Polygon ecosystem has seen rapid development with at least one DeFi / NFT project joining daily. The MATIC token prices have responded to the same, multiplying rapidly over the last couple of months. However, the rising fees on Ethereum and the high demand for assets swaps on Uniswap have meant one more thing – the decentralized exchanges (DEX) on Polygon MATIC L2 are becoming more popular also. What are the top 5 DEX on Polygon MATIC?
What is a Decentralized Exchange DEX?
Decentralized exchanges, also referred to as DEXs, are peer-to-peer marketplaces that allow crypto traders to transact with each other without boundaries. Like almost every idea behind the Blockchain, DEXs are decentralized and foster financial transactions that aren’t conducted by banks, intermediaries, or any third-party affiliation. One of the basic differences between Central Exchanges and DEXs is that, while central exchanges allow users to exchange between cryptocurrencies and fiat money, DEXs only allow trade between two cryptocurrency tokens.
Another important difference to note between these two important Blockchain service providers is that, while CEXs transactions records are stored in their internal database, DEXs transaction records are visible and recorded on the Blockchain. Examples of DEXs include Swapzone, PancakeSwap, dYdX, and Raydium, and the Ethereum Blockchain hosts a majority of them. Like central exchanges, the growth of DEXs has been astronomical in the last year, as the Defi tools have continued to prove their importance to the growing Cryptocurrency space.
Without further ado, let’s ump int the top 5 DEX that work specifically on the Polygon Network!
5. Anyswap (ANY)
Anyswap launched back in July 2020. It is a DEX that allows users to swap tokens from various platforms across different mainnets. It is one of those few DeFi projects that facilitates cross-tokens swap and trade. Many big names already implemented Anyswao in their internal protocols such as XRP, Litecoin, Tether.
The code of the platform is fully open-source, which makes it a truly decentralized platform. The Fusion Network powers Anyswap, and helps in private key sharding to guarantee the safety of the crypto assets on the platform. ANY is the native token of the platform. It is a governance token, which allows holders to determine which tokens to be listed on the Anyswap DEX.
4. Firebird Finance (HOPE)
Firebird Finance is a 3-in-1 Defi platform currently thriving on Polygon and offering immense bespoke services to many users. It is a yield aggregator, a vault, and also poses as an exchange. The DeFi platform not only guarantees rewards for its users but also optimizes their experience. Its swap page with yield farming features also ensures that traders and yield farmers earn rewards. The native token of the platform is HOPE, and its holder also receives a reward for staking it. Firebird Finance is also popular for incorporating technology into its protocol, a unique feature of the AMM. At the time of writing, the TVL as multi-chain volume in the DEX is $6.3 Billion.
3. Polycat (FISH)
Polycat is basically a yield farming project, where users can earn more cryptos by simply lending their cryptos. The project is currently known for its easy-to-use platform for token swapping and yield farming protocol. It is a top contender for Dapps using the Polygon network, with a total value locked of USD 12.6 Million to-date.
SushiSwap – a declared fork of Uniswap provides decentralized exchange AMM functionality. It utilizes orderbook-less swaps between different assets, using liquidity pools and having no direct sellers. The users earn liquidity fees by providing assets to pools. It has an automatic price determination mechanism through smart contracts. This eliminates custody/insolvency risk, and is now available on Polygon MATIC, to take advantage of low fees and fast processing.
1. Uniswap (UNI)
Uniswap is a decentralized cryptocurrency exchange. Moreover, UNI is the native cryptocurrency of the Uniswap exchange. Decentralized crypto exchange gives users the ability to make trades and transactions without any third-party intermediaries regulating them.
Decentralized exchanges have the advantage of being entirely transparent and peer-to-peer. This means that the Uniswap exchange is completely collectively managed and community-run.
Moreover, like other decentralized exchanges, Uniswap is anonymous. You don’t have to provide the site with any kind of personal data to be able to trade. All you have to do is connect your crypto wallet and you’re ready to go.Top 5 DEX On Polygon MATIC