Best DeFi Decentralized Exchanges – 2021 Edition
It’s no secret that DeFi decentralized exchanges (DEX) are on the rise. These unique networks provide users with more security, lower fees, and privacy options not available on centralized options. DeFi DEXes combine the benefits of a peer-to-peer non-custodial approach with the earning potential of DeFi (decentralized finance). For these reasons, they are now more popular than ever.
If you are new to the crypto space, DEXes, or DeFi, there is a lot to unpack. These networks are often less promoted than central exchanges like Binance, and for this reason, you may find it difficult to determine what platforms are worth your time and what platforms are best left alone. Luckily, you can save yourself hours of research by sticking with these reputable networks. Here are the best DeFi decentralized exchanges to check out in 2021.
Kyber Swap brings a lot of UX upgrades to the sector. The platform is one of the few DEXs that provides users with a mobile app. Additionally, Kyber’s technology and network form the underlying technology of multiple other DeFi platforms. Notably, it’s one of the most popular DEX options in the market today, thanks to its ease-of-use and deep liquidity.
The network introduces a new protocol called the Kyber Reserves. This technology was designed to help boost liquidity on niche assets. Additionally, the network supports credit card purchases of select coins. Users can gain extra leverage in this way.
One of Kyber Swap’s key aspects is its native token known as Kyber Network Crystals ($KNC). This token serves multiple purposes within the ecosystem. Users can save on trading fees and vote on pressing network issues via the KyberDAO. KNC can also be used to seed fund a liquidity pool for a new project.
DEX.ag is another strong contender in the market at this time. This unique DEX allows users to review any ERC-20 token and compare rates on multiple decentralized exchanges. Currently, the platform monitors 0x V3, Bancor, Curve, Oasis, Synthetix, Uniswap, and Kyber to provide you with the best possible rates.
At the core of this network is a price discovery mechanism that enables traders greater price accuracy. To accomplish this task, the network actively monitors each Ethereum block. The exchange will take this data and derive prices. This approach takes less than a second after their addition to the blockchain.
Another cool feature of this network is X Blaster. This protocol can split your trades into smaller transactions and spread them across multiple DEXs. This strategy kelps to provide liquidity and reduces slippage. Notably, DEX.ag recently added support for the MEW (MetaMask) interface. This upgrade removes all technical barriers and allows anyone to conduct a fully decentralized swap in under a minute.
Airswap is a Hong Kong-based DeFi DEX built from the ground up to enhance user privacy and security. One of the most impressive features of this exchange is its transaction-free trading capabilities. With centralized exchanges charging as high a 3%, Airswap is an enticing option. Investors felt the same way. The network secured $30 million during its 2017 crowdsale.
All Airswap trades are cryptographically signed and guaranteed to fill at the specified price. Internally, this zero slippage is accomplished thanks to the combination of web protocols and smart contracts that power the network’s request-for-quote system. Additionally, Airswap supports direct chain-to-chain trades known as Atomic Swaps.
Airswap users can save on fees using the AirSwap Token (AST). You can also launch liquidity pools using this unique digital asset. AST serves a role in the governance mechanism of the platforms as well. AST holders get a vote in future upgrades and protocol adjustments. To top it off, there is even a chat room where traders can discuss projects and strategies.
Dydx is one of the only exchanges globally that allows you to earn passive income while your tokens sit on the exchange. Supported tokens collect interest on the network. Impressively, these projects can earn rewards even while remaining in an active trading position.
Dydx is a smart choice for advanced traders seeking a DEX security but features often found on centralized exchanges. For example, the platform allows users to go long or short on Ether with up to 5x leverage. Leveraged trading strategies allow you to increase your ROI potential. However, they also increase your risk exposure.
Dydx’s network allows for permissionless spot trading, as well as cross-margin lending and borrowing. Users enjoy seamless conversion between tokens via the exchange’s simplistic interface. Additionally, the platform supports all the hottest tokens in the market today, such as Dai, USDC, and ETH.
0x has been a top DeFi DEX since it entered the market in 2016. As one of the early entrances into the sector, the network has had its open-source code fully reviewed and tested by the community. Interesting fact: the 0x’s name is derived from the first characters of Ethereum wallet addresses.
0x is one of the most popular DEXs available today. The network boasts around $750 million in total daily trading volume. Additionally, the network supports over 30 DeFi projects. You can find all the top DeFi options when you trade on 0x.
This network also features a robust API. This protocol enables anyone to find excellent prices on your trading pairs. As a liquidity aggregator, the network can scan various DEXs to accomplish this task. 0x is one of the only DEXs that can tap into the liquidity pools of both on-chain and off-chain DEX networks.
Best DeFi Decentralized Exchanges – 2021 Edition
Now that the DEX community has grown to its current state, it makes no sense to keep risking your cryptocurrency on centralized exchanges. They charge you higher fees and force you to relinquish control of your digital assets before you can even begin to trade. These top DeFi DEXs are all you need to push your ROIs to the next level and further drive decentralization across the industry.