The first decentralized exchanges were very slow, with companies like Bisq allowing people to find each other off-chain and making peer-to-peer transactions. In 2016, EtherDelta began to imagine a more futuristic DEX. The platform used smart contracts to manage trading wallets in the traditional order-book model. This model, however, was not as compatible with Ethereum, lacked liquidity, and had a complicated user experience. In 2018, a new generation of cryptocurrency exchanges has come to the fore. They use automated market makers, asset pricing dictated by permissionless protocols, and liquidity pools rather than buyers and sellers. Fast forward to 2021 and decentralized exchanges have become immensely popular. Here is the list of the top 10 best cryptocurrencies DEX aggregators in 2021 everyone should know about.
dYdX is the developer of a leading non-custodial decentralized exchange on a mission to build open, secure, and powerful financial products. dYdX runs on audited smart contracts on Ethereum, which eliminates the need to trust a central exchange while trading. The exchange combines the security and transparency of a decentralized exchange, with the speed and usability of a centralized exchange.
PancakeSwap is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker (AMM) model where users trade against a liquidity pool. Such pools are filled with users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees.
SushiSwap is first on the list of culinary-themed decentralized exchanges. If you’re a fan of sushi over unicorns, this may appeal to your senses more. In any case, SushiSwap has a lot in common with Uniswap since it is a fork of Uniswap.
1inch Liquidity Protocol
1inch is one of the leading DEX aggregators that offers the best rates by discovering the most efficient swapping routes across all leading DEXes. If you’re worried that an Oasis coin might have a lower price than a Uniswap one, you can ease your worry with DEX aggregators like 1inch. The platform also operates on the Ethereum and Binance Smart Chain, allowing diversification in your trading options.
Uniswap is a protocol for automated token exchange on Ethereum. It was launched on November 2, 2018. Uniswap describes itself as a simple smart contract interface for swapping ERC20 tokens. It has a formalized model for pooling liquidity reserves. It serves as an open-source frontend interface for traders and liquidity providers and is committed to providing free and decentralized asset exchange.
Raydium is an automated market maker (AMM) and liquidity provider built on the Solana blockchain for the Serum decentralized exchange (DEX). Unlike any other AMMs, Raydium provides on-chain liquidity to a central limit order book meaning that funds deposited into Raydium are converted into limit orders which sit on Serum’s order books. This gives Raydium LPs access to all of Serum’s order flow as well as their existing liquidity.
Trader Joe is your one-stop DEX aggregator on the Avalanche network. It combines DEX services with DeFi lending to offer leveraged trading. Trader Joe products are community-driven which allows Trader Joe to give fees collected from liquidation and swaps back to the users via our JOE/xJOE staking mechanism. JOE is a governance token that also rewards its holders with a share of exchange revenues.
1Hive is a DAO that issues and distributes a digital currency called Honey. Honey holders stake on proposals using Conviction Voting to determine how issuance is distributed. By supporting proposals that increase the value of Honey, a positive feedback loop drives growth and sustainability. Conviction voting allows everyone to participate and shape the direction of 1Hive while preventing anyone from taking control or ownership. Honeyswap is one of the best DEX aggregators in 2021.
Mdex is an automatic market-making decentralized exchange based on the concept of fund pools. MDEX proposes and implements a mix-chain DEX model based on the Heco Chain and Ethereum. Mdex combines the advantages of the low transaction fees of the Heco chain and the prosperity of the Ethereum ecosystem. With MDEX, users can also await a dual mining mechanism of liquidity and transactions.
QuickSwap is a permissionless decentralized exchange (DEX) based on Ethereum, powered by Matic network’s layer 2 scalability infrastructure. By utilizing layer 2 for transactions, QuickSwap users will be able to trade any ERC20 asset at lightning-fast speeds with near-zero gas costs.