2022 has marked the rise of decentralization as more and more investors turn to DeFi crypto and financial ecosystems based on blockchain technology that gives users a greater choice with cryptocurrency investments and allows them to buy and sell assets and financial services, cutting out the middlemen and expensive fees in the process.
Recent data suggests decentralized exchanges now achieve around 12% of centralized platforms’ trading volume and are growing exponentially. This year alone has seen a 50% rise and a whopping 800% in the last two years.
Although most DEXs are still less intuitive than some of the top centralized exchange platforms, they are generally permissionless (meaning anyone can use them) and allow users to retain complete control of their assets at all times.
DEXs are now the foundation for DeFi crypto on many smart contract platforms, providing projects, users, and other protocols with the liquidity they need and generating a passive DeFi yield or income for its users simultaneously.
We’ve chosen six of the best DEXes on the market in 2022. So, read on to find out more.
With a quirky, unforgettable brand name, PancakeSwap supports thousands of BEP-20 tokens and has its own governance token called CAKE. And by staking CAKE in farms and pools on Pancakeswap, you can build yourself a passive income.
Offering a host of other features, including yield farms, a Binance Coin prediction market, a lottery game, initial farm offerings, and an NFT market, PancakeSwap is the most popular swap platform on Binance Smart Chain, regularly trading more than $300 million daily.
Uniswap was one of the first automated market makers, allowing users to become liquidity providers by investing their assets in decentralized liquidity pools sharing the fees their pool generates, and netting a passive income at the same time.
You can earn a passive income on Uniswap by providing liquidity for traders through a pair of assets like ETH and DAI, and in return, the platform shares the trading fees with you.
With a daily trading volume of around a billion dollars, Uniswap has also hosted one of the biggest airdrops of all time — rewarding early users with a huge 400 UNI tokens valued at more than $16,000 at their peak.
First launched on Ethereum in 2017 but has since expanded to several other popular blockchains, including Avalanche, Polygon, and Fantom, and several layer-2 solutions and now achieves several billion dollars in trading volume each month.
The platform allows users to trade stablecoins and other close-in-price assets with super low fees of just 0.04% — split between liquidity providers and stakers of the CRV token.
Allowing traders to swap assets across more than a dozen different blockchains and layer-2 platforms, Sushiswap was one of the first DEXes for the Fantom, Avalanche, and Harmony blockchains. Offering a range of features, including farming yields and an on-chain lending solution, SushiSwap allows users to contribute liquidity to the platform earning fees in return.
SushiSwap has its own utility token, SUSHI, which can be staked to earn a part of the platform’s trading fees.
Possibly the most popular DEX on the Fantom Opera blockchain, SpookySwap is unusual among DEXs, offering both straightforward swaps and limit orders, giving users the chance to earn liquidity directly or place their best bid and wait for someone to fill their order.
Offering yield farms, generative NFTs, and its governance token, SpookySwap has around $300 million daily trading volume and approximately $1.5 billion worth of assets locked in its pools.
Offering both straightforward swaps and limit orders, QuickSwap is a popular DEX for Polygon-based assets and was designed for traders to swap ERC-20 assets over Polygon’s high-speed layer-2 blockchain with minimal delays and gas costs.
With over $700 million in locked liquidity, Quickswap nets around $50 to $100 million daily trading volume and is incredibly fast. As the name suggests, QuickSwap can complete swaps instantly and includes a range of yield farms, allowing participants to earn token rewards.
As a liquidity provider, you can earn a hands-off income from transaction fees as Quickswap charges a 0.3% fee on any swap made using a liquidity pool.
BUILDING A PASSIVE INCOME THROUGH YIELD FARM AGGREGATORS
The easiest and possibly one of the most cost-effective and profitable ways to build a passive is through yield aggregators.
The benefits of yield aggregators and farming are pretty straightforward. If you already hold a cryptocurrency long-term, you may as well look to increase the return you can get on those holdings, and staking provides a low-risk way to generate extra returns.
With companies such as Bolide.fi, you can start with any amount and invest in a vast range of staking and farming options while choosing a risk strategy that best suits your risk appetite. Even better, there’s no lock-up period, and you can get APYs of up to 30%!
Here are some of the benefits of investing with Bolide:
– A one-stop investment product with access to leading protocols
– Automated, stablecoin investing producing maximum yields
– Low risk, market-leading yields of up to 30% APY
– Earn an extra 20% staking your BLID tokens and enjoy 11% APY on farming
– Start investing with any amount
– Hands-off, passive automated investments using your stablecoins
– No lock-up period access your funds and profits instantly
– No withdrawal limitations
Starting your yield farming and staking journey is easy with platforms like Bolide. Simply visit Bolide.fi, connect your crypto wallet, deposit either $USDT / $USDC / $DAI / $BUSD, $ETH, or $BTC and you’re good to go.
Start earning interest at the speed of light with Bolide today!