Decentralized Exchanges (DEX)
Caricoins curated selection of the best decentralized finance solutions on the market today, sorted by category.
Before popular automated market-makers (AMMs), decentralized exchanges were notorious for their poor UXs and thin order books. Uniswap became the first widely-used permissionless DEX that enabled users to trade any Ethereum-based token directly through a web 3.0 wallet – all without any deposits or withdrawals to a centralized order book. Uniswap provides a one-stop-shop for exchanging any ERC20 token in a few clicks without having to worry about KYC, custody, or phishing. By leveraging smart contracts, Uniswap is able to offer autonomous on-chain transactions at marginal costs.
Bancor is a DEX which aims to solve the problem of illiquid markets by incentivizing users to provide liquidity for a share of trading fees. Trading with Bancor requires no buyer and seller matching, users can simply exchange their tokens as long as there is liquidity available. It is powered by the Bancor Network Token (BNT) which is used as an intermediary between pools in the network and across blockchains.
Matcha is a consumer-facing DEX built by 0x Protocol. It utilizes the 0x API and 0x Mesh, to leverage aggregated liquidity and price information from Kyber, Uniswap, Oasis, and other sources. By using smart order routing, Matcha automatically provides the end-user with the best possible price for their trade. The primary goal of Matcha is to be a clean and simple interface where anyone can swap tokens on-chain.
When it comes to interacting with Maker’s permissionless lending system, Oasis is the first place many turn. Consisting of three products – Trade, Save and Borrow – Oasis is a one-stop-shop for creating, saving and exchange Dai – the world’s first decentralized stable coin. Oasis leverages web 3 wallets like MetaMask, Trezor, Ledger Nano, Wallet Connect and Coinbase Wallet to access its suite of services.
Similar to platforms like Uniswap and Balancer, SushiSwap uses a collection of liquidity pools to achieve this goal. Users first lock up assets into smart contracts, and traders then buy and sell cryptocurrencies from those pools, swapping out one token for another. One of a growing number of decentralized finance (DeFi) platforms, SushiSwap allows users to trade cryptocurrencies without the need for a central operator administrator.