The Polygon network (formerly called MATIC) is a modern, innovative blockchain that represents a scaling solution for Ethereum. In the future, Polygon is set to become a full-fledged multi-chain platform. Polygon offers a faster and more efficient blockchain than Ethereum. Therefore, many developers decide to develop decentralized exchanges, DEX for short, on Polygon. But what are the best decentralized exchanges (DEX) on Polygon? In this article, we discuss the top 5 best DEX on the Polygon blockchain and the characteristics and advantages of each.
What is Polygon (MATIC)?
Polygon is a blockchain network, which is a scaling solution for the Ethereum blockchain. The Polygon Blockchain is more efficient and the transactions are cheaper. In the future, Polygon is to be further developed into a multi-chain platform. The Polygon blockchain thus represents a serious alternative to the Ethereum blockchain.
In recent years, the Polygon network was still known under the name MATIC. Polygon’s network token will continue to be called MATIC. The network was published in 2017 and has been growing continuously for years. Polygon uses so-called side and plasma chains to establish a cost-effective and fast link to Ethereum for developers.
What are Decentralized Exchanges (DEX)?
Decentralized stock exchanges or decentralized exchanges (short: DEX) are trading places for cryptocurrencies that are based on a decentralized structure. It is a peer-to-peer marketplace where participants trade directly with each other. There is no intermediate instance like a bank.
By being able to carry out decentralized financial transactions, the DEX performs one of the most important functions of the blockchain. The DEX offers new freedom and independence in transactions of financial products. They are opposed to central crypto exchanges such as Binance and Bitfinex.
Why are Decentralized Exchange (DEX) developers using Polygon?
As already mentioned, Polygon is a scaling solution for Ethereum that is cheaper and more efficient than the main Ethereum chain. Polygon uses certain side chains to better distribute the transaction load in decentralized applications. Ethereum has had increasing problems with high transaction costs and low transaction speeds in recent years.
Therefore, Polygon is a very efficient network to develop decentralized applications like decentralized exchanges (DEX). As Polygon continues to be a part of the Ethereum ecosystem, Ethereum also benefits from new applications on Polygon.
What are the top 5 Best DEX for Polygon?
Below we would like to introduce the top 5 DEX on Polygon:
1. Quick swap
Quickswap is a Uniswap fork and Automated Match Maker (AMM) on the Polygon network. In terms of its structure, Quickswap is very similar to the Uniswap platform. The difference to Uniswap is the increased speed of Quickswap.
Quickswap takes full advantage of the high speeds and low fees that Polygon can offer for DEX. In recent months, Quickswap has become increasingly important and now has a Total Locked Value (TLV) of $359.83 million (as of July 19, 2022). In April 2021 (bull market) it even rose to over $1 billion.
Like Quickswap, Sushiswap is another fork of Uniswap. The platform has its own governance token called SUSHI. Through this token, the owners get governance rights and part of the fees paid from the platform.
Originally, Sushiswap ran on the Ethereum blockchain. However, in May 2021, Sushiswap announced that it is now available on the Polygon network. Right now, Sushiswap’s TLV is $727.4 million. This was almost $7 trillion last year.
Firebird Finance is a DeFi platform built on Polygon and on the Binance Smart Chain (BSC). It aims to help traders maximize their returns on the DeFi platform. It is a combination of exchange, return aggregator and vault platform.
The platform includes swapping, an AMM with yield farming functions, an AMM for stablecoins and a vault for staking. It is also possible to create yield farming for a project on the platform within a few minutes. TLV is currently $467.9 million.
4. Polycat Finance
Polycat Finance is a relatively new DEX on the Polygon blockchain. This offers various functions as a DEX. These include initial farming offers, a burning vault in which your own tokens can be sold and burned, and the option to stake your own FISH token.
In total, there can only be 3 million FISH tokens, which makes the token more valuable and the platform even more attractive. In 2021, Polycat (FISH) achieved a TLV of over $100 million. It has since fallen to 3.5 million in the bear market.
Polydex is another well-known DEX based on Polygon. It offers zero-gas transactions and elastic yield farming. This is a spin-off from Pancakeswap. The platform is characterized by faster transactions and the absence of congestion.
Polydex’ native token is PLX. This is also used for a lottery jackpot called Polyto. During the fall bull market, Polydex reached a TLV of more than $5 million and was rapidly climbing. Meanwhile, the TLV is at $386.4 million in the bear market.
Do Polygon’s DEX have a future?
Polygon (MATIC) has risen in the rank of the most valuable cryptocurrencies by market cap over the past few months. Polygon is now at number 12. This shows that despite the bear market, the Polygon network is still on the up.
Polygon’s TLV is still $1.82 billion despite the bear market. Its efficient transactions and high scalability in connection with the association with Ethereum should make Polygon is future one of the most successful blockchain networks. This also leads to the fact that the DEX based on Polygon will be successful in the future.