Decentralized finance (DeFi), has experienced a rapid rise in the past few years. Such an impressive growth can only mean one thing—a rise in decentralized exchanges as well.
Decentralized exchanges will be the future for cryptocurrency trading on Layer 1 Ethereum, despite centralized exchanges being a bit complicated at times.
Although these solutions decentralized are wonderful and have led to a surge in DeFi activities users still have to pay miners more transaction/gas fees.
But these solutions don’t have to be expensive and there are some great exchanges keeping things economical. These are the best DEXes for trading on Ethereum layer 1.
Balancingr was launched as an automated market maker in 2020, allowing DEXes and other DEXes more efficient use of the DeFi space. One of Balancer’s aims has been reducing gas fees for traders on Ethereum and making liquidity pools relatively gas-efficient for new smart contracts.
It aims to streamline and simplify many of its features. The Balancer-Gnosis protocol was created by the integration of Balancer with Gnosis blockchain network. The result of their joint efforts was CowSwap DEX. Users will only need to pay fractions of other traders’ gas fees to access other DEXes. ERC-20 tokens are the only ones that can use this gasless option.
Uniswap can be considered the gold standard in decentralized crypto exchanges. It is currently the most popular DEX with a trading volume of $12.5 million per day in September.
Uniswap also is the largest gas user on Ethereum. Although transaction fees for Ethereum have risen significantly over time, they have made it economically unviable to use less of them.
Uniswap tries, however, to make things affordable for traders. It has three fee levels, depending on whether the pair is a single or multiple, of which there are 0.05% and 0.30%. Liquidity pool fees are payable
Sushiswap was launched as both a cryptocurrency token and decentralized exchange in August 2020. Sushiswap charges traders 0.3% for swaps.
This fee is split into two parts: 0.25% is forwarded to liquidity pool and 0.05% is given to holders of SUSHI token.
Chi is the gas token used by 1inch platforms. It’s burned during high gas prices and minted at lower prices. This allows an exchange to reduce gas costs by at least 40%, even if trades are made through Uniswap and Sushiswap. There are no swapping fees.
DEX Aggregator searches for rates that are the most favorable on several dex. The trade is split by multiple pools in order to get the most tokens from a single transaction. This can be useful for large trades in which multiple exchanges may be used to preserve a favorable exchange rate, while also reducing gas fees.
dYdX serves as a decentralized derivative crypto-exchange. There are no withdrawal or deposit fees on transactions at dYdX. However, users are responsible for any gas costs incurred from withdrawals or deposits.
The platform does charge takers an additional 0.10%, and makers an extra 0.05%. According to a recent survey, dydx’s fees are significantly higher than average fees for contract trading.
DeFi platforms have been receiving the deserved attention and support from consumers and investors.
Although they have been struggling with increasing transaction fees, DEXes that use the Ethereum layer 1, blockchain are still able to provide some of the best decentralized exchanges to trade on. If you’re on the lookout for a DEX you can trust, you can start with Balancer and other DEXes on the list.