You can compare Stacks to any layer 2 chain, but it’s built on Bitcoin. In contrast to Bitcoin, it can handle smart contracts and Dapps. So, Stacks brings DeFi and NFTs to Bitcoin. According to DeFillama, its TVL is still low at $27.69 million. But each journey starts with the first step.
So, let’s take a look at the best-decentralized exchanges on Stacks.
1) ALEX
ALEX is a decentralized exchange that dominates the Bitcoin DeFi space with 93.9% of the entire TVL. It stands for “Automated Liquidity Exchange”. From the total of $28 million TVL, ALEX accounts for $25.9 million. Currently, DeFiLlama only lists 5 DeFi projects for Stacks. Measured by TVL, Stacks ranks at #41. So, let’s see this as a good start. So, there’s still lots of potential for growth.
Source: Twitter
Before you can run ALEX, you need to install a Stacks-compatible wallet. If you’re on Chrome, you can install:
ALEX offers, for instance, the following DeFi features:
- An IDO (Initial DEX Offering) launchpad.
- A DEX.
- Staking.
- Yield farming.
- Borrowing and lending.
Since September 2022, ALEX also offers an orderbook. This will launch come 8th August 2023 on a testnet. You can sign up for a ‘Whitelist’, so you can help to test it. To access this, you need the Hiro Wallet. Keep in mind that Hiro Wallet has a 24-word seed phrase. Furthermore, it offers a bridge to BSC and Ethereum (ERC20).
The platform launched in January 2022 with an AMM. At the helm of ALEX stands Chiente Hsu, She’s not only the founder but currently also the CEO. Her team consists of experienced Wall Street veterans. So, Stacks and ALEX have their own tokens, STX and ALEX respectively. The picture below shows the ALEX bridge.
Source: ALEX Labs
2) StackSwap
StackSwap is the other DEX listed on DeFiLlama and is the first DEX on Stacks. It’s one of the five DeFi protocols listed. If you want to use this app, keep in mind that you need a Bitcoin-compatible wallet. I listed these above, in the ALEX section.
Source: Twitter.
At the time of writing this article, the TVL for StackSwap is only $217,774. According to DeFiLlama, it occupies rank #4 on Stacks. In other words, it looks like it lost its first-mover advantage. It’s also worthwhile to check liquidity on this protocol before you start using it. Nonetheless, StackSwap offers a variety of DeFi features. For example:
- Swap. For instance, STX, wBTC, New York City Coin, and Miami Coin.
- Launchpad.
- Minting and trading NFTs.
- Borrow algorithmic stablecoins.
- Pool.
- Farm.
- Stake.
- Bridge.
Source: Stackswap
Conclusion
We looked at the current two decentralized exchanges on the Stacks protocol. These are ALEX and StackSwap. However, ALEX is the dominant DeFi protocol on Stacks. It holds a 93.9% dominance.
The current STX price is $0.60 and its market cap is $831 million. The max and total supply are 1.818 billion tokens. Currently, 1.381 billion tokens are already circulating. Over the last year, STX is 4.3% up.
The STX token is available on a few exchanges, including Bybit. Did you know that Bybit is giving out up to $30,000 in bonuses & together with a brand-new iPhone 14? Just click this link to find out more. If you already have a Bybit account, you can still join by clicking this link.
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