Uniswap has been around since November 2018 when Hayden Adams released the first version of Uniswap
Since then, it has been growing slowly, but surely
until its popularity skyrocketed around $UNI airdrop on September 16th, 2020. Anybody who used Uniswap before September 2020 was eligible to claim up to 400 UNI tokens, worth around $1200 at the time of the airdrop.
With a current price of around $11.50, the price of $UNI has surged over 290% since the token went live, and just like with Bitcoin, people went looking for the 'next one' that could rival and experience similar gains.
However, these days users are not looking for Uniswap alternatives just for gain purposes, but also for more trading options and most importantly, cheaper and faster service.
With that, let's explore Uniswap alternatives that also have a token.
1. SushiSwap ($SUSHI)
SushiSwap launched in late August 2020. It was created by an anonymous developer known as Chef Nomi. After an initial hiccup in which Chef Nomi sold $14 million worth of ETH from a developer fund, Sam Bankman-Fried of FTX Exchange ended up becoming the lead figurehead at SushiSwap and took control of the project. Chef Nomi did eventually return the entire funds he previously sold.
In December 2020, Yearn Finance did merge with Sushi and put it under its own umbrella.
How's Sushiswap different from Uniswap?
- SushiSwap was the first to introduce its AMM token as a form of reward for users that provided liquidity on the platform.
- SushiSwap is still running its incentive campaign while Uniswap’s are over.
- Uniswap charges trading fees of 0.3%, to be given to liquidity providers. SushiSwap charges 0.25%, with the other 0.025% being converted into SUSHI and distributed to SUSHI token holders. Or in other words, SUSHI pays out dividends.
2. Loopring AMM ($LRC)
Loopring launched its AMM, based on Loopring 3.6, in early December 2020. The Loopring team created it after months of working behind the scenes to integrate their zkRollup technology for gas-free instant swaps.
How's Loopring AMM different from Uniswap?
- The Loopring AMM runs on top of its zkRollup Layer-2 scaling technology, while Uniswap runs on the Ethereum blockchain (layer 1) itself. This means that swaps on Loopring AMM will not clog up the Ethereum blockchain, which causes transaction fees to skyrocket.
- The Layer-2 technology means that users do not need to pay gas fees for swaps or for adding/removing liquidity into the protocol.
- Swap speed and throughout are significantly higher on Loopring AMM as they are completed instantly.
- Swap fees on Loopring AMM is 0.25%, with 0.1% going to the Loopring Relayer. Uniswap fees come in at 0.3% for users.
- Loopring conducted a mining incentive program to encourage the Ethereum community to move to layer-2 upon launching.
- Loopring 3.6 can match regular order book trades with AMM pools natively without the need for extra funds to do arbitrage. These can be partially split between order books and AMM pools through Smart Order Routing.
3. Bancor ($BNT)
Bancor launched the first AMM on Ethereum in 2017, giving birth to the concept of AMM that later on spawned Uniswap. Since then, it has upgraded its protocol numerous times to take its protocol much further. It was founded by Galia Benartzi, Guy Benartzi, Eyal Hertzog, and Yudi Levi and is registered in Switzerland.
How's Bancor AMM different from Uniswap?
- Bancor pioneers AMM model with BNT token at its core, while Uniswap puts ETH at the center of its business
- Bancor allows liquidity providers to deposit a single asset exposure instead of having to split their holdings 50/50 when providing liquidity to a pool.
- Bancor has impermanent loss protection for liquidity providers
4. 1inch Exchange
Founded in May 2019 by Sergej Kunz and Anton Bukiov, launched in late July 2020. It is a non-custodial DEX aggregator that routes all trades through a range of different protocols. It also launched its own AMM called Mooniswap.
How's 1inch Exchange different from Uniswap?
- 1inch Exchange conducts token routing across 15 different DEX protocols, including Uniswap
- The aggregator also splits orders amongst the listed DEXs to reduce price slippage when conducting the trade. This is perfect for whales that experience major slippage when conducting huge trades on Uniswap.
- 1inch has DEX limit orders allowing traders to place orders and go to sleep with a clear mind. Alternatively, Uniswap has no such function, which often keeps traders up at night, making sure they do not miss a large price move on an ERC-20 that trades only on AMMs.
- 1inch also has advanced routing to covert stablecoins in one click. On Uniswap, users often have to trade against a multitude of stablecoins before arriving at the one they originally needed.
- 1inch also has the Chi Gastoken to be used to pay for transaction costs on the exchange. It's a tradeable asset.