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How will DEX fare in 2022 with high hopes?

Leo

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"Innovation, uniqueness, and contribution of DEX are more important than pure index ranking."

Original author:Lgnas, DeFi Research

Leo, BlockBeats

With the demise of the giant CEX, people's doubts and demands on the centralized trading platform are getting higher and higher, and then most eyes will turn to DEX. In 2022, the progress of Dex is fairly normal, unlike the CEX class, which makes rapid progress and steady progress, and is committed to making innovation and contribution to crypto. Lgnas, a well-known DeFi researcher, wrote an article summarizing the DEX trend in 2022. There are some established DEX and some upstarts in the industry. BlockBeats compiled it as follows:

DefiLlama lists 200 Dexes, but I would like to introduce the "top 20". The top 20 lists vary depending on the criteria (depending on TVL or volume). Below is the top 20 Dexes ranked by TVL.

However, according to the 7-day trading volume standard, the ranking of top 20 Dex is obviously different from that of TVL standard, wherein:

-Uniswap tops Dex list

-Dodo stormed to fourth

- Dex was replaced by MetaTdex, Hashflow, Serum, THORswap, ShibaSwap, Orca, and WOOfi in 7 of the TVL rankings above.

Based on network traffic data, the ranking changes again -- PancakeSwap takes the lead, so I'm more focused on the innovation, uniqueness and contribution of DEX to the crypto space than the pure metrics ranking.

DODO

Going back to the rankings, why does DODO rank fourth? DODO has $46 million in TVL and $568 million in trading volume (last 7 days) -- good capital efficiency, however, most of the trading volume is from two stablecoin pairs (USDT-USDC, DAI-USDT).

The DODO's innovation is the introduction of the PMM (active market maker) algorithm, which reduces the slip point by gathering more money (near the market price), thus gathering more liquidity; DODO also introduced a single token supply and liquidity pool to reduce volatile losses.

Uniswap and KyberSwap

Capital efficiency is the focus of most innovations, Uniswap V3 "Centralised Liquidity" protocol was launched in 2021, and this year KyberSwap launched Kyber Elastic with similar features, with the differences:

-Anti JIT/Snipe Protection (not provided by Uni V3)

- The LP fee is reinvested in the LP pool

Click to learn Comparison of Uni V3 and Kyber Elastic

Trader Joe

The Trader Joe's solution is the liquidity book, where an LB pools liquidity in a specified price range, but an LP can deposit liquidity in multiple price ranges.

End result: Better prices and lower slip-points, but Trader Joe doesn't make the top 20 Dex rankings in terms of 7-day volume because it only operates on AVAX.

Hashflow

Hashflow capital efficiency is achieved by connecting traders and professional market makers. Hashflow uses market maker quotes instead of AMMs to provide a 0 slip CEX trading experience, in addition to MEV protection and bridgless cross-chain swap.

BiSwap

A surprise entry into the top 20 is BiSwap on BSC, a competitor to PancakeSwap and a forked project of Uniswap V2, whose main selling point is incentives: 50% swap refund, 0.2% swap fee, mining, recommendation, startup, betting, pledge, trading contest...

PancakeSwap

PancakeSwap has also been active this year:

- 750 million CAKE supplies;

- Adopting vCAKE's veTokenomics;

Cooperation - and ApolloX (https://twitter.com/ApolloX_com) launched a sustainable contracts;

- Expand to Ethereum and Aptos.

Main goal: Burn as much CAKE as possible

Balancer

Of course, CAKE is not the only DEX to adopt the ve Token model, Balancer has also adopted veBAL, which involves locking in 80% BAL and 20% ETH LP tokens to promote consistency for long-term token holders, but it comes at a cost: A whale-led governance will distribute BAL rewards directly to his pool.Click to learn

Velodrome

Velodrome takes veTokenomics to the next level, Velodrome is an improved version of Andre Cronje's failed Solidly project, and by pledging VELO (for up to four years), users get veVELO: An NFT form of ERC-721 governance token, using the ve(3,3) rebase mechanism.

veVELO holders receive "bribes" for voting on emissions, and Velodrome's projects on Optimism have proved popular because of cheaper access to liquidity than launching its own liquidity mining campaign.

SushiSwap

It's been a pretty quiet year for Sunshi, Sushi is running out of money, so Sushi DAO voted to pay 100% of SushiSwap fees to the vault, new tokenomics will be out for at least a year, but despite that, Sushi has managed to stay in the top 7 on TVL, ranking 6th in terms of trading volume.

Curve and Platypus Finance

Two stablecoin-focused Dexes are launching their own stablecoins, and for Curve and Platypus Finance, liquidity is crucial, offering their tokens as rewards in order to attract users, but their own stablecoins should make the liquidity attraction cheaper and more "sticky."

The core of crvUSD of Curve is the loan-clearing AMM algorithm (LLAMA), which itself is a kind of AMM of continuous liquidation or non-liquidation, which can reduce the risk of bad debts.Click to learn

In addition to its stablecoin, Platypus is also working on NFT innovation. Platypus vePTP system requires PTPS to be pledged in order to achieve higher stablecoin deposit returns. Platypus Hero# NFT speeds up vePTP generation. And retain part of vePTP when releasing the pledge.

Osmosis

Stablecoin swap is going live with Cosmos, Osmosis is the DEX for trading and mining on Cosmos, the team announced the launch on December 8th.Stableswap, was obtained by upgrading and modifying the Solidly curve formula of AC.