Polygon is a leading blockchain that is home to multiple DEXs. The leading five have the highest 24-hour trade volume and offer users unique features that they can leverage to earn more cash. In this article, we will evaluate five of the best Polygon DEX based on many different factors and analyze each’s benefits and merits. We will also find breakdown pointers on the number of tokens and trading pairs supported and the top-ranking trading pair you can focus on in each DEX.
- 24-Hour trade volume for each DEX
- Outstanding benefits that each DEX offers
- Additional features for each DEX
- Information about the Polygon network
- A summarized analysis of the potential of Polygon DEXs
Top 5 Best Polygon DEX in 2023
To determine the best Polygon DEXs to place in this listicle, we evaluated these DEXs on many factors, such as trading volume, trading fees, the number of tokens supported, and the privacy and security of the exchanges. In this article, we mainly collect data based on DefiLlama which is the largest total volume locked (TVL) aggregator for Decentralized Finance. Therefore, it was the most resourceful site for this ranking. Here are the top five Polygon DEXs ranked by our experts.
|#||DEX||Symbol Token||24h Trading Volume||TVL (Total volume locked) in all chains||Most Active Trading Pair|
SushiSwap is one of the most high-promising DEX on Polygon. This decentralized exchange has been around since 2020. It is home to a minimum of 436 coins and 679 trading pairs.
As a self-custodial website, SushiSwap is famous for the range of services it offers. The platform’s users can easily trade, stake, lend, or explore elastic yield farming features to earn extra passive income. Besides these many money-making features, here are a few other benefits of decentralized trading on the SushiSwap DEX.
- DeFi Platform Payment Solution: SushiSwap users can automate their DAO salaries and vesting schedules using the Furo streaming feature.
- Sushi Token Vault: This underlying vault platform allows the exchange to provide additional yield over a pool of tokens. This will enable users to get optimized deposits, withdrawals, and flash loans, among other benefits.
Another DEX on Polygon with impressive trade volume is Balancer DEX. Although it’s not very popular, Balance has been in the crypto market since 2020 and supports a wide range of tokens—at least 77 coins and 105 trading pairs.
The main outstanding feature of the Balancer Exchange is its focus on improving DeFi liquidity pools and yield farms. Balancer offers its users multiple ways to earn yields from their crypto investments by opening up numerous trading pools. Here are several other unique features you will find on Balancer DEX.
- Automatic Portfolio Management: Balancer automatically manages portfolios compatible with Ethereum Virtual Machines (EVMs) using the Automated Market Maker (AMM) feature.
- Zero Starting Capital For Arbitrage: Balancer users can buy tokens on one exchange and sell them on another within a short period without making initial investments, as it happens on most DEXs.
- Low Fees: This exchange aims to reduce transaction costs as much as possible.
Curve Polygon is a leading Polygon DEX aggregator. The protocol is one of several Curve versions, including Curve Ethereum, and Curve Arbitrum. Presently, Curve Polygon is home to 19 coins and 32 trading pairs.
The exchange interconnects several blockchains with multiple liquidity sources, giving users a one-stop shop for crypto trading. As an aggregator, Curve Polygon allows users to use a yield aggregator to analyze cross-chain prices and determine the best deals, a feature that makes it popular in the market. Here are other outstanding features of the Curve Polygon exchange.
- Low Slippage: Because Curve was originally designed to trade stablecoins, the platform offers investors low slippage for their trades. This lowers the risk of making losses on a particular transaction.
- Top-notch Security: This decentralized exchange uses thoroughly audited smart contracts to run its operations. Besides that, it offers bug bounties to encourage developers to find and suggest fixes to security loopholes in their systems.
QuickSwap is one of Polygon network’s leading liquidity hubs. This next-generation layer 2 decentralized exchange launched in 2020 and has grown to support at least 488 coins and 1015 trading pairs.
The platform’s popularity stems from its incredibly affordable transaction fees. Quickwap users pay close to zero gas costs and enjoy a broad combination of ERC-20 standard token swaps. Besides that, the platform offers users several other benefits, as listed below.
- Buy Crypto Using Fiat: On Quickswap, users can buy cryptocurrencies using real-life money. The exchange supports multiple payment systems, including Apple Pay, bank transfers, and credit cards.
- Rewards for Liquidity Providers: Quickswap rewards its liquidity providers with 0.25% of the fees charged on every swap they contributed to the liquidity pool. Additionally, it offers a single staking pool, called Dragon’s Lair, for the native token Quick. Investors in this pool get 0.04% of all trading fees.
- Pay Bills Using Crypto: Quickswap users can also pay mortgage and credit card bills using the Spritz application directly from any Polygon compatible wallet.
The leading DEX on Polygon is Uniswap. The Uniswap protocol comes with several distinct versions, including Uniswap Arbitrum One, Uniswap V2, Uniswap V3, and Uniswap Polygon. Uniswap Polygon came to life in 2021, and currently trades at least 162 coins and 511 trading pairs.
Despite its many versions, Uniswap is a wholesome crypto trading platform. The variations only exist to enhance the platform’s capabilities. Because of these multiple variations, Uniswap is known for its impressive stability when it comes to swapping tokens and creating dApps. Uniswap Polygon provides traders with unique opportunities to earn extra cash from trading and supports blockchain developers in creating monetizable crypto applications. Other than that, here are a few other benefits that Uniswap offers.
- Ease of Access: One of Uniswap’s best features is its registration-free sign-up process. This no KYC crypto exchange does not demand registration, so all traders need to gain access is to connect their crypto wallets.
- Liquidity Mining: The platform allows users to earn extra income when they provide liquidity. Liquidity miners deposit funds into a given crypto pool and earn commissions for every trade made in that pool.
- User-friendly Interface: Uniswap’s trading interface is remarkably intuitive. This makes it easier for beginners to navigate and trade on the platform.
What is Polygon (MATIC) network?
Polygon (MATIC), also known as the Polygon network, is a blockchain designed to scale up the Ethereum blockchain infrastructure. To achieve this, the chain uses a Polygon SDK, a fancy term for a development framework that allows the creation of multiple other blockchains and blockchain applications.
The Polygon blockchain runs on two mechanisms, a plasma framework, and a proof-of-stake protocol. A plasma framework is a software solution that allows a blockchain to link to the mainnet of another blockchain but run its transactions without burdening the resources of its parent blockchain. On the other hand, proof-of-stake is a verification mechanism for blockchain transactions.
These two technologies, combined, make the Polygon network fast and more affordable. They also allow the chain to grow exponentially without compromising its existing offerings.
To leverage the power of the Polygon network, users purchase the network’s own governance token, MATIC. Polygon users use MATIC to initiate transactions or build decentralized applications on the network. The decentralized exchanges discussed in this article are a perfect example of resources built on the network.
What are Decentralized Exchanges (DEX)?
DEX or Decentralized exchange is the cryptocurrency equivalent of stock markets. They are called decentralized because there isn’t a central authority that regulates them. Instead, decentralized exchanges operate using smart contracts.
Smart contracts are digital agreements that predetermine what should happen given a particular scenario. In the case of decentralized exchanges, smart contracts regulate what should happen when a given transaction is made. Smart contracts exist on the blockchain, making them accessible to anyone on the chain.
Potential of Polygon’s DEXs
The Polygon Network recently hit a significant milestone in terms of the volume of its DEX. According to a NarbTrading, the chain had over $50 billion in DEX volume over the last 12 months.
However, despite this remarkable feat, the volume of exchanges on the platform has steadily declined in recent months. Dune Analytics attributes this drop to factors like increased competition and the crypto winter in 2022.
Such findings paint a rather grim picture of the potential of Polygon DEXs. While the network is still strong, much effort must be put in place to ensure its DEXs are safe from lower transactions.
Best Polygon DEX – FAQ
Which DEX holds the most liquidity?
Uniswap is the top with the most liquidity. What makes Uniswap so unique is its automated market-making (AMM) system and high liquidity pool, which is unmatched by any other DEX provider.
How do DEXs make money?
Dexs make money by charging fees for their services. A Dex acts as an intermediary service between buyers and sellers, enabling them to quickly trade crypto without relying on a centralized third-party exchange.