The Cosmos network continues to build through the bear market. In fact, many more projects have hopped on to Cosmos. Why not? The Cosmos SDK makes development easier. Its Tendermint consensus makes a blockchain more scalable. Its Inter Blockchain Communication (IBC) allows a Cosmos chain to “talk to” any other Cosmos chain.
No wonder the Cosmos network has amassed 54 projects already. Today, we’re diving deeper into its DeFi ecosystem. In particular, its decentralized exchanges (DEXs). Let’s check out the best four DEXs on Cosmos.
DEX #1 – Osmosis
First of the best four DEXs on Cosmos is Osmosis. It’s currently the top DEX, with a total value locked (TVL) of $203.03 million. Yet, that is a shadow of its former TVL all-time high (ATH) of $1.8 billion. Like most DEXs, Osmosis has its own native token, $OSMO. Its main utility comprises paying for transactions and governance.
Now, what can you use Osmosis for? In a nutshell, you can:
- Make cross-chain token swaps.
- Provide liquidity to earn yield.
- Stake $OSMO.
- Vote on governance proposals.
With the @cosmos ecosystem heating up, is @osmosiszone the best-positioned chain to take advantage of this? 🧵👇
(If threads aren't your thing, read the full report below!)#OSMO #ATOM #DEX #Layer1 @MessariCrypto https://t.co/WojVtOXL9q
— Ryan (@RyGuy_LikesETH) February 6, 2023
Indeed, Osmosis remains a key DEX on Cosmos. I’ve used Osmosis before, and its cross-chain swaps are easy to execute. But, it’s not the only great DEX.
DEX #2 – Kava Swap
Second of the best four DEXs on Cosmos is Kava. Hey, but wait. Isn’t Kava an entire blockchain? It’s a DEX too?! Well, the short answer is – yes. Kava has a built-in DEX which allows you to swap your tokens. Today, Kava’s TVL stands at $188.79 million. Its ATH TVL was at $675.86 million.
In addition, Kava has its own native token, $KAVA. It serves as a token for transactions and staking. For Kava Swap, it’s a reward token for providing liquidity too.
Kava Swap is a pretty simple DEX. But there is beauty in simplicity. You can easily navigate all your needs in one interface, as shown above. You can swap or add liquidity, and collect your $KAVA rewards from a single webpage.
DEX #3 – ThorSwap
Next of the best four DEXs on Cosmos is ThorSwap. When you think of ThorSwap, think of ThorChain as well. That’s because ThorSwap is ThorChain’s top DEX aggregator. Furthermore, ThorSwap allows you to swap your tokens across multiple chains. And these include non-EVM tokens like $BTC and $LTC too. How cool is that!
The THORSwap Aggregator connect liquidity sources such as @Uniswap v2/v3, @SushiSwap, @pangolindex, @traderjoe_xyz, @1inch and many others coming up!
1/11
— THORSwap ⚡ #BetterThanCEX (@THORSwap) November 28, 2022
Similarly, ThorSwap has its own native token, $THOR. Its many uses include:
- Incentivizing and rewarding users.
- Providing exclusive access to content and apps.
- Governing and staking.
- Providing stakers a share of fees generated.
So, what else can ThorSwap do? Well, if allowing you to swap across nine chains isn’t enough, there’s more! ThorSwap allows you to add liquidity for each tradable asset too! So, you can earn a sweet return in $THOR tokens.
DEX #4 – Kujira FIN
Our last, but definitely not least, of the best four DEXs on Cosmos is Kujira FIN. This orderbook-style DEX is built on – you guessed it – Kujira. Now Kujira FIN is very different from the above three DEXs on Cosmos. Firstly, it’s an orderbook-style DEX. So, the user interface (UI) will look like a centralized exchange’s (CEX), rather than like UniSwap’s. Secondly, it doesn’t rely on liquidity pools (LPs). Instead, they use sellers and market makers for liquidity.
We truly believe that inflationary incentives simply to try and get people to trade a token are outdated, not fit for purpose, and in no way sustainable. FIN is quite literally like Kucoin, but fully decentralized. No need for liquidity pools, and no IL.
2/7
— Kujira 🉐 (@TeamKujira) May 11, 2022
Lastly, Kujira FIN doesn’t have its own native token. Instead, it’s part of a DeFi ecosystem on Kujira. In turn, Kujira uses the $KUJI token for transactions and staking. If you’d like to check out Kujira, feel free to hit up our previous research here.
Conclusion
Today, the Cosmos Hub’s native token, $ATOM, sits at #22 in market cap. However, the Cosmos network is much larger, with a vibrant DeFi ecosystem. With this article, we hope we’ve helped you pinpoint which DEXs suit you best on your Cosmos journey.
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