Arbitrum has become a popular Layer Two blockchain platform on Ethereum (ETH) for smart contracts, due to its fast transactions and minimal fees. As a result, it has attracted a variety of dApps. This article will discuss the most widely used decentralized cryptocurrency exchanges on Arbitrum, which could be a wise choice for both new and experienced traders in 2023.
Discover the Top Decentralized Exchanges (DEXes) on Arbitrum: A Seamless and Low-Cost Crypto Trading Experience
Decentralized exchanges (DEXes) and decentralized finance protocols (DeFis) on Arbitrum (ARB) offer a censorship-resistant and low-cost solution for crypto trading, yield farming, and decentralized lending/borrowing. ARB is a second-layer scaling platform for Ethereum that leverages Optimistic Rollups technology to process computations off-chain and reduce mainnet pressure. Launched in August 2021, ARB has attracted over $3.1 billion in locked assets across 250+ dApps. In this review, we’ll highlight the most significant DEXes and DeFis on Arbitrum, including GMX, Radiant, Gains Network, Camelot, and Arbitrum Exchange. Additionally, ARB hosts versions of leading multi-chain ecosystems such as Uniswap, Aave, Sushi, Curve, and Balancer.
While cross-chain heavyweights like Uniswap and Aave will be researched separately, this review will focus on the protocols specifically associated with Arbitrum. Start exploring the top DEXes on Arbitrum for a smart crypto trading bet in 2023.
Understanding Decentralized Cryptocurrency Exchanges (DEXes)
A Decentralized Cryptocurrency Exchange (DEX) is a platform created for exchanging one cryptocurrency to another without intermediaries. Unlike traditional exchanges, DEXes do not rely on centralized storage or wallets for crypto conversion, and all transactions occur on-chain through advanced smart contract designs.
DEX users are not required to create accounts, which makes them an ideal option for those who value privacy. However, DEXes are vulnerable to attacks and price manipulations, and their user interfaces can be difficult for newcomers to navigate.
Overview of the Top 5 Decentralized Exchanges (DEXes) on Arbitrum
The Arbitrum platform hosts numerous active DEXes, providing millions of cryptocurrency traders with a secure and cost-effective trading experience on a daily basis.
Overview of GMX Decentralized Exchange on Arbitrum
GMX, a decentralized perpetuals exchange, was launched on ARB shortly after the mainnet release in September 2021. Unlike other decentralized exchanges that only support spot positions, GMX offers the opportunity to trade leveraged positions, making it a standout feature. To ensure precise pricing, GMX relies on Chainlink Oracles that aggregate prices from various major exchanges.
The tokenomics of GMX is based on its eponymous governance and utility token, GMX, as well as its LP rewards asset, GMX Liquidity Provider Tokens (GLP). Liquidity providers on GMX earn a share of 70% of all fees generated by the platform.
As of April 2023, GMX is responsible for almost 40% of Arbitrum’s net TVL (total value locked) in its ecosystem. Apart from Arbitrum, GMX also has a version based on Avalanche.
Radiant Capital Decentralized Exchange
Radiant Capital is a leading decentralized lending protocol in the Arbitrum ecosystem, allowing cryptocurrency holders to earn rewards by providing liquidity, including stablecoins like USDT, DAI, and USDC, with reliable APY of 1.96–2.3%.
The platform has issued its core native utility, governance, and rewards token, RDNT, which will only be distributed to liquidity providers starting from its v2 iteration.
In 2023, Radiant Finance is focused on cross-chain development, aiming to accept tokens from various blockchains through its liquidity mechanisms within a single interface.
Gains Network DEX on Arbitrum
Gains Network, originally launched on Polygon, has become popular on Arbitrum. It is a one-of-a-kind trading platform that allows leveraged trading of cryptocurrencies, as well as Forex pairs, selected stocks, and commodities, targeting the $7 trillion Forex market. The platform offers up to 1000x leverage and allows users to deposit DAI into the gDAI vault. As of April 2023, the gDAI vault on Gains Network has over $38 million in total value locked. The platform uses the GNS token for its tokenomics.
Camelot DEX on Arbitrum: An Overview
Camelot DEX is a decentralized exchange built natively on Arbitrum. It enables users to easily convert between different assets and offers liquidity pools for providing liquidity. The platform is powered by the GRAIL token, and users are rewarded in xGRAILs.
In April 2023, Camelot released v2, which features an Algebra-powered AMM and advanced infrastructure. It also includes new tokens such as stETH. For early-stage projects, Camelot offers a decentralized token sale launchpad.
Arbitrum Exchange decentralized exchange
Arbitrum Exchange is a cutting-edge DEX for the ARB ecosystem. In addition to on-chain asset conversions and liquidity pools, it features dexVAULTS, farms, decentralized token bridges, and more.
Users can earn rewards in various assets (USDC, ARB, WBTC, WETH) for staking ARX, the native cryptocurrency of Arbitrum Exchange, through its staking module. dexVAULTS are unique auto-compounding investment mechanisms for diversified portfolios.
Additional Benefit: Multichain Decentralized Exchanges on Arbitrum
In addition to DEXes and DeFis specific to Arbitrum, many leading protocols active on different smart contract platforms have also migrated to ARB.
Arbitrum now has its own versions of major protocols such as Uniswap v3, AAVE v3, Sushi, Curve, and Balancer v2. As a result, the L2 scaling solution has become a preferred technology foundation for significant crypto services in the EVM ecosystem.
Analytics of DEXes on Arbitrum
In this section, we’re going to cover some statistics to better understand the progress of the ARB ecosystem and major Arbitrum DEXes.
Arbitrum and GetBlock: Fast RPC APIs for Ethereum’s Leading L2
GetBlock, a leading blockchain infrastructure provider, was among the first to activate Arbitrum RPC endpoints, enabling users to easily run Arbitrum DEX, ARB DeFi protocol, or trading bot with our ARB nodes.
Here’s how our clients can access ARB in just a few clicks:
VIDEO TO EMBED: https://www.youtube.com/watch?v=Vny8oM4Tq4g
With GetBlock’s Arbitrum endpoints, there’s no need to run your own node. Try it out and gain an advantage over your competitors in the next rally: https://account.getblock.io/
Top comments (1)
I'm excited to see a comprehensive guide to decentralized exchanges coming to Arbitrum in 2023. With the growing popularity of decentralized finance (DeFi), it's important to have an understanding of the available options for trading and exchanging cryptocurrencies on decentralized platforms. I am particularly interested in learning more about the liquidity and trading volume of the decentralized exchanges mentioned in the guide, as these are important factors to consider when deciding which exchange to choose. It would also be helpful to learn more about the arbitrum provider, the security measures employed by each exchange, and the commissions associated with trading. Overall, I can't wait to explore the decentralized exchanges on Arbitrum and see how they compare to other decentralized exchanges in the broader DeFi ecosystem. Thanks for putting together this guide and providing valuable information to the community.