Solana, the thriving blockchain network, boasts a vibrant ecosystem of decentralized exchanges (DEXs), each offering unique features and benefits to the crypto community. Today, we will learn about the top 5 best Solana DEXs in 2024 through this article.
Solana ecosystem overview after FTX crisis
In a tumultuous turn of events that shook the cryptocurrency space in 2022, the collapse of FTX sent shockwaves rippling through the industry. While various ecosystems felt the impact, the Solana network was particularly hard hit in the aftermath. The collapse prompted Solana’s core team and numerous investors to assess the damage incurred by teams working on products, services, and decentralized applications within their ecosystem.
The situation worsened when FTX’s former CEO, Sam Bankman-Fried, was found guilty last week, adding to the turmoil. However, amidst the chaos, holders of a token long associated with Bankman-Fried found unexpected relief. The token’s value surged by more than 300% in 2023, following the guilty verdict.
In the days leading up to FTX’s bankruptcy, Solana’s native token, SOL, plummeted by over 60%. By the time Bankman-Fried was arrested and extradited to the U.S., SOL’s price had dropped to $10, marking a staggering 94% decrease from its value at the beginning of 2022.
Despite a brief setback when the token was frequently mentioned during Bankman-Fried’s trial in early October, Solana exhibited resilience, trending upward.
This positive trend came as a relief for organizations supporting the Solana network, including Solana Labs, the entity behind the ecosystem’s products and tools. Solana, introduced in 2020 as a faster and more affordable alternative to Ethereum, once had Bankman-Fried as a significant supporter. He hailed SOL as the “most underrated” token. At its peak in 2021, SOL was valued at $260. However, Bankman-Fried’s support, which was once advantageous, later burdened the token.
Solana, ranking among the top 10 cryptocurrencies by market capitalization, experienced substantial buying activity on leading exchanges Coinbase and Binance, with purchases exceeding 2.2 million and 2 million SOL, respectively, on October 18, 2023. This surge in demand on these platforms contrasted with reduced interest observed on Bybit, Upbit, and OKX.
The recovery estimate for Solana could even be conservative. Notably, the value of the bankruptcy estate increased by approximately $1 billion in the past two weeks, thanks to a massive rally in SOL’s price. FTX, holding 55.8 million SOL tokens, the majority of which (42.2 million) are currently locked and not immediately tradable, faced a dramatic shift in the token’s market value. Previously estimated at $1.16 billion, SOL’s price soared from around $20 to approximately $46.
Despite the challenges posed by the FTX collapse, Solana’s remarkable recovery showcases the resilience of the cryptocurrency market. As it continues to surge, industry experts are closely watching the network’s progress, highlighting the ability of digital assets to weather even the most significant storms.
The influence of DEX on Solana
In a matter of mere months, Solana’s leading decentralized exchange (DEX) platforms, notably Raydium and Orca, have shown exceptional growth, challenging well-established names in the market and substantially increasing their trading volumes and total value locked (TVL).
This significant surge marks a significant departure from the trend observed in the previous year. In 2022, the total value locked in Solana’s DeFi sector experienced a gradual decline, influenced by the decreasing price of SOL, the native cryptocurrency of the Solana network, and the broader market’s downturn. Concerns regarding the project’s association with the financially troubled FTX exchange further exacerbated the downward trajectory.
It is important to highlight that, despite the recent growth, DeFi Solana’s TVL still falls considerably short of its all-time high (ATH) of over $10 billion, achieved during the peak of the bullish market in 2021. During this period, the Solana blockchain garnered significant attention as a potential “Ethereum killer.”
Top 5 best Solana DEXs 2024
- Orca
- Raydium
- 01 Protocol
- Serum
- Saber
Orca
Overview
Orca, the decentralized exchange (DEX) on the Solana blockchain, is making waves with its innovative approach to automated market maker (AMM) models. Similar to established platforms like Uniswap, Orca brings fast and cost-effective token exchanges to Solana enthusiasts while harnessing the unique advantages of the Solana ecosystem.
One of the primary distinguishing features of Orca is its seamless integration into the Solana blockchain. This strategic choice grants Orca access to the manifold benefits of the Solana ecosystem, including low transaction fees, lightning-fast network speeds, and user-friendly operations. By operating in harmony with Solana’s expansive platform, Orca goes beyond merely supporting native tokens and stablecoins, prioritizing user experience, efficiency, and capital optimization.
At its core, Orca offers all the fundamental features you’d expect from a DEX platform: token swapping and the addition of liquidity to pools. However, what truly sets Orca apart is its unwavering commitment to elevating the user experience and its steadfast support for native tokens and stablecoins within the Solana ecosystem. Orca is one of the best Solana DEXs that you should experience.
Features
User-Friendly Interface and Wallet Compatibility
Orca is built on the foundation of simplicity and user-friendliness. Its interface is designed to be easily navigable, making it an ideal platform for those just entering the world of cryptocurrency. But Orca doesn’t stop at ease of use; it also extends support to various popular transaction wallets, including Pantom, SafePal, Trust, C98, and more. This compatibility ensures that users can seamlessly connect their preferred wallets, making the trading experience more convenient and accessible.
Low Costs and Swift Transactions
One of the standout features of Orca is its commitment to keeping costs low and transaction speeds fast. The platform prides itself on offering minimal price slippage, typically hovering around a mere 1%. This low slippage is a significant advantage for traders, as it means they can execute their transactions at rates closely aligned with market prices, reducing the impact of price fluctuations.
Fair Price Indicator
Orca goes the extra mile to ensure transparency and fairness in its transactions by implementing the Fair Price Indicator. This innovative feature assesses two vital conditions before executing a transaction:
- The executed transaction rate is within 1% of the market rate listed on CoinGecko.
- The slippage price remains within the user’s predetermined tolerance setting, which is set as a default of 1%.
By adhering to these stringent conditions, Orca aims to guarantee that users receive the best possible rates while trading, minimizing the potential for surprise slippage and ensuring a fair and transparent trading environment.
Liquidity Provision on the Solana Network
Beyond trading, Orca empowers users to contribute to liquidity provision. By sending token pairs through the Solana network, users can participate in serving transactions and receive LP (Liquidity Provider) tokens in return. This approach allows users to actively engage with the crypto ecosystem, potentially earning rewards while supporting the network’s liquidity needs.
Raydium
Overview
Raydium is a decentralized AMM (automated market maker) on the Solana blockchain. It has quickly risen to prominence by leveraging the strengths of Solana’s vibrant ecosystem and Serum. Raydium is on the list of best Solana DEXs, which is unquestionable.
Raydium stands as one of the first DEX within the burgeoning Solana ecosystem. Drawing inspiration from Uniswap V2, it shares many of the renowned AMM’s features, providing traders with a familiar interface and experience. However, Raydium’s association with Solana, a rapidly growing blockchain platform, sets it on a trajectory to catalyze substantial innovation within decentralized trading.
One of the key advantages of Raydium is its exceptional speed and cost-effectiveness, which are inherent to the Solana blockchain. Additionally, Raydium seamlessly integrates with both the broader Solana ecosystem and Serum, enhancing liquidity and offering a comprehensive trading experience.
The surge in excitement surrounding DeFi is a testament to the increasing interest in DEXs employing AMM models. Established names in the DeFi space like Maker, Compound, Uniswap, Aave, and SushiSwap have attracted a burgeoning community of investors. Raydium, while only launching in February 2021, has already garnered significant attention and popularity within this landscape.
Features
Faster and Cheaper Transactions
Raydium harnesses the speed and efficiency of the Solana blockchain, ensuring that transactions are lightning-fast compared to the congested Ethereum network. Furthermore, gas fees on Solana are merely a fraction of what users would encounter on Ethereum, making Raydium an attractive option for traders.
Serum Liquidity Integration
Raydium takes its liquidity to the next level by integrating with Serum, which boasts the most liquid DEX on the Serum network. Users can enjoy access to Serum’s robust order book, providing enhanced liquidity for their trades.
Professional Trading Interface
Raydium goes beyond being a simple exchange. It offers users a full trading interface with features such as TradingView charts and Limit Orders. This professional-grade interface caters to traders seeking a comprehensive trading experience.
IDO Platform
Raydium not only serves as a trading platform but also as a launchpad for Initial DEX Offerings (IDOs). In the past, Raydium’s IDO method allowed universal participation, enabling interested individuals to purchase the project token, AcceleRator. This feature further positions Raydium as a versatile and comprehensive DeFi platform.
01 Protocol
Overview
The next name on the list of best Solana DEXs is 01 Protocol. It is a decentralized protocol that aims to create an innovative derivatives trading environment on the blockchain. The main product of the project is Everlasting Options, a type of options contract that never expires, helping users participate in options trading more easily and conveniently.
Everlasting options have garnered immense attention for their promise to revolutionize the options trading experience. Unlike traditional options, which come with fixed expiration dates, these novel contracts are perpetual, allowing users to engage in options trading without the constraints of time limitations. This game-changing approach eliminates the need to constantly renew or replace contracts, thereby simplifying and streamlining the entire trading process.
Protocol 01’s forward-thinking approach doesn’t stop at the concept of Everlasting options alone. The project has strategically chosen to build its innovative product on the Serum platform, a decentralized exchange infrastructure that operates on the Solana blockchain. This choice is pivotal in establishing a foundation of honesty and trust within the trading ecosystem.
By integrating Everlasting options with Serum, Protocol 01 ensures transparency, security, and efficiency in the trading process. The Solana blockchain provides a robust infrastructure for DeFi projects, making it an ideal choice for Protocol 01’s innovative offerings.
Features
Decentralized Options Trading with No Expiration Date
Unlike traditional derivatives exchanges, 01 Protocol introduces a groundbreaking concept in the realm of options trading. It offers options contracts with no expiration date. Traders are no longer constrained by the ticking clock of expiration dates. Instead, they have the flexibility to exercise their options contracts at any time by simply paying a premium. This feature liberates users from the pressure of time constraints, allowing them to maintain their positions according to their preferences.
Cross-Chain Mortgage for Enhanced Flexibility
01 Protocol’s cross-chain mortgage capability is a game-changer in the DeFi space. Users can mortgage their assets from different blockchain networks or leverage LP Tokens obtained by providing liquidity to secure their positions. This cross-chain compatibility significantly broadens the range of assets that can be utilized, giving traders and investors more flexibility and choice.
Decentralized Order Book Market for Enhanced Visibility
One of the standout features of 01 Protocol is its integration with Serum, a high-liquidity platform. This integration connects 01 Protocol’s options exchanges with Serum, resulting in a decentralized order book market. This innovation makes option transactions more visible on centralized exchanges, providing users with a seamless experience and increasing market accessibility.
Trustless Transactions for Enhanced Security
As a decentralized exchange, 01 Protocol prioritizes the security and privacy of its users. To achieve this, the platform requires only non-custodial wallets for participation. By doing so, 01 Protocol ensures that it does not have control over users’ wallet passwords or transaction data, giving users full control and peace of mind over their assets.
Serum
Overview
Serum’s journey began with a vision to eliminate centralization vulnerabilities that plagued the DeFi space, striving to create the ultimate user experience. Serum can be said to be one of the best Solana DEXs providing many options for users.
Serum is not just a DEX; it is a fully decentralized platform itself, firmly anchored in the Solana blockchain. This dual functionality sets it apart in the world of DeFi, promising a unique and innovative approach. What makes Serum stand out is its commitment to eradicating dependence on queues and ensuring a constantly updated order book.
One of Serum’s pivotal moments was in March 2021 when it introduced Serum DEX. This launch marked a significant step towards achieving its goals. By significantly reducing reliance on queues, Serum has been able to guarantee that its order book is consistently up-to-date. This approach streamlines trading processes, ensuring that users have the most accurate and real-time information at their disposal.
The DEX’s primary mission revolves around delivering the best possible user experience in the DeFi landscape. The platform was conceived to address the centralization vulnerabilities that have often plagued the current DeFi space. By building on the Solana blockchain, Serum has tapped into the scalability, speed, and security that Solana offers, making it a formidable player in the DeFi ecosystem.
Features
Fully Decentralized Oracles
Serum empowers DeFi projects by allowing them to source data from decentralized oracles. This crucial feature ensures that projects can operate independently, free from reliance on any other platform. Serum’s dedication to decentralization is a cornerstone of its mission.
Unparalleled Speed and Cost-Efficiency
Built on the Solana blockchain, Serum stands out with its lightning-fast transaction processing capabilities. Transactions are executed many times faster, and transaction fees remain exceptionally affordable. This not only benefits traders but also contributes to the efficiency of the DeFi ecosystem.
Advanced Orderbooks with Serum DEX
Serum takes the DEX concept a step further with the launch of Serum DEX, built on Solana. This DEX inherits the decentralization and automation features of Automated Market Makers (AMMs) while also allowing users to utilize limit orders. This combination provides traders with a versatile and efficient trading experience.
Cross-Chain Swaps
Serum DEX’s integration of cross-chain functionality stands as a testament to its commitment to versatility. Users can seamlessly exchange data and cryptocurrencies between different blockchains, eliminating the need for third-party intermediaries. This feature enhances interoperability within the DeFi space.
Innovative Stablecoin Models
Serum introduces two innovative stablecoin models, SerumBTC and SerumUSDa. These tokenized products offer stability and independence from traditional banking systems. Serum’s stablecoins open up new possibilities in the DeFi realm, providing users with reliable and decentralized options.
Saber
Overview
Originally known as Saberswap, the project was a DEX and AMM platform operating on Solana’s blockchain. Saber’s unique protocol is designed to minimize slippage, drawing inspiration from the renowned Curve Finance. In addition to its AMM functionality, Saber has been actively developing yield features that allow users to generate profits by providing liquidity.
Saber’s primary focus has been as an AMM DEX platform catering specifically to stablecoins within the Solana ecosystem. While most decentralized exchanges typically rely on the Order-book mechanism, Saber adopts the AMM mechanism. This mechanism involves Liquidity Providers contributing their assets to the liquidity pool, facilitating seamless asset swaps for traders.
By employing the AMM mechanism, Saber aims to address the liquidity issues commonly associated with Orderbook-based DEXs. The operation bears similarities to Curve Finance, the largest stablecoin AMM platform deployed across three prominent networks: Ethereum, Polygon, and Fantom.
Saber, however, has evolved beyond being a mere AMM DEX for stablecoins. In a recent strategic move, the platform joined forces with Ren Protocol to introduce the renBTC and BTC asset pair to Saber’s liquidity pool. This pivotal partnership signifies Saber’s ambition to become the preeminent AMM DEX for Pegged Assets in the ever-expanding DeFi landscape.
The collaboration with Ren Protocol marks a significant milestone for Saber, demonstrating its commitment to diversifying its offerings and providing a comprehensive DeFi ecosystem. The addition of renBTC and BTC assets to Saber’s liquidity pool will open up new avenues for users, offering enhanced flexibility and opportunities in the world of decentralized finance.
Features
Anti-Price Slippage Mechanism
Saber’s standout feature is its anti-price slippage mechanism, which comes into play with transactions exceeding $100,000. Price slippage, a common concern in the cryptocurrency market, can impact traders on various platforms.
On Raydium, for instance, price slippage can increase up to 1% for such large transactions. Saber, however, has devised a solution to minimize this risk. With its advanced anti-slippage mechanism, Saber ensures that even substantial transactions remain smooth and predictable, safeguarding traders against unexpected losses.
Powered by Solana
Saber’s choice to deploy on the Solana platform is a strategic move that brings several remarkable benefits to the table. Solana, known for its rapid transaction speeds, can achieve up to 65,000 transactions per second (TPS). This efficiency is coupled with cost-effective transaction fees, typically amounting to only about $0.005 per transaction. As a result, users making transactions on Saber experience virtually no delays. Swap orders are executed swiftly, providing traders with a seamless and efficient trading experience.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Source: https://coincu.com/227318-top-5-best-solana-dexs-in-2024/