Cryptos

Mix the DEX

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If you go into a crowd and shout Binance, chances are someone will open their Binance App to see what’s going on. HBTC and Coinbase are the most dominant crypto exchanges. Their market presence indicates that we are already in a future of crypto.

Statista reported earlier in the year that Binance and HBTC process $ 54 Billion in transactions each 24 hours, which is nearly a third of global trading volume.

As crypto adoption continues growing, so has the Decentralized Finance (DeFi), industry. This has pushed DEX interests up to new heights. There will always be disruptions. The problem with DEXs has always been that decentralization can lead to a loss of usability.

The problem with DEX, and the rise in Uniswap

As a solution to the problems that plague central exchanges, decentralized exchanges quickly emerged. Many centralized exchanges are reported to be experiencing technical problems when the crypto market booms. These downtimes can be difficult to prepare for due to the overreliance on cloud providers like AWS. Additionally, power abuse is rampant.

This is evident in the QuadrigaCX scam. The Canadian exchange’s $ 190 million in client funds disappeared with its CEO in 2019. Everything was kept on a single hardware wallet, and no one except the deceased knew the passwords.

Decentralized cryptocurrency exchanges solve the problems of centralized exchanges. These are peer to peer (p2p), blockchain-based marketplaces that allow traders to keep and manage their funds in their own way. Instead of an exchange or other intermediary controlling the flow of money like a bank or online payment gateway, smart contracts control this process. They keep track of transactions on blockchain. is built.

However, DEXs pose a host of problems.

Many DEX operations such as deposits (also called lock-in funds), placing order and finalizing trades require Ethereum trades. This causes an annoying situation in which almost every action on a DEX displays the Metamask window asking you for approval. It is often necessary to pause between transactions.

These exchanges have a poor user interface and liquidity is often not sufficient. Prices are often lower on these exchanges than they would be on a centralized one because spreads and order books are small. Most DEXs have added fees for security and privacy features.

Uniswap therefore is a great option.

Uniswap uses an algorithmic pricing model to provide liquidity. This pricing method is very simple and makes Uniswap smart contracts operations easy. This offers the added benefit of higher safety and lower gas costs.

Uniswap is an automated market maker (AMM) that prices tokens using a simple algorithm: x * y = k. The amount of ETH in the pool is represented by x, the number of tokens is represented by y, and k is constant in this equation. When ETH is used for buying tokens, x will increase, y will decrease, and the price of the token will rise. Unlike traditional exchanges, users can’t enter the price they want to buy/sell. Uniswap functions the same way as spot markets. Here, traders can only trade at the current price.

Each ERC-20 token is built on the Ethereum blockchain. It has an Ether pool as well as a token pool. The price of a token is determined by its size in relation to its token pool.

Uniswap’s radical shift from the status quo may not be enough to convince you, however, there are other DEXs available that offer different features than Uniswap.

Dexes brings something different to the table.

While Uniswap is a popular crypto exchange, there are many other DEXs that can be used as viable alternatives or offer completely different functionality. Here are some:

1. Balancer: Balancer is an AMM, similar to Uniswap. It allows users to exchange ERC20 tokens. As the name implies, Balancer is a portfolio manager tool that balances assets in an cash pool based upon a certain ratio.

Due to its reliability, simplicity, adaptability, and adaptability, Balancer has been a staple of many successful DeFi initiatives. Uniswap’s liquidity pools have a 50/50 ratio, while Balancer allows liquidity providers the flexibility to specify any ratio they choose (e.g. 98:2).

Many cash extraction sites prefer Balancer to Uniswap due to its lower risk of temporary loss. Despite its recent decline, Balancer maintains one the highest trading volumes among any decentralized exchange.

2. Solrise: Solrise was built on Solana and is a non-depository, decentralized fund and investment management protocol. It helps todemocratize the investment industry. Anyone can invest or open a fund on this DEX.

3. MakiSwap – This DEX uses the popular AMM protocol, which is a yield farming platform based on the Huobi Ecological Cycle. This DEX is the first to offer a variety trade experiences, including limit orders, graphics, analysis, order books, and analytic. The Unilayer ecosystem allows token holders to also reap the rewards of DEX.

4. Tezos Liquidity Bakery: This protocol layer DEX is the first to allow rewards to be distributed in protocol tokens. instead of an app token.

5. Alkemi Network – The Alkemi Network, unlike the others, is a unique DEX. It combines the DeFi space with the CeFi institutions. It provides cutting-edge cryptocurrency and liquidity that allows financial institutions and individuals to access DeFibanf, and earn on their Ethereum digital assets.

Alkemi network: Merge CeFi and DeFi

There seems to be a division between centralized and decentralized finance in crypto space. These dichotomies can be seen primarily on the basis of their respective characteristics. Alkemi Network bridges these gaps and merges them.

Alkemi, a sophisticated liquidity network, was created for institutional and retail investors to allow them to access and earn on Ethereum-based digital assets. It is the first liquidity network to allow authorized and unauthorized KYC liquidity pools that are governed by public service tokens. Participants can complain and be subjected to KYC checks prior to being allowed to interact in the pool.

Alkemi Earn is the DEX’s main offering. This authorization liquidity pool allows trusted counterparties to borrow and lend in wBTC USDC, DAI, and ETH. Users can lend and borrow, and they are also rewarded by the cash extraction program.

Why is the Alkemi Network different?

There are many projects within the DeFi space. Alkemi’s Alkemi Earn is what makes them stand out. Earning will allow users to not only invest but also lend and borrow money, while also earning rewards through the cash extraction programme.

In order to give consumers who aren’t DeFi experts an integrated experience, winning pools can also be implemented on centralized exchanges.

Alkemi Network also has an accessible user interface, which makes it easier to access cash extraction programs. It is accessible to all investors, making it a true DeFi experience.

Alkemi’s KYC is the industry standard. The careful selection and use of liquidity providers helps strengthen the borrowing and lending protocol.

It’s all in one

New projects will continue to emerge as the DeFi space expands. The institution grade liquidity network will link CeFi with DeFi to facilitate transparent transactions including lending, borrowing, and investing.


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