Emin Gün Sirer, a Cornell University computer science professor, is building Avalanche. A high-performance blockchain platform that provides a scalable and safe platform for creating decentralized apps (dApps). Avalanche has shown a rapid increase in TVL since August 2021. This post will highlight 5 of the largest Avalanche Dex based on TVL.
What is Total Value Locked (TVL)?
Total value locked (TVL) represents the sum of all assets deposited in decentralized finance (DeFi) protocols earning rewards, interest, new coins and tokens, fixed income,… Additionally, Total Value Locked (TVL) is a proxy for DeFi engagement and interest. Users can see for themselves if the project functioning or not, and if the liquidity is good or bad. It’s also possible to look at the market cap/TVL ratio to see how investors are feeling about the DeFi market right now.
Avalanche will hold its own and grow faster and faster. Here are the top 5 Dexes by TVL that have huge growth potential in 2022.
Trader Joe
Trader Joe has set out to serve the DeFi community by innovating, building quickly, and most importantly, building securely. The ultimate goal is to create a trading platform that offers users a true ‘one-stop-shop’ DeFi experience. Put the Avalanche Community First. Providing a comfortable and accessible interface to enhance the user experience.
Visit Trader Joe to Swap, Stake, Farm, Lend, Borrow, and Leverage… Do everything under one roof. Platform users will be able to immerse themselves in a fully integrated, highly accessible DeFi Trading Platform. Trader Joe has surpassed Pangolin to be the biggest Dex on Avalanche.
Main features on Trader Joe
- Trade: Trade between tokens with our automated market maker (AMM) exchange
- Farm : Stake LP tokens into Farms and earn JOE in return
- Stake: Stake JOE tokens to earn more JOE tokens, by sharing protocol revenue generated
- Lending/Borrow: Users can lend and borrow tokens from Banker Joe
- NFT Marketplace: Trader Joe will become an ambassador of NFT culture, developing a market-leading platform, to ignite the growth and integration of the metaverse, on the Avalanche blockchain.
Curve
Curve is an exchange liquidity pool on Ethereum designed for extremely efficient stablecoin trading low risk, supplemental fee income for liquidity providers, without an opportunity cost. Its main goal is to let users and other decentralized protocols exchange stablecoins (DAI to USDC for example) through it with low fees and low slippage.
The Avalanche Rush program enabled the Aave and Curve DeFi protocols to be launched on the Avalanche public blockchain. It came on the heels of the introduction of the Avalanche Bridge, which enables asset transfers across blockchains, and the business stated that the pairing of the two will incentivize both new and existing DeFi apps to join the Avalanche ecosystem.
Curve enables fast, efficient, and low-friction stablecoin swaps, proving that decentralized currency exchange not only works but is far more better than traditional forex.
What makes Curve different?
- Curve Finance allows users to supply liquidity with a single token or a pool of many tokens. Curve will automatically split tokens based on the pool’s ratio.
- Liquidity pools are where liquidity provider tokens are kept to create exchange liquidity.
- Traders swap tokens with the liquidity pool, creating buy and sell pressures that help determine token prices.
- AMM algorithms efficiently price the tokens in the liquidity pool according to various factors, such as buy and sell pressures driven by traders.
Pangolin
Pangolin is a decentralized exchange (DEX), which runs on Avalanche. Key attributes of the Pangolin exchange include fair & open token distribution, fast & cheap trades, and community-driven development. It supports assets on both Ethereum and Avalance networks and assures users.
What Are Pangolin Exchange’s Features?
Similar to other AMMs, Pangolin also has the following features:
- Swap: Swapping on Pangolin is simple, cheap, and fast. While this is a function available on any other AMM platform, the speed and efficiency with which it is implemented saves traders a lot of money.
- Add Liquidity: When you provide liquidity to the pool, you obtain PGL tokens, which are a symbol of your pool ownership. On all trades, liquidity providers earn a 0.25 percent fee according to their part of the pool. Fees are deposited into the pool, accrue in real time, and can be reclaimed by withdrawing your cash. Users will be enticed to give liquidity as a result of this.
- Liquidity Mining: You obtain PGL tokens after successfully creating a pool or adding liquidity to a current pool. These tokens indicate your share of a pool’s ownership. By depositing those PGL tokens into one of your participating pools, you can earn the PNG governance token.
- Stake PNG: Users can stake PNG tokens to earn more other tokens.
SushiSwap
SushiSwap, a decentralized exchange (DEX) with automated market-making (AMM), has expanded to Avalanche, providing users with another high-quality trading venue within Avalanche’s fast-developing decentralized finance (DeFi) ecosystem. Users may conduct core swaps and liquidity mining in the same way they do on Ethereum with SushiSwap, but with reduced costs and faster transaction finality.
With additional AMMs such as SushiSwap seeking to leverage Avalanche’s superior performance, the broader DeFi ecosystem will increasingly take note.
SushiSwap Feature
SushiSwap allows you to do a variety of things, including:
- Swap: Trade one cryptocurrency for another, such as turning your AVAX into USDT.e
- Farm: Deposit crypto into one of SushiSwap’s liquidity pools to earn rewards. Liquidity pools contain combinations of two or more cryptocurrencies, and you must deposit an equal amount of each one.
- Stake: Deposit your SushiSwap tokens to earn rewards.
- Lend: Provide crypto for others to borrow and earn interest on it.
- Borrow: Borrow crypto after providing collateral.
Synapse
Synapse is a cross-chain layer protocol powering frictionless interoperability between blockchains. By providing decentralized, permissionless transactions between any L1, sidechain, or L2 ecosystem. Synapse powers integral blockchain activities such as asset transfers, swaps, and generalized messaging with cross-chain functionality – and in so doing enables new primitives based on its cross-chain architecture.
Synapse Protocol can exchange (swap) a stable digital currency (stablecoin) with very low slippage, saving consumers a large amount of money as compared to other platforms. The job of employing an AMM (Automated Market Maker) platform devoted to stablecoins on Synapse Protocol is very important for users with substantial capital as it will save you a lot of money.
Synapse’s cross-chain swap allows users to instantly switch assets from one chain to another within a single transaction. Maximizing cross-chain synergies and influence between chains with a single mouse click.
Features of Synapse
Synapse Cross chain AMM
In the process of swapping and bridging, Synapse AMM pools use a stable swap algorithm to price transactions and promote asset rebalancing. Users can swap USDT (on the Ethereum network) to DAI (cross-chain to Avalanche) with a single click in the image below.
Synapse Network
The Synapse Network is protected by the use of cross-chain multi-party computation (MPC) validators that employ threshold signature algorithms (TSS). The network is leaderless and secures itself by each validator running the same procedure in response to on-chain events on the multiple chains monitored by the MPC validator group.
Liquidity Pools
Users can farm on Synapse using 10 main pools that correlate to 10 chains, that provide you with several options.
Conclusion
Avalanche’s TVL has been in the top 4 blockchains with the most TVL on defillama.com for a long time, even though it has only grown in a short time. More people are using Avalanche, more transactions are taking place, and the number of contracts being deployed is growing at a very fast rate. Avalanche will pave the way for the widespread use of blockchain.
We can determine this by looking at indicators such as TVL (Total Value Locked) or the price of growth tokens, which is also a clear indicator that this ecosystem is attracting cash flow.
Find more information about these projects:
Trader Joe: https://traderjoexyz.com
Curve: https://curve.fi/
Pangolin: https://pangolin.exchange/
SushiSwap: https://sushi.com/
Synapse: https://synapseprotocol.com/
If you have any questions, comments, suggestions, or ideas about the project, please email [email protected].
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.
Marshall
Coincu Ventures
