In terms of cryptocurrency adoption, 2020 has proven to be a breakout year. The introduction of DEXs and DeFi platforms provide users with more flexibility and earning potential than ever. One concept that blends these technologies perfectly is DEX (decentralized exchanges) aggregators. As such, aggregators continue to gain popularity in the industry for their competitive pricing and added benefits.
A DEX aggregator is a protocol that sources liquidity from different DEXs in the sector. Importantly, DEX aggregators offer users better token swap rates than they could get on any single DEX. Since these platforms leverage multiple exchanges, they have the ability to optimize multiple factors including slippage, swap fees, and provide a better selection of coins to users.
However, It is vital you understand that not every DEX aggregator is equal. It's recommended that you stick with platforms that have a reputation for security and an easy trading experience. These platforms fill a vital niche in the market. Here are the top 6 DeFi DEX aggregators to consider adding to your portfolio in 2020.
Uniswaps is the top DEX in terms of market cap globally. This aggregator features a simple one-click interface. The network permits trustless and permissionless trading and liquidity pools. Keenly, liquidity providers earn a pro-rata portion of the 0.3% trading fees each time the trading pair is used on the network.
Uniswap rose to fame due to its open access and deep liquidity. You can swap any two Ethereum assets against an underlying liquidity pool using the protocol. Uniswap was among the first DEX aggregators to allow anyone to create or seed a market by supplying it an equal value of the tokens being paired. Recently, the platform introduced a P2P lending feature known as the Uniswap Money Market.
SwapDEX is a next-generation DEX that provides a simple but well-designed interface. Users gain access to powerful trading tools such as trading view charts and encrypted wallets. Notably, SwapDEX is one of the first DEXs to incorporate limit orders directly into their portal. Uniswap users have wished for this feature for years.
The SwapDEX network was built from the ground up to provide a fast and user-friendly trading experience. To this extent, the developers succeeded. The network enables direct wallet-to-wallet trading without the need to wrap tokens in Ethereum. In this way, SwapDEX provides a user experience similar to a more centralized exchange or a platform using a cutting edge hybrid model.
SwapDEX's unique structure makes it among the most affordable DEX aggregators in the market. The platform incorporates smart contracts to control crucial functionalities including loading funds, trade authorization, and final settlement. For these reasons, SwapDEX is a top contender on any aggregator list
Kyber is a leading liquidity protocol and DEX aggregator. The platform is known for having some of the deepest liquidity pools in the DEX space. The network incentivizes Reserve Managers to contribute to liquidity pools by cutting them in on the fees generated. Keenly a percentage of all transaction, trading, and staking fees feedback into the Kyber pools.
Kyber features an extensive blockchain ecosystem. For example, the developers added Kyber Reserves this year. This feature offers liquidity on niche assets unavailable or untradeable on other DEXs. In this way, Kyber continues to service specialty traders and new users in the sector.
The dydx aggregator is unique in many ways. Amazingly, users can earn a passive income while supported assets sit on the exchange. Your capital supplied on dYdX collects interest, even while it is being used on an active trading position. This strategy provides you with added rewards for using the network.
As a DEX aggregator, dydx provides a variety of top quality products. The network features spot markets with competitive fees. Users can even go long or short on Ether with 5x leverage using this protocol. Currently, dydx offers permissionless margin lending. The network also features a seamless conversion between supported assets such as Dai, USDC, and ETH.
0x entered the market in 2016. This network allows for the peer-to-peer exchange of assets on the Ethereum network. The 0x API protocol is one of the most popular in the market. This API provides users the best prices on every trading pair. The developers behind the platform wanted to aggregate liquidity across different decentralized exchange networks via bridge contracts.
Bridge contracts are smart contracts that tap into the liquidity pools of both on-chain DEX networks like Kyber, Uniswap, and MakerDAO’s Oasis, and their off-chain counterparts like 0x. Impressively, 0x has managed to secure a strong community following. The platform has approximately $750 million in total volume and over 30 active projects built at this time.
IDEX is one of the oldest DEX aggregators available today. This Ethereum-based DEX features a non-custodial design that keeps you in control of your digital assets at all times. IDEX users enjoy real-time trading in tandem with a high transaction throughput. Together, these features create a seamless UX that continues to drive new users to the platform.
Many consider IDEX as one of the most advanced DEXs in the market currently. Interestingly, IDEX is just a small part of the Aurora project. Aurora is a collection of new-age Ethereum applications and protocols. Together they make up a decentralized banking and finance platform that includes the IDEX exchange, the Boreal stable currency, the Snowglobe decentralized exchange protocol, and Decentralized Capital. In this way, IDEX provides all the benefits of a hybrid decentralized exchange system.
The Top 6 DeFi DEX Aggregators to Consider in 2021
The DeFi sector continues to flex its earning potential as it morphs to serve the needs of the crypto community. DEX aggregators are a critical gear in this new financial system's development. You are sure to enjoy a top-notch trading experience when you stick to these reputable DEXs.