A decentralized exchange is a digital assets market that does not rely on any third party individuals or organizations to hold customer’s funds; instead, the platform offers a direct peer-to-peer trading mechanism that allows the users to process their transactions on an automated system.
It solves the main limitations that cryptocurrency markets face as there is no single point of failure, aligning them with what has made blockchain technology so powerful in the first place.
At this time, decentralized exchanges manage roughly 1–4% of the total trading volumes, and this is expected to grow between 5–20 times more in the next 24 months assuming that the trading volumes don’t change and there is a constant correlation between the token price and the projected usage.
Most popular decentralized exchanges on the market
1inch Exchange is a decentralized exchange (DEX) aggregator. It’s designed to roll liquidity and pricing from all major DEXes into one platform, making it easy to get the best price for the desired trade.
PancakeSwap is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. Uses an automated market maker (AMM) model where users trade against a liquidity pool. Such pools are filled with users’ funds.
Uniswap is a decentralized exchange protocol built on Ethereum. Uniswap is designed to function as a public good—a tool for the community trade tokens without platform fees or middlemen.
SushiSwap es una bifurcación de Uniswap con algunas diferencias clave, en particular, el token SUSHI. Uses liquidity pools and automated market makers to create liquid markets for token swaps.
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