Ethereum is by far the most important blockchains with smart contracts and by far the leader as the basis of decentralized apps and applications. This also includes the decentralized exchanges (DEX), which are largely based on the Ethereum blockchain. What are the best decentralized exchanges (DEX) on the Ethereum Blockchain in 2022?
In this article, we describe the 5 best decentralized exchanges (DEX) on the Ethereum blockchain in 2022.
What are decentralized exchanges (DEX)?
Decentralized exchanges (DEX) are trading venues for cryptocurrencies that have a completely decentralized structure. Trading partners can trade with each other directly and without an intermediary. The exchanges are based on a peer-to-peer principle. The DEX work on the principle of the blockchain.
DEX use blockchain structures such as those of Ethereum to make financial transactions completely decentralized. As a result, the decentralized exchanges offer complete freedom and independence in financial transactions. This is what makes the DEX so attractive, unlike central crypto exchanges such as Binance.
What is Ethereum (ETH)?
Ethereum is currently the second most important cryptocurrency behind Bitcoin. Behind the cryptocurrency is a blockchain network, which has created a huge ecosystem through the availability of smart contracts. As a result, Ethereum currently has the second largest market capitalization among all cryptocurrencies.
Ethereum is by far the most important blockchain as the basis for decentralized financial services (DeFi) and non-fungible tokens (NFTs). In the next few weeks, Ethereum should make its network significantly faster and more efficient by completing the Ethereum 2.0 update, which should further consolidate Ethereum’s leading position in dApps.
Why use DEX Ethereum as a basis?
Ethereum was the first blockchain to offer smart contracts. As a result, Ethereum has been able to build a huge ecosystem in recent years. Most decentralized exchanges started with Ethereum as the foundation, which provided the network with the necessary infrastructure and reliability. In recent years, Ethereum has had major problems with transaction costs and transaction speeds. But with Ethereum 2.0 these problems should be solved.
Ethereum has been recognized by its pioneering role in the field of decentralized applications. The reputation of the network is enormous, so that most dApps and most DEX continue to rely on Ethereum as a reliable option with a high reputation.
What are the best DEX on Ethereum 2022?
Below we would like to introduce you to the best decentralized exchanges (DEX) on Ethereum in 2022:
Uniswap is the most popular decentralized exchange (DEX) on the Ethereum ecosystem. The popularity of Uniswap continues unabated in 2022. Due to its high awareness and popularity, Uniswap is the first choice for many new projects based on Ethereum to use launchpads there.
On Uniswap, as a user, you can provide liquidity to earn passive income through your crypto ownership. Furthermore, you can also receive your own token from Uniswap, UNI, as a reward. At the moment Uniswap has two versions: V2 and V3. The trading fee for V2 is fixed at 0.3%, for V3 they vary between 0.05%, 0.3%, and 1%.
Sushiswap is another DEX developed on Ethereum. This is an extension of Uniswap. Crypto assets can also be lent, staked and farmed here. Furthermore, Sushiswap has expanded to numerous other blockchain networks.
The trading fee at Sushiswap is 0.3%. 0.25% of this fee is paid to the liquidity providers and 0.05% to the SUSHI token holders. In addition to the share of the fees, the provision of liquidity will also receive the SUSHI Token as a reward.
3. 1Inch Exchange
1Inch Exchange is another DEX based 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 provide any personal data.
1Inch is a DEX that has more liquidity available than most decentralized platforms. Furthermore, the prices at 1Inch are among the best on the entire market. The platform does not take any fees for trading, withdrawals and deposits.
Curve Finance is the next DEX based on Ethereum, and most recently has also integrated Fantom and Polygon for cost-efficient transactions. In addition to swapping, investors can earn money by providing liquidity on the platform. The platform is characterized by a high level of transparency about possible risks for users.
The fee for trading is 0.04% of the transaction amount. The platform uses its own governance token called CRV. This also makes the platform a Decentralized Autonomous Organization (DAO).
The last Ethereum-based DEX we want to address is Balancer. On the platform, you can swap ERC20 tokens or put them in a liquidity pool to earn rewards and passive income in return. The trading fees on the platform are variable.
Although Balancer is based on Ethereum, the platform can effectively reduce gas fees. Each trader earns the BAL token with each trade, which reduces the effective transaction costs in each case. Furthermore, Balancer offers a relatively high liquidity on the platform.