The Polygon network ecosystem is a platform for developing decentralized solutions compatible with the Ethereum blockchain. Decentralized exchanges, known by the acronym DEX, are the main solutions created on the network.
Decentralized exchanges are platforms created on blockchain networks, such as Polygon, that offer trading without intermediaries. Unlike centralized exchanges, DEX promotes the trading of crypto assets autonomously, without the supervision of third parties.
Besides trading, DEX and CEX exchanges differ in managing the data generated in the transactions. While centralized exchanges can create a private database of information about the operations performed on the platforms, DEX exchanges keep only the data necessary to validate transactions. This information is publicly available on the blockchain. Learn more about the main DEX created on the Polygon network.
Uniswap is considered one of the leading decentralized exchanges in the crypto market today. Since the end of 2021, DEX was set up on Polygon after a vote where 72 million users chose the network to integrate the exchange.
Since then, smart contracts created through Uniswap have been developed through Polygon. According to Uniswap’s official website, more than US$ 1.3 trillion in crypto assets have been traded on the decentralized exchange.
DEX has more than 127 million users, integrating more than 300 blockchain platforms, including digital wallets, decentralized applications (DApps), and other networks, such as Ethereum.
Droidex is a platform developed to create interoperability between decentralized exchanges. As such, the solution offers more competitive fees and greater liquidity for transactions registered on the DEXs aggregator.
Created in January 2022, like Uniswap, Droidex uses the Polygon network. The platform also connects to Ethereum, Binance Smart Chain, and Avalanche.
On the Polygon network alone, Droidex has more than US$ 1 billion in total value locked (TVL). On the Ethereum network, the TVL held through aggregator users is US$ 47 billion.
SushiSwap is a decentralized exchange created from a fork in the main Uniswap network. The platform uses automated crypto assets trading (AMM) to finalize transactions on the network.
In addition to functioning as a DEX, SushiSwap maintains liquidity pools and provides passive income for users who hold tokens locked on the platform. The DEX uses these tokens to provide liquidity for transactions.
More than US$ 293 billion has been transacted through SushiSwap since then. The exchange migrated to the Polygon network in May 2021 and currently has over 19 thousand trading pairs.
Firebird Finance (HOPE)
Firebird Finance uses the Polygon network to create a decentralized ecosystem beyond crypto assets trading. In addition to being considered a DEX in the market, the platform offers a yield farming aggregator and can be used as digital asset storage.
In other words, Firebird Finance is considered a 3-in-1 DEX platform. Like Droidex, the platform has interoperability with other decentralized exchanges, with connections to networks with more than US$ 8 billion in total value locked (TVL).
Polycat Finance is a crypto platform developed on the Polygon network with several features in addition to offering decentralized crypto assets trading.
As such, Polycat Finance’s primary solution is a yield farming program that offers passive income to holders of tokens locked on the platform.
Currently, the platform offers a yield farming rate of over 188% per year. Therefore, Polycat Finance is a DApp, created on the Polygon network with more than US$ 4 million in total value locked (TVL). In addition to yield farming, Polycat Finance offers decentralized crypto asset trading to users.