update 7 June 2021

Uniswap vs. SushiSwap vs. PancakeSwap vs. MDEX

There is a quiet battle raging behind the scenes of the decentralized exchange (DEX) community. The recent surge in the decentralized finance (DeFi) sector has driven interest in DEXes to new heights. There are currently a variety of top-performing DEXes in the market. Each of these platforms introduces new features and services based on their technical structure. Here are the differences between four major contenders in the market – Uniswap vs. SushiSwap vs. PancakeSwap vs. MDEX.

Uniswap

Uniswap is the largest Ethereum Dapp in the world, according to market capitalization. This platform achieved this monumental goal via its pioneering approach to DEXs. Uniswap entered the market in 2017. Its primary goal was to service the growing ERC-20 community.

uniswap statistics
Source: DappRadar

The non-custodial and open nature of Uniswap helped to drive adoption to new heights. According to Dune Analytics, the current market share of Uniswap surged 63% this year. Much of this growth can be attributed to users seeking alternatives to the CEX sector.

Uniswap introduced the Automated Market Maker (AMM) protocol to the market. These systems eliminate order books from the pricing system. Instead, users trade against liquidity pools. Notably, Uniswap pairs every token against ETH. In the Uniswap ecosystem, ERC-20 to ERC-20 swaps are transactions that convert ERC-20a over to ETH, then to ERC-20b in a single transaction.

Any project can seed a liquidity pool on Uniswap. To accomplish this task, users must provide their project token and the corresponding value of ETH. This strategy enables users to access public funds more efficiently by eliminating gatekeepers and centralized exchanges (CEXes). In this way, Uniswap solves the problem of high spreads for illiquid assets on order-book exchanges.

SushiSwap

SushiSwap is an AMM (automated market maker) that entered the market in 2020. The goal of the project was to eliminate some of the problems that Uniswap users encountered. One of the main upgrades that the developers introduced is a community governance mechanism. This system allows regular users to participate in the direction of the protocol.

sushiswap statistics
Source: DappRadar

SushiSwap introduces more DeFi functionality to the market. Users gain access to multiple ways to earn a passive income with less risk versus trading. The network supports both staking and farming protocols. The Sushibar protocol allows you to stake your Sushi and receive xSushi in return. You then can then earn more rewards by staking in the xSushi pool. All xSushi stakers gain a percentage of fees from the exchange.

Fees

SushiSwap is the first AMM to send all profits back to the community that maintains and services it. Stakers and liquidity providers receive a percentage of the transaction fees from the network as part of this strategy. The network even offers a SUSHI/ETH pool that pays out double rewards. 

Tokens

SushiSwap introduces a variety of different tokens to make the ecosystem function seamlessly. SUSHI is the governance and utility token of the network. xSushi is another unique token designed to increase user ROIs. You receive xSushi in exchange for staking SUSHI tokens the Sushibar. To mint xSushi tokens, you need first to stake SUSHI. Keenly, xSushi tokens hold more value than regular SUSHI.

SLP tokens are what LP providers receive when they participate in liquidity pools. These tokens fluctuate in value based on the total liquidity in the pool. Therefore, the value of SLP tokens will go up when more LP providers are participating in the pool. 

PancakeSwap

PancakeSwap is a new project in the market that has garnered considerable attention. The platform launched on September 20, 2020. Since the network entered service, it’s been growing in popularity. Part of this success can be attributed to the acceptance and promotion of the exchange by the Binance Accelerator Fund.

pancakeswap statistics
Source: DappRadar

Notably, PancakeSwap has grown to become the largest Dapp on the Binance Smart Chain. It’s also the largest and most heavily used AMM for yield farming and staking on the BSC. In this way, the DEX serves a valuable role in the BSC economy. It allows anyone to swap BEP-20 tokens.

No Gas Fees

The low fee structure of PancakeSwap makes it ideal for traders seeking to avoid high Ethereum gas fees. The network can avoid these costs because it doesn’t rely on gas to execute smart contracts. Compared to Uniswap, PancakeSwap is far cheaper to use. For example, the average transaction only costs around $0.08 using PancakeSwap. 

Pancake DeFi

PancakeSwap supports a variety of DeFi functions. For example, users can secure passive rewards using staking and farming protocols. Additionally, PancakeSwap was designed to support the creation and trading of Non-Fungible Tokens (NFTs). Notably, PancakeSwap has issued a line of NFT collectible to lottery winners in the past. To simplify the creation of these unique digital assets, the network developed a BEP-721 protocol. The BER-721 standard also supports FNFTs (fractional Non-fungible tokens).

MDEX

MDEX is a next-generation DEX that seeks to solve some of the most pressing issues currently plaguing the market. Specifically, MDEX operates as a multi-chain DeFi ecosystem. The network leverages both Swap and Bridge protocols to simplify the transfer of assets across blockchains. 

mdex statistics
Source: MDEX.com

As such, the platform is top-rated. Its native smart token, MDX, ranks among the top tokens in daily trading volume. In addition, MDEX has secured over +$3.5 Billion in locked liquidity at this time.

MDEX is the first DEX built on the HECO blockchain. HECO is the native blockchain of the popular crypto exchange Huobi. This blockchain was built specifically to support DeFi activities. HECO provides scalability and security from an easy-to-use interface.

Trading Mining

One of the coolest features that MDEX users enjoy is Trading Mining. The Trading Mining feature rewards traders for every transaction they make. These rewards help drive trading volume in the network. In this way, MDEX alleviates liquidity concerns in the market.

Burning Black Hole Contest

Those seeking a little more fun in their investment strategy will enjoy the Burning Black Hole Contest. This unique competition combines a deflationary mechanism with a lottery protocol. Users contribute MDX to the burning pool to enter the competition. This eliminates coins from circulation, which drives up demand versus supply. Notably, the winners receive some exclusive prizes included a share of 10% of the burning pool. 

Top DEXes to Know

Btc
Bitcoin
$47.819
price
1.08404%
price change
BUY NOW

All of the DEXes listed above have proven to be reliable and secure platforms. However, depending on your particular investment strategy, you may find one of these platforms better suited to meet your overall goals. Regardless of your experience level, these DEXes can help you trade your digital assets more efficiently. 

More posts

Historical Hardfork Events Every Crypto Enthusiasts Should Know About

Blockchains have been gaining attention since the history of crypto. The highly advanced systems help decentralize and streamline financial systems globally. As the blockchain systems grow, investors start noticing issues and propose an upgrade. However, for any upgrade to occur, blockchain requires the consensus of all participants. If there is no consensus, two factions with opposite ideas may form. The developers may choose to go ahead with the upgrade but maintain the status quo in the original chain. At that point,…

Future Crypto Events that we Should Look Forward to

The crypto world is growing at an interesting rate, with new projects coming up every other month as solutions to the financial world. For that, people around the world hold annual events to celebrate crypto progress while at the same time discussing the future. Top industry experts and project developers often organize these events inviting reputable people in the fintech industry to offer ideas and opinions on several topics about cryptocurrencies. Some of the events occur annually, while others are…

Understanding Cardano’s Non-Interactive Proofs of Proof-of-Work

Cardano, the fifth-largest cryptocurrency by market cap and soon to be the second-largest Dapp center, is one of the unique blockchain technologies of 2021. In addition, Cardano has a native coin named Ada, performing very well in the crypto markets.  However, Cardano as a network adopted a sidechain system, where the network runs two blockchains. The original blockchain, the Cardano settlement layer(CSL), deals specifically with powering the Ada currency and other settlements done with Ada. It leverages POS to release…

Understanding How ADA Delegation Rewards are Calculated

Founded by Charles Hoskinson, Cardano is a blockchain platform seeking a decentralized application (DApp) development platform. The Cardano platform runs on the Ouroboros consensus protocol. In addition, it leverages the Delegated Proof-of-Stake (DPoS) consensus mechanism meaning that users can delegate their ADA to other pools to be staked and earn rewards.  The two primary ways ADA coin holders can invest and earn rewards on the Cardano blockchain include; running their own stake and delegating their ADA to a staking pool.…

5 Unique Features of Proof-of-Stake Crypto Projects

Ironically, decentralization, one of crypto assets' vital features, is a potential Achilles heel too. Eliminating third parties from transactions enables peer-to-peer exchanges. However, the absence of a third party also creates loopholes for double-spending by mischievous parties. It's for this reason that networks agree on specific consensus mechanisms. They are the rules and procedures that all devices in a network follow in confirming that certain blockchain transactions are correct. They also help in protecting the network against malicious activities, thereby…

Understanding the Crypto Reset Time

Humanity hangs in the balance as the deadly Coronavirus affects various sectors, including healthcare, manufacturing, finance, and many more. Since the beginning of the outbreak, governments and citizens have had to adopt a new lifestyle that involves quarantine and social distancing practices.  To offset the current pandemic situation, global stakeholders at the World Economic Forum came up with a radical solution known as the Great Reset, which aims to change the global economy. The meeting, which took place in June…

Common BTC Price Chart Patterns Every Day Trader Should Know About

For several years now, market patterns have been used by expert crypto investors to maximize incomes. They do this by knowing the right time to enter the market. Crypto investors have also been beneficiaries of market chart patterns, with some identifying a position of great prospect and investing.  Being the most popular asset with the highest volatility rate, Bitcoin has shown many different market patterns that can help investors maximize incomes. So what are the most common patterns in the…

How to Minimize Risks When Trading Digital Assets

The cryptocurrency revolution is moving full-steam ahead with increasingly global acceptance. For instance, India has seen its residents invest over $6.6 billion in crypto assets in May 2021. That figure is even more impressive when we discover that it grew from nearly $923 million in April 2020. Today, trading in digital assets is no longer available only for a handful of geeky investors worldwide. Instead, many see the rise of DeFi and the increasing popularity of cryptocurrencies as a unique…

Scenarios When the Value of Bitcoin Could go to Zero

There's no doubt that bitcoin is the most valuable crypto asset of our day. According to coinmarketcap, when writing this, the price of Bitcoin was around $31k. Even more, the market cap was almost $600 billion, twice the value of the second largest crypto asset. Bitcoins market capitalization is larger than the value of the first ten altcoins combined.  Expert analysts have predicted that in the future, the prices of bitcoin could increase to about $300k. Looking at the past…

Cryptocurrencies vs. Fiat Currencies; Which One is Greener?

Money oversees the majority of activities individuals intend to fulfill in their daily lives. By taking coins or paper money, fiat currencies can operate as legal payment tools regulated by a government. Cryptocurrencies began to feature in the market more than a decade ago to replace the traditional financial system with an advanced mode of transacting. Despite uplifting most users' lives and living standards, digital and fiat currencies portray specific impacts in the global environment. Generally, the environmental conservation topic…