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Arbitrum Unleashed

As the world of Decentralized Finance (DeFi) continues to expand, Decentralized Exchanges (DEXs) have become increasingly popular for trading cryptocurrencies. With the rise of layer 2 (L2) scaling solutions, DEXs have been branching out to these scaling solutions to reduce transaction time and cost.

One of the most promising L2 scaling solutions on the Ethereum blockchain is Arbitrum, which offers several improvements and features to enhance the existing infrastructure.

In this article, we'll be discussing the top five decentralized exchanges on Arbitrum, highlighting their standout features.

Lets have a look at some of the top DEXs on Arbitrum:

Developed on Arbitrum, Camelot is an ecosystem-focused decentralized exchange. Camelot's custom infrastructure enables deep, sustainable, and adaptable liquidity, allowing both builders and users to leverage it.

The Camelot AMM supports both volatile swaps (UniV2) and stable swaps (Curve-like). Additionally, the DEX introduced dynamic directional fees for its trading pairs: these allow different fees to be set for each pool, as well as for different swap directions (buying/selling).

Camelot also has a launchpad to support new protocols launching on Arbitrum, providing the tools that enable them to launch, bootstrap liquidity, and sustain their growth.

Camelot has a total value locked at $96.31 million, generating $2.43 million in fees in March. Camelot($GRAIL) is trading at $1885.56 with a market cap of $18.26 million.

Zyberswap is one of the first decentralized exchanges (DEX) using the Arbitrum blockchain with an automated market-maker. The Zyberswap platform allows crypto asset swapping with reportedly the lowest fees among its competitors.

Moreover, Zyberswap uses Governance Voting to fully involve its users in decision-making. Its token distribution is determined by a fixed supply, linear emission model, combined with a burning mechanism or a deflationary scheme.

Zyberswap launched on January 23, 2023 with 10k $ZYB tokens distributed at genesis.

A total of $21.4 million has been locked in on Zyberswap, with $358.17k in fees generated in March. With a market cap of $1.74 million, Zyberswap ($ZYB) is trading at $0.8218.

UniSwap is a decentralized exchange (DEX) that pioneered automated market making (AMM). In the V3 version of the exchange, it provides services for Ethereum layer-two solutions.

With the V2 version of the exchange, instead of swapping ETH for ERC-20 tokens, traders can trade between different ERC-20 token pairs. Consequently, slippage was reduced, allowing the exchange to evolve. In addition, protocol fees were introduced to continue development.

Uniswap has a total value locked at $287.652 million in Arbitrum, generating $8.59 million fees in March. Uniswap ($UNI) is trading at $5.31 with a market cap of $3.15 billion.

SushiSwap is a decentralized exchange with an AMM (automated market maker). The protocol is currently available on several EVM-compatible layer-two blockchains, including Arbitrum.

It is possible for users to create their own token pairs and provide liquidity to them. With SushiSwap, DeFi traders and institutions can trade permissionless without custody. This exchange reportedly follows a more inclusive governance approach than other exchanges.

Sushiswap has a TVL of $149.94 million and generated $4.42 million in fees in March. Sushiswap ($Sushi) is trading at $1.06 with a market cap of $243.2 million.

As a decentralized crypto exchange, Trader Joe provides a variety of services, including token swaps through its automated market maker (AMM), staking of its native token JOE, yield farming, borrowing and lending, liquidity pools, leveraged trading, a marketplace, and a launchpad.

In January 2023, Trader Joe expanded its services to Ethereum-based L2 scaling solution Arbitrum in an effort to gain more users. In addition, last month it launched its AMM liquidity book on the BNB Chain, expanding its DEX network.

Its recent liquidity book is said to be a highly efficient AMM in DeFi that maximizes real yield generation for liquidity providers and reduces swap costs for traders.

There is $10.29 million in TVL at Trader Joe, and $2.31 million was generated in fees in March. Trader Joe ($JOE) is trading at $0.4874 with a market cap of $164 million.

The adoption of decentralized exchanges on Arbitrum is an exciting development for the world of DeFi. The top five DEXs on Arbitrum, as discussed in this article, offer users a seamless and cost-effective trading experience, while also addressing the need for improved transaction throughput.

With the integrity of the Ethereum blockchain remaining paramount, the optimization of its infrastructure through layer 2 scaling solutions such as Arbitrum is essential for its continuous development and mainstreaming.

As Ethereum continues to evolve with its proof-of-stake adoption, the improvements to Arbitrum, such as simplified cross-chain communication, updated fraud proofs, and token bridges, will further enhance the user experience and promote wider adoption of decentralized exchanges.

Arbitrum is an Ethereum layer-2 network that allows developers to build and deploy highly scalable smart contracts for a low cost. Arbitrum chain will enable developers to use Web3 apps, deploy smart contracts, etc., but transactions will be cheaper and faster. The flagship product for the team, Arbitrum Rollup, is an Optimistic roll-up protocol that inherits Ethereum-level security.

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