What should you know about decentralized exchanges? Explained
If you are interested in DeFi, then you would also be interested in DEXs (Decentralized exchanges). Here is a gist of some of the popular names. Decentralized Finance is a popular term in the cryptocurrency world right now, and some cryptocurrency exchanges revolve around that. These exchanges offer a degree of security and flexibility to cryptocurrency users. Due to that, DEXs (Decentralized Exchanges) are becoming quite popular today. So, we will go through the top cryptocurrency exchanges list and get a look into them. First, we have Uniswap, a DEX that offers an impeccable user experience allowing people to transact using Ethereum-based assets against a liquidity pool. It is a trusted brand that allows people to transact their currencies without any permission. The exchange has recently launched a feature called Uniswap Money Market, thus enabling investors to use UNI LP (the exchange's tokens) as collateral while applying for loans. This exchange has various projects, one of them, Synthetic, offers incentives for seeding liquidity. MDEX (Malaysia Derivatives Exchange) is another popular name on the list. This exchange creates its market, and mainly works on the concept of fund pools. The third one on this list is Curve Finance, an exchanger where the main currency is stablecoins. However, it supports other cryptocurrencies too, such as DAI, USDC, USDT, TUSD, BUSD, BTC, and sUSD. In this exchange, people can easily choose the desired pair, and it is considered the best among the exchanges that involve stablecoins. According to users, this is a cost-effective exchange, compared to the others available to users. The Curve is constantly rolling out many functions and features, and it may soon overtake others. The fourth exchange we are going to talk about is 1inch, which acts as an aggregator. This platform is slightly different, as it allows people to draw liquidity from different places. This creates multiple scopes for profit, as
people can choose to draw liquidity from a profitable source. If anyone is looking to perform high-value transactions, then this is the best choice. This exchange offers different options, such as swaps, limit orders, and lending rates. dYdX is another name that is quite popular among users. This is an exchange that allows people to earn both active and passive income. Some of the options offered by this tool are as follows: • Cross-margin lending • Borrowing The main currency here is Ether, however, it can be converted into other currencies. This exchange allows people to flexible with their staking. Aave also comes with a dedicated exchange, and it deals with both stable and variable interest amounts. This is a popular choice and it works on the DeFi-based lending protocol that already exists in the market. These are the top 5 among the top cryptocurrency exchanges listc and there are several others as soon as possible. Other names include: • Balancer • Kyber • 0X • Paraswap If you want to learn more about them, you can visit different resources about them. DeFi-based exchanges are best because: • They are automated (until liquidity is expired) • Users don’t have to worry about revokement of custody of their assets • Cost-efficient • Can be accessed from anywhere