The Astounding Progress of DEXs

5 Innovative Ways DEXs are Evolving

From fueling the liquidity behind the DeFi space to challenging how user-friendly digital finance can be, DEXs have made waves in the crypto space.

We’ve gathered 5 of the most compelling ways that DEXs have evolved to become the valuable DeFi services they are today.

1. It’s never been easier to build and run your own decentralized exchange.

With DEX protocols like 0x, Hydro Protocol, and Loopring, building and launching a decentralized exchange can be done within a matter of minutes.

Hydro Protocols website claims a DEX can be launched “in minutes”.

This lowers the barrier for new market entrants that want to compete in the decentralized exchange space. The more competition there is, the more innovative DEXs become; this brings the world of decentralized finance closer and closer the mass market by creating an incentive for DEXs to continually improve to stay ahead of others.

2. DEXS are enabling DeFi tools to access liquidity without making a trade-off for decentralization.

A great example of this is dydx sourcing liquidity from Radar Relay, a DEX built on top of the 0x protocol, to enable margin trading.

This is huge for the decentralized finance space as centralized exchanges have been used for liquidity until now. DEXs are eating up market share from centralized exchanges in new ways and we can’t wait to see more projects adopt DEX liquidity sources.

3. Tap into an abundance of decentralized liquidity with DEX aggregation.

By aggregating decentralized exchanges, services like Totle allow DeFi projects to access the combined liquidity of the top DEXs in the space.

A unique feature of Totle is that it automatically routes orders to the best available prices across DEXs. This makes building decentralized swapping functionality into DeFi services as easy and profitable as possible.

4. Lock up funds in smart contracts to earn interest on fees for supplying DEX liquidity.

With a MetaMask wallet, Uniswap’s liquidity pool, and a few clicks, you can passively earn crypto directly by locking up your funds in a smart contract.

Uniswap charges a fee for all trades made on its platform, which is used to reward liquidity providers. This incentivizes anyone to participate in the DEX market without requiring them to be a developer or a trader: a possible lead on attracting the mass market. To easily keep track of how much you’ve earned from fees, use DexWallet’s convenient monitoring interface.

5. Groundbreaking UXs.

In a huge improvement from the early days of DEXs, developers have created user experiences that now compete with centralized solutions. Two great examples are AirSwap 2.0’s visually appealing interface:

And Totle Swap’s simple “trade this for that” interface:

What’s Next?

When we told crypto users that in two years decentralized exchanges will rival centralized exchanges in utility, features, incentives, accessibility, and user experience, we were told we were being a bit optimistic. Now, after seeing how quickly DEXs gained traction throughout the crypto community, we’re certain you’ll agree that DEXs are fierce CEX competitors.

DEX Growth

Kyber Network alone is beginning to generate tens of millions of USD in traffic monthly.

This is evidence that the decentralized exchange market is undergoing a rapid expansion. DEXs are stepping up to take over facilitating the exchange of cryptocurrency online. Crypto users and developers are clearly excited about the prospect of exchanging cryptocurrency without giving up custody to third-parties — a sentiment that’s at the core of the blockchain ethos.

Ready to Start Building with DEXs?

The easiest way to plug decentralized liquidity into your product is to use the Totle API. Totle manages the entire decentralized liquidity side for you by aggregating top DEXs and automatically routing orders to the best prices on the market. Get all the benefits of decentralized finance without needing to manage it.

Get Started

To start using Totle, access the API here: Build with Totle

If you have any questions, email us at hello@totle.com

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