Ethereum is by far the most important blockchain with smart contracts and is by far the leader as the basis for decentralized apps and applications. It has become even more important after the famous Ethereum Merge. This also contains decentralized exchanges (DEX), which are largely based on the Ethereum Blockchain. What are the top 5 Decentralized Exchanges (DEX) on the Ethereum Blockchain in 2022 after the merge? Let’s take a look at it in more detail.
What are Decentralized Exchanges (DEX)?
Decentralized exchanges (DEX) are trading platforms for cryptocurrencies that have a totally decentralized configuration. Here, trading partners can trade with each other directly and without a mediator. The exchanges are based on a peer-to-peer basis. The DEX works on blockchain principles.
DEX utilizes blockchain networks like Ethereum to complete totally decentralized financial transactions. As a result, decentralized exchanges offer total freedom and autonomy in financial transactions. This is what makes the DEX so engaging in contrast to centralized crypto exchanges like Binance.
Why use DEX Ethereum as a foundation?
Ethereum was the first blockchain to present smart contracts. As a result, Ethereum has been able to create a huge ecosystem in recent years. Most decentralized exchanges were created with Ethereum as the foundation, which equipped the network with the essential infrastructure and dependability. In recent years, Ethereum has had major issues with transaction expenses and transaction speeds. But with Ethereum 2.0 these problems should be fixed.
Ethereum has a major role in the field of decentralized applications. The stature of the network is huge, so most dApps and most DEX continue to depend on Ethereum as a trustworthy option with high stature.
Top 5 Best Decentralized Exchanges (DEX) On Ethereum Blockchain
In the following we would like to introduce you to the best-decentralized exchanges (DEX) on Ethereum in 2022:
Uniswap is the most famous decentralized exchange (DEX) in the Ethereum ecosystem. The popularity of Uniswap is intact in 2022. Due to its tall profile and popularity, Uniswap is the first option for many new projects established on Ethereum to utilize launchpads there.
On Uniswap, as a user, you can deliver liquidity to make passive income via your crypto holdings. You can also get Uniswap’s own token, UNI, as a reward. At the moment Uniswap has two versions: V2 and V3. The trading price at V2 is set at 0.3%, at V3 it ranges between 0.05%, 0.3%, and 1%.
— SushiSwap (@SushiSwap)
Sushiswap is another DEX created on Ethereum. It is an extension of Uniswap. Crypto assets can also be loaned, staked, and farmed here. Likewise, Sushiswap has extended to considerable other blockchain networks. The trading price at Sushiswap is 0.3%. The liquidity providers get 0.25% of this fee and the SUSHI token holders 0.05%. In addition to the percentage of the fees, the providers of liquidity also get the SUSHI token as a reward.
1 inch exchange
1inch Exchange is another DEX established on Ethereum. It offers swapping, a limit order feature, and yield farming. You can connect your wallet directly to the platform and do not have to enter any personal data. 1inch is a DEX that has more liquidity available than most decentralized platforms. Also, the prices for 1 inch are among the best on the entire market. The platform takes no fees for trading, withdrawals, and deposits.
Curve Finance is the next DEX established on Ethereum, and most recently also incorporated Fantom and Polygon for cost-efficient transactions. Besides swapping, investors can make money by delivering liquidity on the platform. The platform is distinguished by a high level of transparency regarding possible risks to users. The cost for trading is 0.04% of the transaction amount. The platform utilizes its own governance token called CRV. This also makes the platform a Decentralized Autonomous Organization (DAO).
The last Ethereum-based DEX we want to touch on is Balancer. On the platform, you can swap ERC20 tokens or put them into a liquidity pool to gain rewards and passive income in return. The trading fee on the platform is varying. Although Balancer is established on Ethereum, the platform can effectively decrease gas fees. Every trader gains the BAL token with every trade, which decreases the effective transaction costs in each case. Likewise, Balancer delivers a relatively high level of liquidity on the platform.