DeFi keeps gaining in popularity. The option of no middlemen and high-yield lures in new users every day. Some people even talk about institutional money flowing in one day. It’s most certainly possible. The sky seems to be the limit.
However, you can find many DeFi platforms on Ethereum. This means high gas fees. As a result, newer platforms opened to other chains. This means fast and low-cost transactions. So, let’s have a look at which three DeFi platforms currently are most popular on various chains.
1. Uniswap (UNI)
Uniswap is the OG of all DEXs, and it is an AMM. It used to be the biggest DEX but lost that status by now. However, it is still a DEX that counts and is one of the most popular DeFi platforms. Originally, it runs on Ethereum, which has high transaction costs.
Nowadays, Uniswap is also available on a few L2 solutions. For example, Polygon, Arbitrum, and Optimism. Welcome to L2 and lower costs. As a result, Polygons MATIC token took a flight when they welcomed Uniswap.
According to DeFiLlama, Uniswap is still listed in the seventh spot. Their TVL is $7.41 billion. Furthermore, their daily trading volume on V3 stands at $1.28 billion, with 460 coins and 902 trading pairs.
Also, on Uniswap, you can either swap tokens or take part in a liquidity pool. Because it is on Ethereum, this means that you can swap all ERC-20 tokens.
Adding liquidity means that you need to add two assets into a pool, each with the same amount. Once you add liquidity, it allows you to earn yield. For example, in 2021, Uniswap added the top yield farms. Their yield ranged between 20% to 50% APR. However, you need to be aware of and careful with impermanent loss.
2. PancakeSwap (CAKE)
You can find PancakeSwap on the BNB chain. It is the most visited DEX of all DeFi platforms, with some 13.5 million daily visitors. They just make the top 10 in TVL in DeFiLlama with $5.72 billion.
However, they offer some interesting yield farming options. At the time of writing, their best farm earns 190.67% APR. This is the XWG-USDC farm. The CAKE-BUSD farm is still at 66.58% APR. Just be aware that these percentages fluctuate all the time.
Besides farming, you can add liquidity to their pools. You can stake CAKE and earn up to 276% in locked APY. Currently, their highest APR is by staking CAKE and earning GMT at 63.33%. For the liquidity pools, keep in mind that impermanent loss is here also an issue.
Of course, you can also trade, it’s a DEX after all, but they also offer a lottery. One of their brilliant moves was to open PancakeSwap up to NFTs. You can buy and sell loads of BNB chain NFT collections.
3. Trader Joe (JOE)
Trader Joe is one of the most popular DEXs on Avalanche. Their TVL is $1.04 billion, according to DeFiLlama. Trader Joe offers lots of DeFi options. For example, trading, pools, farming, launches, lending, or staking. Their current top farm is AVAX-LOST at 383% APR. On the other hand, the AVAX-UST farm still offers a nice 30% APR.
Source: Trader Joe
Their pools also offer good yields. First stake your coins in a pool and in return, you receive liquidity pool tokens. In turn, these tokens you can add to the farms. This allows you to earn twice. From the liquidity pools and from the reward tokens.
You can also stake JOE tokens, and don’t have the impermanent loss issue. You still receive xJOE, in return for your staked JOE. Furthermore, you can now farm the xJoe tokens again.
Joe also offers bridges to other chains, like Fantom, BNB, or Polygon. There are plenty of reasons why Joe is such a popular DEX.
DeFi’s popularity keeps growing. It’s no wonder if you look at the DeFi trading strategies that are available on all the various DEXs. The yield options are just very attractive. That’s why we showed you some of the current most popular DEXs around. There are plenty of other DEX options available, though. Keep following us, and you will find out more about them.
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