There is a lot to learn about in web3, especially in the world of decentralized applications. dApps are built for the ease of its users, to facilitate a smooth decentralized experience in categories ranging from games to finance, and everything in between.

Today, we are going to talk about Swap dApps – what they are and the top ten Swap dApps that you should be aware of. So, let’s dive in!

What is a Swap dApp?

A swap DApp (Decentralized Application) is a type of blockchain-based application that allows users to swap one cryptocurrency for another without the need for a centralized intermediary. These DApps typically use smart contracts on a blockchain network to facilitate the exchange process and ensure that the transaction is executed in a trustless and decentralized manner. Users can interact with the DApp through a user interface, typically a web or mobile application, and the exchange process is typically automated and executed on the blockchain network.

Here is our list of Top Ten Swap dApps.

Uniswap V3

Uniswap v3, which was launched in 2021, introduces several new features that make it the most flexible and efficient automated market maker (AMM) ever designed. These features include concentrated liquidity, which gives individual liquidity providers (LPs) granular control over what price ranges their capital is allocated to, and multiple fee tiers, which allow LPs to be appropriately compensated for taking on varying degrees of risk. 

The concentrated liquidity feature allows LPs to provide liquidity with up to 4000x capital efficiency relative to Uniswap v2, earning higher returns on their capital. This in turn allows for low-slippage trade execution that can surpass both centralized exchanges and stablecoin-focused AMMs. Additionally, LPs can significantly increase their exposure to preferred assets and reduce their downside risk. 

Uniswap V2

Uniswap v2 is the second iteration of Uniswap. It was launched in May 2020, after Uniswap v1 which was launched in November 2018. Uniswap v2 includes several new features and improvements over v1 such as:

• The ability to trade ERC-20 tokens directly against ETH, rather than just trading against other ERC-20 tokens
• The introduction of liquidity pools, which allows users to provide liquidity in the form of a token pair, and earn trading fees in return
• The ability to earn additional rewards by providing liquidity to pools, known as liquidity provider (LP) tokens
• A new user interface and improved trading experience
• Improved price oracles, which provide more accurate pricing information
• Reduced gas costs, making it cheaper to use the platform

Uniswap v2 is still widely used as it is considered to be a stable and reliable decentralized exchange (DEX) platform with a large liquidity pool.

SushiSwap

SushiSwap is a decentralized exchange (DEX) built on the Ethereum blockchain. It is an automated market maker (AMM) platform that allows users to trade cryptocurrencies in a trustless, decentralized manner. SushiSwap is modeled after Uniswap, which is one of the first and most popular AMM-based DEXs, but with some additional features.

One of the main differences between SushiSwap and Uniswap is the Sushi token (SUSHI), which is used to govern the platform and provide incentives for liquidity providers. SUSHI holders can vote on platform upgrades and proposals, and also receive a portion of the trading fees generated on the platform.

Another difference is the launch of the SushiSwap v2 in September 2021, which is a revamped version of the protocol, with an improved token distribution and liquidity mining mechanism, increased liquidity pools, and a reduction of the platform’s overall fees.

Shibaswap

ShibaSwap is a decentralized exchange (DEX) built on the Ethereum blockchain and is a fork of SushiSwap. Like SushiSwap, it is also an automated market maker (AMM) platform that allows users to trade cryptocurrencies in a trustless, decentralized manner. The main difference between ShibaSwap and SushiSwap is the use of the Shiba token (SHIBA) which is used as the native token of the platform and used to govern it as well as incentivize liquidity providers.

ShibaSwap is also community-driven and operates on a decentralized autonomous organization (DAO) structure allowing token holders to voice their opinions on upgrades and proposals.

The platform’s launch in September 2021, aims to improve the token distribution and liquidity mining mechanism, compared to SushiSwap v2 which was launched in the same month. Additionally, it also aims to have a lower fee structure and to have a stronger focus on community engagement and development.

BabySwap

BabySwap is a decentralized exchange (DEX) built on the Ethereum blockchain and is also an automated market maker (AMM) platform. BabySwap is a fork of Uniswap v2, which means it uses a similar liquidity provision and trading mechanism as Uniswap.

One of the main differences between BabySwap and other similar platforms like Uniswap, SushiSwap, or ShibaSwap is the use of the Baby token (BABY) which is used as the native token of the platform and used to govern it as well as incentivize liquidity providers.

Like other similar DEXs, BabySwap is also community-driven and operates on a decentralized autonomous organization (DAO) structure where token holders can vote on upgrades and proposals.

Balancer

Balancer is a decentralized protocol for multi-token automated market-making. It allows users to create custom pools of assets, called Balancer Pools, which can contain two or more tokens, each with arbitrary weights of the total pool value. The pools are used as liquidity providers for the protocol, and traders can trade between any two tokens present in any pool.

Traders can also trade against these pools and Balancer Protocol charges a trading fee in return, which goes to the liquidity providers of the pools.

One of the main advantages of Balancer is its flexibility and customization options, as it allows users to create pools with any combination of assets, and also to adjust the weight of each asset in the pool.

Additionally, Balancer also offers a unique liquidity mining mechanism, where liquidity providers can earn rewards for providing liquidity to the pools, which can be used to buy BAL tokens, the native token of the Balancer Protocol.

SunSwap

Overall, SunSwap is a TRON-based DEX that aims to provide an efficient, fast, and low-cost trading experience for TRC20 tokens, and also offers an opportunity for liquidity providers to earn rewards by providing liquidity to the pools.

One of the key features of SunSwap is that it is built on the TRON blockchain, which allows for faster transaction speeds and lower fees compared to other blockchain platforms.

The platform also allows users to provide liquidity to the pools in exchange for SUN, the platform’s native token, which can be used to access various features and participate in governance.

ACSI Finance

ACSI Finance is a decentralized exchange (DEX) protocol that was launched on June 3, 2021, and is built on the Binance Smart Chain. It is based on the Balancer V2 AMM protocol and is an automated portfolio manager, liquidity provider, and price sensor.

One of the key features of ACSI Finance is that it aims to slash gas costs, super-charge capital efficiency, and enable arbitrage with zero-token starting capital. Additionally, it also allows for the creation of custom AMMs.

Instead of paying fees to portfolio managers to rebalance your portfolio, ACSI Finance allows users to collect fees from traders, who rebalance the portfolio by following arbitrage opportunities. It is based on an N-dimensional invariant surface which is a generalization of the constant product formula described by Vitalik Buterin and proven viable by the popular Uniswap dApp.

ACSI Finance also uses Balancer V2 contracts verbatim, which have completed several full audits and have a comprehensive bug bounty program. This makes the platform more secure and reliable.

Baby Doge Swap

BabyDogeSwap is a decentralized exchange (DEX) that allows BEP-20 token swaps on the Binance Smart Chain (BNB Chain). It is considered one of the biggest exchanges in the Binance Smart Chain ecosystem and one of the top community DEXs by the Baby Doge community.

The exchange employs an automated market maker (AMM) model, allowing users to swap against a liquidity pool. Users can also become liquidity providers and receive LP tokens, which entitle them to a share of the swap fees.

LP token holders can also engage in yield farming to earn BabyDoge, the swap’s utility token. The token can be staked in so-called ‘Farms’ or Pools with flexible or fixed-term staking. When the BabyDoge token is held in your wallet, users receive lower swap fees.

BabyDogeSwap supports all BEP-20 tokens, such as BTC/USDT, ETH/USDT, BNB/USDT, and all other big layer-one blockchains. The trading fee is 0.30%, with 0.20% returned to the liquidity pools as a fee reward, 0.05% sent to the treasury and 0.05% sent towards a buyback and burn program. However, some pairs such as BabyDoge/BNB and other requested pairs have a 0% swap fee. Additionally, when holding the BabyDoge token users receive up to 70% OFF per swap giving as low as 0.09% swap fees.

Bancor

Bancor is a decentralized staking protocol that allows users to earn money with single-token exposure and full protection from impermanent loss. It was launched in 2017 and was one of the first decentralized finance (DeFi) protocols.

Bancor allows users to deposit a wide range of tokens, such as ETH, WBTC, LINK, MATIC, AAVE, and more, and earn interest on them, with rates up to 60% APR. The platform is owned by its community as a decentralized autonomous organization (DAO) and the protocol token used on the network is the “Bancor Network Token,” BNT.

The BNT token allows traders to provide liquidity for the pools available on the network. Anyone can contribute liquidity to the pools, and in return, they are eligible to receive fees for trades that pass through the pool and also receive pool tokens that represent their share of liquidity, fees, and Liquidity Mining rewards in the pool.

Bancor is considered a pioneer in the DeFi space and it’s seen as a reliable and secure platform to earn a yield on your crypto holdings.