As cryptocurrency becomes more of a standard trading medium for investors around the globe, decentralized exchanges (DEXs) have arisen to support their buying, selling, and trading. Cryptocurrency has soared over recent years, reaching a $1.74 trillion USD total current market cap of March 2022.
The primary method of trading cryptocurrency is through one of the many DEXs that are currently on the market. A DEX relies on smart contracts to function, making a note of transactions in the blockchain instead of listing them with a centralized entity like a bank or a government. Due to the use of blockchain technology, DEXs have become the go-to platform system for users that are looking to buy and sell cryptocurrencies.
Within this article, we'll be taking a look at the top 3 DEXs that are making a name for themselves in 2022. Looking at more innovative models, we'll be suggesting three companies that are helping users to make the most of their cryptocurrency investments.
We'll cover:
- TimeChain
- Ardana
- Dexalot
Let's get right into it.
Timechain
Timechain is a decentralized finance service that helps users understand how cryptocurrency works and guides them towards putting it best to use. This digital asset management platform allows users to leverage the digital assets that they already have and increase their returns over time.
While including traditional financial services, Timechain also moves into cryptocurrency, providing everything that a user could possibly need when it comes to financial investing. Rather than one product, it offers an ecosystem that supports every function the typical investor will seek when looking for a comprehensive financial platform solution.
Currently, this platform is also the only Canadian DEX that complies with regulations from both the Financial Transactions and Reports Analysis Center of Canada (Fintrac) and the Autorité des Marchés Financiers (AMF). Due to this, it is one of the most stable platforms which has high degrees of security.
TimeChain centrally focuses on two main products, the Timechain application, and the Timechain swap. Each of these provides a different range of functions that allow the average user to get more from their crypto.
Timechain App - Within the application, users can send crypto and fiat currencies to other people via the chat function, making this a great choice for those that need to quickly transfer money to friends or family. Additionally, even by just holding certain cryptocurrencies in the application, the Timechain wallet will begin to accrue interest, further benefiting those that select this DEX.
Timechain Swap - Another large feature of Timechain is Swap, which is a DEX aggregator. Based on the Fantom network, users of TimechainSwap will be able to swap tokens when they spy beneficial rates. While strong by itself, this function also has future plans to connect with Ethereum (ETH) and Binance Smart Chain (BSC).
Alongside all of the available features, Timechain has been an attractive choice for those seeking a DEX platform as its team has already set in motion plans for significant future development. From NFT collection compatibility to the construction of a Timechain metaverse, everything that an investor interested in blockchain capabilities could need is included, or soon to be incorporated, into this DEX.
Ardana
Founded in early 2021, Ardana came to fruition after Ryan Matovu and his team of DeFi and Wall Street experts analyzed the DeFi ecosystem and saw the vitality of DEXs in the growth of DeFi. Transactions, exchanges, stable coin protocols, and lending/borrowing protocols directly drove the DeFi market, with DEXs being the central mechanism that investors could use to access these features.
Ardana was launched as a DEX stable asset liquidity pool and asset-backed stablecoin protocol that was built on Cardano. Cardano is one of the world's leading blockchains, having seen dramatic success due to its proof-of-stake scalability and security.
One of the central factors that have driven people to use Ardana is the fact that users do not need to convert ADA into stable currency in order to purchase any Cardano assets. Instead, users can deposit ADA into their personal Ardana vaults and get a percentage value back as interest. With this, they'll be earning a dUSD loan, which can be returned for ADA when the user desires.
Ardana also has a range of staking opportunities, allowing users to directly benefit from any cryptocurrency that they hold in their accounts. With high yields and attractive returns, the staking portion of this DEX has seen a high uptake.
Alongside this, as there are low-cost exchanges between different stablecoins, this platform mirrors the exchange of fiat currencies in many ways. With this, users of Ardana can expect a great level of stability from the platform.
Another integral feature of the platform is Danaswap, which is an AMM (Automated Market Maker) DEX that allows users to access multi-asset pools at the same time. Within these liquidity pools, users can get up to 50-100x capital efficiency, allowing users to do more with their finance. The compatibility between Danaswap and the stablecoin-stablecoin conversion rates ensures that traders can capitalize on higher yield farming opportunities.
An additional element that makes this a notable DEX to follow for 2022 is that they recently announced that they are seeking to bridge L1 ecosystems Elrond and NEAR into Cardano, which will further amplify the range of features that users of any of these three ecosystems can access.
With very small fees, a comprehensive and sustainable ecosystem, and the ability of users to access stable liquidity on Cardano, Ardana has quickly made a name for itself, allowing users to have even more control of what they're spending on DEXs.
Dexalot
Dexalot is aimed at bridging the gap between decentralized and centralized exchanges, embedding features from traditional finance without compromising the best elements of decentralization. Based on the Avalanche platform, users can trade ERC-20 tokens on the C-Chain against AVAX from the blockchain's native currency on Dexalot.
With decentralization at its core, Dexalot doesn't collect any user information, avoiding cookies and user tracking to provide a completely anonymous experience. Its core values of transparency also feed back into its core blockchain technologies, being an open-source service where users can see the logic behind the application. While many centralized exchanges hide behind closed-code, the openness of Dexalot further demonstrates the extent to which it is committed to continuing the core values of the blockchain - transparency, and anonymity.
With a focus on innovation, Dexalot has developed three core features that make it stand out from similar DEX platforms:
Limit Orders While On-Chain - Within Dexalot, users are able to set the limit and size price for all of their trading orders. If their order matches with an existing order on the books (when discussing price), liquidity is removed to instantly execute the order. However, if there is no existing order, a new order will be added to the market. Within this, market orders are awarded full functionality, allowing users to trade exactly how they would like.
User-First Governance - Loyalty aligns directly with Dexalot's central characteristic of transparency. Within this platform, Dexalot allows users to get involved with governance, boosting community participation and driving community ownership.
Avalanche-Built - While two of the major benefits of Avalanche are its speed and finality, previous DEXs on this platform have often had limited adoption and lots of risk. By focusing on placing emphasis on where previous DEX projects have failed, Dexalot has started to operate on a C-Chain, seeking to boost its user experience.
Always attempting to put the user experience first, this platform is definitely one to keep an eye out for. Especially if they migrate their technology to a subnet, this platform will be one of the biggest names in the DEX marketplace.
Final Thoughts
The best point of entry into the world of cryptocurrency is through a decentralized exchange. Within a DEX, you'll be able to get access to trading options, buying, selling, lending, and staking pools. No matter if you simply want to buy and hold cryptocurrency or are looking to get involved in liquidity pools, the three DEXs that we've selected will be the perfect entry point for you.
Each of these has been selected due to its mix of innovative features, low rates, and blend of security and stability. Whether you change to one of these as your central DEX or just keep an eye on them, we're likely to see more developments from these three exciting projects over the rest of 2022.
