DEX in the second world outside of Ethereum

order book

IDEX, dydx, Oasis Trade, Dex.blue, Curvefi, DDEX, Radar Relay, Switcheo, Saturn, Mcafeedex, Leverj, Vite, Token.store (will be closed on June 22)

The most representative of this type of DEX on Ethereum is IDEX, formerly AURA of AuroraDAO, and the existing token IDEX is the platform currency. IDEX, which was brilliant in 2018-19, is a trading market for a large number of altcoins. Looking at the trading volume of IDEX, you can see the rise and fall of DEX. The order-based DEX usage process is similar to that of a centralized exchange. The login method is replaced by a login wallet, and the transaction is completed at the same time as the limit order transaction is issued. When the depth is sufficient, one asset passes through a smart contract and is replaced with another asset and returned to the wallet. The first time you experience this trustless transaction method, you will feel the charm of the blockchain.

Looking at the price of -92%, the highest point in two years, users who insist on being optimistic about DEX will start to doubt themselves. Judging the value of DEX is similar to evaluating centralized exchanges, and the following points will be referred to.

① Exchange Security

② Difficulty in technical realization

③ Trading experience

④ Trading volume

⑤ Team vitality

There were no DEXs before IDEX, and EtherDelta was one of them. The overlord of Ethereum DEX in 17 years realized complete decentralization due to disputes, fraud, and many investors suffered heavy losses. I personally think that with the SEC staring at IDEX in 19 years, restricting users in the United States to enforce KYC, its own product updates are slow, the copycat market is going downhill, the trading volume is off the shelf, and IDEX has lost its aura. It was gradually overtaken by Bancor and Uniswap, which were based on algorithmic reserves in the same period.

By the way, I would like to mention ForkDelta, which was able to compete with IDEX for daily activities. The IDEX listing is still relatively cumbersome. ForkDelta only needs to access the token contract, and it only takes a short time from token casting to trading. The era of ERC20 rampant Not every project party can curry favor with centralized exchanges and IDEX. At this time, ForkDelta has become their best choice, emphasizing that free trading should not be the pursuit of DEX, even junk assets need freedom. Of course, with the passage of time, it has gradually been eliminated by the market. It is an indisputable fact that although there are many online currencies, the trading volume is sluggish.

To sum up this type of DEX, except for dydx, which is a leveraged trading DEX, other DEXs put aside the choice of the second-tier network to start again. The remaining IDEX is struggling to support, and the storage DEX that is endowed with core competitiveness by the algorithm is in the use experience, transaction In terms of depth, enrichment effect, etc., the gap between the two is about to widen. Even with the IDEX 2.0 upgrade, when users are stuck at Generating, the mobile experience is poor, and most users will close the page before trying to make a transaction.

Looking forward to getting a DEX on Ethereum Layer 2 that is comparable to the response speed of a centralized exchange, Injective, Loopring, Leverj, Deversifi, etc...

storage class

Uniswap、Bancor、Kyber、Matcha、UMA、JellySwap、Balancer、Airswap、Tokenlon、Nuonetwork

One sentence describes the storage DEX, a needle-free DEX with rounded curves. Whether it is through liquidity pool incentives, atomic swaps, AMM (automatic market maker) and other technologies, it has finally achieved stable asset liquidity without requiring orders. For example, the constant product market maker algorithm of Uniswap, which currently has the largest trading volume in Ethereum.

The above is the transaction page of Uniswap. The storage DEX does not need to display the order depth and historical transaction records, so it has a simple interactive page. The essence of the transaction is not what I pay and what I can get at what price. If it is suitable, it will be sold, if it is not suitable, it will be cancelled.

When using storage DEX, you need to pay attention to the following issues:

① Liquidity issues

When using it, there will be no needles, and the order will be completed smoothly and completely, but this is under the premise of sufficient depth. When the amount of funds in the entire liquidity pool is not high, once the purchase is made, there will be a huge price slippage. Unacceptable to most traders. While being amazed by the rise of the currency in Uniswap, you can pay attention to the transaction volume and the size of the fund pool on the Info page, so that smart players will not put themselves in liquidity risk.

② Appropriate trading pairs

If you want to sell 100 ETH in Uniswap, your best choice may not be USDT but DAI and USDC. Choosing USDT-ETH transaction will cause you to lose 2% of your funds due to liquidity.

③ Handling fee

The handling fee includes Ethereum’s Gas fee and DEX’s handling fee, 0.3% of DEX’s handling fee and the Gas fee that changes over time, and the handling fee of centralized exchanges ranges from 0.049% to 0.02%. This method can further reduce the handling fee, so DEX does not have an advantage in terms of handling fees. The gas fee is about 0.5$-2$, and the transaction cost of the transaction amount is not included in a single transaction. Therefore, it is not a wise choice to carry out small amount Swap on DEX.

④ Counterfeit currency attack

The threshold for issuing ERC20 with the same name on Ethereum is very low. Before Balancer’s governance token BAL was issued, Balancer Pool Token (BPT) appeared on Uniswap, and it was airdropped to Balancer’s large liquidity holders. Passionate users will buy BPT because they are optimistic about Balancer and lose funds.

We can think about the balance of a DEX. ForkDelta, which is more free, is full of junk assets, and Matcha and Kyber, which are less free, only list high-quality assets and screen for users, but isn’t this another kind of centralized decision?

(Uniswap can freely splice token contracts for transactions)

So when Dex starts to turn to DAO governance, the most basic right of governance tokens is to vote for listing.

If an ERC20 is going to be launched on Compound, whether it will be launched or not is decided by the vote of COMP holders. At this time, those who vote in favor will get a lot of ERC20 airdrops. COMP holders will tend to vote in favor on the human side, and this ERC20 will also be listed on Compound. The first person to eat crabs will be discussed and indirectly affect the price. .

The above is Kyber and the 0x-based Matcha trading interface. From the aspects of interface design, interactive experience, cross-terminal transaction (Walletconnet), etc., it is not without reason that storage DEX is favored by the market.

#Storage order thin front-end design layout is natural / self-adaptive / fast loading speed function layout is chaotic / mobile terminal adaptation is poor

Aggregator class

1inch, dex.ag, shiftly, dex.blue, bamboorelay, cross-chain atomic swap Switcheo, JellySwap.

By aggregating the depth of other Dex and protocols, bringing together multiple DEX (Kyber, Bancor, Uniswap, Oasis, Curve, 0x) and its own capital flow pool to provide users with transaction services seeking the best transaction price.

Taking 1inch as a representative, while looking for the best price for trading 0.1 ETH, estimate the Gas fee for initiating the transaction. At this time, after using Kyber to generate a handling fee of 4$, the cost performance of this transaction is very low.

Finding the best price for transactions in each DEX can also be queried through Dexindex. The following is the best way to exchange 10,000 DAI for planning to use DEX.

When you are ready to convert 100 ETH to KNC, Matcha helps you find the optimal choice through a combination of three DEXs, 4% through 0x, 42% through Uniswap, and 54% through Kyber.

DEX is an important infrastructure in the Defi ecosystem. With automatic market makers and a better experience, storage-style DEX devours the order-thin market. The best way to judge whether a DEX is worth investing in is to experience it yourself. While being overwhelmed by the Defi craze, you might as well experience it, and you will find that Defi is not that complicated.

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Debank data

Combined with the transaction volume, number of transactions, and number of users to look at Ethereum’s DEX, the total number of Uniswap users with the highest DEX transaction volume does not exceed 4,000, and DEXs with less than 100 users can also trade nearly one million dollars a day. There are also DEXs with a few digit users that are taking advantage of the trend.

Options DEXs that require higher professionalism also include Opium, Opyn, Potion, etc., which are not suitable for ordinary users.

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TRON's DEX

TRON TRON, TRON is big, where there are hotspots, there is TRON. The DEX of TRON can be described as an accelerated version of Ethereum. Multiple DEXs are produced in a very short period of time and the competition is accelerated.

The number of TRON DEXs that have ever appeared is as many as thirty-five. The early tronwatch, Kiwidex, Gocdex, KyubeyDex, etc. disappeared with the cooling of the TRON TRC20 market, leaving only TronTrade, PlayerRoyal, and NewDex, and TrxMarket was replaced by Sun Ge Acquisition promoted to PoloniDex.

All of the above are order-thin DEXs without exception. According to DappReview data, PoloniDex, the direct DEX of TRON, does not lead TronTrade. The average daily trading volume of TRON DEX is 350,000 US dollars, the minting volume of USDJ is 4.2 million US dollars, and the circulation of USDT is 2.88 billion US dollars. is not a match. It shows that TRON's stable currency ecology has not formed a DEX market of sufficient scale.

Recently, Oikos has moved Ethereum’s Uniswap to TRON, synthetic assets, and the SNX gameplay may be successfully replicated. Ethereum’s SNX did not capture Uniswap’s 0.3% transaction fee, while Oikos has made an economic closed loop on TRON, mint, Swap and exchange are their own, and liquidity incentives and reverse tokens can stimulate holders to participate in the project. The size of the TRX/sTRX fund pool is small, currently 864512.315 TRX + 804707.4552 sTRX.

The difference between TRON and Ethereum is that there are fewer high-quality TRC20 assets (except USDJ and USDT), and lottery tokens are gradually untraded as turnover and dividends decrease. TRC20 that can be accepted by most is as follows:

① BTT acquired BitTorrent for issuance, and recently stopped airdrops. File storage BTFS incentive tokens and Dlive app reward tokens can be used for staking. A small number of TRC20 listed on the three major exchanges at the same time have a market value of 65 million US dollars.

② WIN is a lottery leader, a dividend token with a market value of 24 million US dollars.

③ JST USDJ governance token, the three major exchanges have not opened trading pairs for a long time, and the circulating market value is 7.5 million US dollars.

④ SOUL blockchain game ChainZ game tokens, with a circulation market value of 120 million US dollars.

⑤ OKS Oikos Defi application token, with a total market value of 250w USD, and a low circulation rate.

Most people will never touch other TRC20s. Up to now, the total number of TRC20s has reached 6301, but less than 10 are known and used. In contrast, there are as many as dozens of projects that have moved to Binance Chain. Perhaps the attraction of P-net + Dex tokens can have an effect on some project parties. Migrating project tokens to TRON is cheaper than supporting similar projects from scratch, and the effect is better.

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EOS DEX

Up to now, the number of EOS Token is 5143. Early EOS is also DEX everywhere. So far, there are 32 DEXs developed based on EOS. If you are an early EOS user, you can listen to FINDEX, BTEX, Chaince, AKDEX more or less Used it, and now these are out of operation.

Counting with your fingers, there are only Newdex, WhaleEx, and Switcheo left in the DEX of EOS. All three are cross-chain Dex and have realized their own cross-chain solutions.

Dappreview data

Newdex takes the lead relying on the average daily trading volume of USD 18M (including Swap trading volume), and the most active EOS/USDT trading area calculates that the average daily trading volume should be around USD 100,000-150,000.

Newdex's Swap belongs to the storage DEX of the constant product market maker model and has 10 trading pairs. At the same time, a cross-chain DEX with side chains appeared, but the transaction volume was also negligible. Some projects that generate stable coins by staking EOS mortgages have emerged, but the scale and influence are not enough to support the Defi ecosystem. Of course, EOS's own Rex is the largest Defi application on EOS.

At present, the more promising one is equilibrium, which cooperates with polkadot and ptoken. The EOS mortgage scale is 4 million, and the collateral of about 10 million US dollars is 273w EOSDT minted, and the system mortgage rate is 385%.

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NEO's DEX

The NEO 3 upgrade is imminent, and the built-in oracle of the public chain seems to have laid the groundwork for Defi. It is unknown whether NEO will put it back on Defi. Judging from the official information, NFT will be the next track that NEO will pay more attention to, and NFT+DEX can also become a market.

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Dappreview data

Switcheo was born in the early days of the EOS mainnet launch. After swapping from Ethereum's SWH to NEO's SWTH, Nash was looking for a gap where compliance could not be launched. At this time, the Ethereum Dex is going downhill, and the outbreak of Token in the early stage of the EOS main network is in urgent need of Dex to carry the circulation. Switcheo made the wrong choice to develop the ETH-based DEX first. The downturn resulted in unsatisfactory trading volume.

The trading needs of NEP5-based projects are not enough, including Zeepin, which is seeking a centralized exchange and later NEO-based projects. Soul, LRN, TNC, QLC, and DBC have begun to abort and cannot bring ideal trading volume to DEX, so they can only continue to develop For EOS-based DEX, it is a pity that after the completion of development, EOS Dex has been occupied by WAL and Newdex, and Switcheo, which has a weak marketing, has not even cooperated with the mainstream EOS wallet in the market.

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BNB DEX

Binance Chain is developed based on Cosmos. As the first exchange public chain, Binance DEX has attracted a large number of project parties. In order to compete for the opportunity to list Binance through DEX, Binance Chain has 1,113 BEP2 Tokens, but only 132 can be listed on DEX, and the lucky ones selected into Binance main site through this method are only two Ankr and Tomo.

The Binance DEX fee is 0.1%, and it is as low as 0.04% if BNB is used.

Without liquidity incentives, free coin listing incentives are a good idea, and this method is expected to be repeated on the Binance Smart Chain.

Rune, who has performed abnormally on Binance Chain recently.

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DEX of other public chains

TomoDEX

Order thin, with the help of Swap Bridge, to introduce ETH, BTC to Tomo, the current transaction volume is low, and the transaction depth is poor.

YAS Codex

Through AMM, no-deep trading, similar to Synthetix's iETH and iTRX transactions, can introduce more price-marked indices.

Coinex DEX

DEX of Coinex exchange public chain

Saturn Network

ETC-based DEX

Zilliqa

Switcheo will develop a DEX for Zilliqa this year

Polkadot

The gap between other public chains and Ethereum in DEX is not small. It can mainly catch up in high-quality assets, cross-end protocol (WalletConnet), storage DEX, liquidity incentive DEX, etc. Once Ethereum solves the congestion problem, other public chains It will be far behind, and before ETH2.0 is launched and Layer 2 is not popularized on a large scale, it is an opportunity for other public chains.

The development of the Defi ecosystem is by no means the result of supporting one or two Defi applications. Dex, Stablecoin, Margin, and Lending are indispensable, and the four applications are interlocking.