustrate a point, you can deposit 1000 DAI and receive 500 USDT, 324 USDC, 150 TUSD and 26 DAI. These figures are never stable as people trade or deposit/withdraw funds.
- Good for stablecoins
The algorithm that is used to perform trading on the platform is designed for stablecoins. It features low commission fees and minimal price slippage.
- Multichain protocol
This exchange gives a wide range of ways to farm and trade. The platform runs on 4 blockchain networks: Ethereum, Polygon, Fantom and xDAI Chain.
- Suitable for everyone
On Curve you can connect Trezor, Ledger, Dapper and a dozen of others, while other exchanges mostly support two or three wallets.
Cons
- Hard to understand
Сurve has a really complex interface, which the developers themselves admit. In order to somehow navigate it, you need to understand very well the principles of operation of credit pools and smart contracts.
Two months ago Curve TVL was $19,85b and now it is $5,84b. The indicator had 2 gradual declines during this period.
- The native token
At the beginning of this year CRV reached its peak – $6,8, and now it’s $1, which is 85% lower.
Otherwise, CRV can be used for voting, staking and boosting.
Curve is great for users with the most demanding needs, but it comes at the cost of ease of use. Despite the large number of opportunities for farming and trading, the interface is a big minus for the exchange.
dYdX
In a nutshell
dYdX DEX is bound by the Ethereum blockchain, created in 2017. It is one of the most popular margin trading platforms bringing financial tools from trust markets to the blockchain world.
Pros
- Notable set of financial instruments
There are following key instruments:
- perpetuals;
- margin;
- spot trading;
- lending and borrowing.
- No limits
Loans and borrowings are without limitation of terms and minimums. And what’s more – users can trade with up to 25x leverage.
- Has an exchanched feature as well
dYdX uses the off-chain order books model.
- Quite friendly commission politics
The dYdX exchange operates on a taker/maker fee model.
The base maker fee is 0.02% and the taker fee is 0.05%, and is only charged on filled orders.
DYDX holders receive a discount on trading fees based on their holdings.
Also, you do not need to pay for gas when trading perpetuals or swapping supported assets.
Cons
With the beginning of crypto winter DYDX has fallen by 88% and now it is $2,05.
- Not so easy for beginners
In order to receive passive interest income, a user contributes his or her assets to certain pools (each asset has a lending pool corresponding only to it). So a user becomes a lender and then can borrow assets from this pool.
To borrow funds from a particular pool, you need to make a deposit. The excess collateral protocol is used to protect against risky loans. Therefore, the initial margin ratio should be at least 125%.
For whom?
This platform will be comfortable for an experienced DeFi user, who likes risk and who prefers the order book model instead of AMM.
The results
Different exchanges for the needs of different users. Pancakeswap, for example, emphasizes friendly design and unusual features, such as a lottery. Uniswap is suitable for those who continue trading on the Ethereum network, Curve is for people who appreciate the number of opportunities offered by the platform, and Nomiswap is perfect for those who prefer convenient trading, appreciate the absence of commissions and high farming apr.
Image by Alexander Lesnitsky from Pixabay
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