What are the best DEXs in 2024?

What are the best DEXs in 2024?

Using a decentralised exchange (DEX) for crypto trading can be a great alternative to using some of the more traditional centralised exchanges (CEXs) such as Binance or Coinbase. While DEXs are generally more complicated, users are contributing to a wider, and more sustainable ecosystem, as well as benefiting from earning by participating in liquidity pools.

In this article, we outline six of the best DEXs that are available on the market in 2024, and which ones might be right for you.

What is a DEX?

A decentralised exchange (DEX) is a type of exchange that uses crypto liquidity pools to create liquidity. 

In simple terms, there are two main benefits of using a DEX:

1) Earning passive income

2) Increased security and decentralisation

As the liquidity is supplied by all users, instead of one central authority, a DEX allows for the liquidity to be held in secure liquidity pools, and for the users to earn money from this.

This is the basis of most DEXs, and if you are interested in using a DEX, here are six of the best DEXs currently available.

Six of the best DEXs you can use

Each DEX has its own benefits, and you should thoroughly research any cryptocurrency platform before investing your money. Some DEXs are catered more to beginners and some more to professionals, so it’s important to pick a DEX based on your own ability.

1. Uniswap

Perhaps one of the most well-known DEXs is Uniswap, which is credited for being one of the early pioneers of the automated market maker (AMM) and the DEX, rivalling the dominant CEXs in the space at the time.

Created in 2018, Uniswap operates on the Ethereum blockchain and allows users to trade ERC-20 tokens directly from their wallets, without the need for intermediaries. 

Uniswap is a user-friendly platform that aims to make exchanging cryptocurrency accessible. The platform has been through three version upgrades, with the latest Uniswap v3 offering concentrated liquidity in the form of non-fungible liquidity pools. In late 2024, Uniswap introduced Hooks, which is another novel concept by the DEX, allowing users to create their own smart contracts.

2. Sushi

Sushi (formerly known as SushiSwap), originally came about as a fork of Uniswap. Sushi values user-friendliness, and has developed into a highly accessible platform that is ideal for beginners. Sushi offers token swaps, yield farming, staking, borrowing and lending. 

Sushi provides an accessible alternative to many DEXs, introducing yield farming in a way that is easy to understand with its BentoBox, and also a large focus on community development, making Sushi one of the best DEXs available today.

3. PancakeSwap

PancakeSwap was founded in 2020 by a group of anonymous developers as a fork of Uniswap at a similar time to Sushi. The DEX operates similarly to Uniswap in many ways but is instead built on the Binance Smart Chain (BSC). At the time, this meant that PancakeSwap was a lot faster than other DEXs, as Ethereum’s popularity meant that it was struggling with transaction speeds. BSC provided a cheaper and faster alternative.

PancakeSwap has a big focus on user-friendliness and gamification, introducing lotteries and NFTs into the platform. It represents a type of DEX where user participation is valued highly, as well as introducing beginners into the DEX space. It is also popular for more experienced traders looking to avoid the higher gas fees of Ethereum.

4. KyberSwap

Towards the more advanced end of the scale, KyberSwap is a multi-chain DEX aggregator, which means that it uses liquidity from various other DEXs and liquidity pools in order to facilitate trades.

KyberSwap’s algorithm will either split the trade across multiple exchanges, reduce slippage by choosing the optimal trade path, and will also be able to compare rates from various sources in real-time.

This advanced model means that KyberSwap is able to offer rapid trade execution with much lower slippage than other DEXs.

It also has a wide range of tokens and allows users to trade directly from their wallets without needing to deposit into the platform, which further increases the security. Additionally, KyberSwap integrates with various decentralised finance (DeFi) protocols, allowing users to easily access liquidity across the DeFi ecosystem.

For anyone seeking a DEX with efficient trading times and a wide range of tokens, KyberSwap is a fantastic option.

5. Balancer

Balancer is another innovative DEX that operates on the Ethereum blockchain. A unique feature of Balancer is that it uses an AMM system to simplify the management of your portfolio. Users can create customised liquidity pools of up to eight different cryptocurrencies and determine their weights in the portfolio. The AMM will then rebalance token prices as the markets change (hence the name Balancer) and will ensure that the weighting stays the same in your liquidity pool.

This allows more advanced traders to set up highly efficient portfolio management, as well as earn fees from the trades executed like a regular DEX. This unique approach to liquidity and versatility makes Balancer a popular tool for traders.

6. Bancor

Bancor is a DEX that is a little different to the others on this list and is more of an ecosystem of decentralised protocols. Rather than being one DEX where users can trade, Bancor is essentially an umbrella for several products, listed under one banner of ‘Bancor’ and all based on the BNT.

Bancor’s unique feature is that it offers single-sided liquidity provision, which means that users can enter liquidity pools with just a single token when normally a pair is required. The idea of this is to reduce exposure to impermanent loss, which can be an issue for other DEXs. Bancor also implements Impermanent Loss Insurance which works by allocating around 15% of all trading fees into a unique pool in the event of impermanent loss.

Conclusion

Choosing a DEX to either trade or stake your crypto can be a challenging decision, but we hope with our list that you have a better understanding of DEXs and how to use them.

For those interested in a smoother and more beginner-friendly experience, DEXs such as Sushi and PancakeSwap are ideal choices. More advanced traders looking for optimal trading rates and more complex tools might want to consider KyberSwap or Balancer.

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Author

Caleb is a financial copywriter with a specialisation in fintech and forex. Former copywriter at Barclays and Paysafe. Contributing writer for LiquidityFinder. You can message Caleb here.