The Polygon Network (formerly called MATIC) is a modern, innovative blockchain that represents a scaling solution for Ethereum. In the future, Polygon is set to become a full-fledged multi-chain platform. Polygon offers a faster and more efficient blockchain than Ethereum. Therefore, many developers choose to build decentralized exchanges, or DEX for short, on Polygon. But what are the best decentralized exchanges (DEX) on Polygon? In this article, we discuss the top 5 best DEX on the Polygon blockchain and the features and benefits of each.
What is Polygon (MATIC)?
Polygon is a blockchain network that is a scaling solution for the Ethereum blockchain. The Polygon blockchain is more efficient and transactions are cheaper. In the future, Polygon is to be further developed into a multi-chain platform. The Polygon blockchain thus represents a serious alternative to the Ethereum blockchain.
In recent years, the Polygon network was still known under the name MATIC. Polygon’s network token will continue to be called MATIC. The network was published in 2017 and has been growing continuously for years. Polygon uses so-called side and plasma chains to create a cheap and fast connection to Ethereum for developers.
What are Decentralized Exchanges (DEX)?
Decentralized stock exchanges or decentralized exchanges (DEX for short) are trading places for cryptocurrencies that are based on a decentralized structure. It is a peer-to-peer marketplace where participants trade directly with each other. There is no intermediary like a bank.
By being able to conduct decentralized financial transactions, the DEX fulfills one of the most important functions of the blockchain. The DEX offers new freedom and independence in the transactions of financial products. They resist core crypto exchanges like Binance and Bitfinex.
Why are Decentralized Exchange (DEX) developers using Polygon?
As mentioned, Polygon is a scaling solution for Ethereum that is cheaper and more efficient than Ethereum’s main chain. Polygon uses specific side chains to better distribute the transaction load in decentralized applications. Ethereum has had increasing problems with high transaction costs and low transaction speeds in recent years.
Therefore, Polygon is a very efficient network to develop decentralized applications like decentralized exchanges (DEX). As Polygon remains part of the Ethereum ecosystem, Ethereum also benefits from new applications on Polygon.
What are the top 5 best DEX for Polygon?
Below we would like to introduce you to the top 5 DEX on Polygon:
1. Fast exchange
Quickswap is a Uniswap fork and Automated Match Maker (AMM) on the Polygon network. Structurally, Quickswap is very similar to the Uniswap platform. The difference to Uniswap is the increased speed of Quickswap.
Quickswap takes full advantage of the high speeds and low fees Polygon can offer for DEX. In recent months, Quickswap has grown in importance and now has a Total Locked Value (TLV) of $359.83 million (as of July 19, 2022). In April 2021 (bullish) it even rose to over $1 billion.
2. Sushi exchange
Like Quickswap, Sushiswap is another fork of Uniswap. The platform has its own governance token called SUSHI. Through this token, the owners get governance rights and part of the fees paid by the platform.
Originally, Sushiswap ran on the Ethereum blockchain. However, in May 2021, Sushiswap announced that it is now available on the Polygon network. Right now, Sushiswap’s TLV is $727.4 million. That was nearly $7 trillion last year.
3.Firebird Finance
Firebird Finance is a DeFi platform built on top of Polygon and the Binance Smart Chain (BSC). It aims to help traders maximize their returns on the DeFi platform. It is a combination of exchange, yield aggregator and vault platform.
The platform includes swapping, an AMM with yield farming capabilities, an AMM for stablecoins, and a vault for staking. Yield farming can also be created for a project on the platform in just a few minutes. TLV is currently $467.9 million.
4. Polycat Finances
Polycat Finance is a relatively new DEX on the Polygon blockchain. This offers various functions as a DEX. These include initial farming offers, a flaming vault where your own tokens can be sold and burned, and the option to stake your own FISH token.
In total there may only be 3 million FISH tokens, making the token more valuable and the platform even more attractive. In 2021, Polycat (FISH) achieved a TLV of over $100 million. Since then it has fallen to 3.5 million in the bear market.
5. Polydex
Polydex is another well-known DEX based on Polygon. It offers zero gas transactions and elastic yield farming. This is a spin off of Pancakeswap. The platform is characterized by faster transactions and the absence of congestion.
Polydex’ native token is PLX. This is also used for a lottery jackpot called Polyto. During the fall bull market, Polydex hit a TLV of more than $5 million and surged higher. Meanwhile, the TLV stands at $386.4 million in the bear market.
Does Polygon’s DEX have a future?
Polygon (MATIC) has risen to the rank of the most valuable cryptocurrencies by market cap in recent months. Polygon is now at number 12. This shows that despite the bear market, the Polygon network is still on the up.
Despite the bear market, Polygon’s TLV still stands at $1.82 billion. Its efficient transactions and high scalability in connection with the association with Ethereum should make Polygon one of the most successful blockchain networks in the future. This also leads to the fact that the polygon-based DEX will be successful in the future.
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