Decentralised exchanges (DEX) are blockchain technologies that allow two or more participants to conduct peer-to-peer transactions. Due to the decentralisation of asset exchange protocol, there has been a rise in the no of decntralised exchanges. They are decentralised because the functionality of smart contracts eliminates the need for central authorities.
Take a look at the top decentralised Exchanges in the world:
Uniswap
This decentralised exchange was launched in 2018 and ever since then, it has been a flexible protocol that has attracted a lot of DEX users. It is a place for traders, liquidity providers, and developers to earn, build and swap tokens.
A recently approved token approval mechanism known as Permit2 makes the Uniswap protocol even more desirable. The Permit2 integrates ERC20 and NFT into a single router. Uniswap uses the TWAP price to avoid smart contract mismatch with DeFi protocols which can lead to oracle problems.
DyDx
With centralised exchanges losing confidence in the ecosystem, the need for decentralised exchange has increased rapidly. DyDx is a layer-2 protocol and a non-custodial decentralised cryptocurrency exchange with up to 20X leverage 0 trading fees on its trading platform. Protocol safety and Governance are two important things for DyDx.
The dYdX exchange is developed on a layer-2 solution that allows for quicker transaction speeds, lower gas costs, lower trading fees, and lower minimum trade volumes (to avoid whale-transaction detection on the protocol).
Integral SIZE
Integral size is a custom-built DEX that aggregates huge trade orders on-chain and offers professional traders zero price effect as well as a 30-minute TWAP swap time for digital assets.Twap trading is one of the integral size DEX. Integral size guarantees 100 percent delivery with no impact on large trading volumes while on other DEXs trading large volume is quite risky.
The MEV protection included in the price contract with Integral SIZE is to reduce the influence of arbitrageurs and price front-running. This is critical for modest and real orders.
Curve Finance
Curve Finance is a liquidity-matching decentralised exchange that uses automated market makers to trade stablecoins. Automated market-making has a lot of advantages like improving price delivery efficiency and reducing slippage for traded pairings. These pools are smart contracts and the smart contracts validate stablecoin switching, which is the exchange of two or more tokens in the basket.
The Curve Finance exchange supports major stablecoins such as DAI, USDC, FRAX, USDT, and TUSD. Swaps between wrapped tokens like wBTC, wETH, and wrapped staked Ether,stETH, are also possible.
Pancake Swap
According to Coingecko, Pancake Swao is the highest traded volume decentralised exchange and it is built on the BNB smart chain. Users can use Pancake Swap to access a blockchain protocol with much lower transaction costs than protocols based on the Ethereum and Bitcoin blockchains.
Pancake Swap users can earn the native token CAKE by trading and exchanging on the network or even giving tokens in the Liquidity Pool.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/01/top-decentralised-exchanges-around-the-world/