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Uniswap vs. SushiSwap vs. PancakeSwap vs. MDEX

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Uniswap vs. SushiSwap vs. PancakeSwap vs. MDEX

A quiet battle rages behind the scenes of the decentralized exchange (DEX) community. The recent surge in the decentralized finance (DeFi) sector has driven interest in DEXes to new heights. There are currently a variety of top-performing DEXes in the market. Each platform introduces new features and services based on its technical structure. Here are the differences between the four major contenders in the market – Uniswap vs. SushiSwap vs. PancakeSwap vs. MDEX.

Uniswap

Uniswap is the largest Ethereum Dapp in the world, according to market capitalization. This platform achieved this monumental goal via its pioneering approach to DEXs. Uniswap entered the market in 2017. Its primary goal was to service the growing ERC-20 community.

The non-custodial and open nature of Uniswap helped to drive adoption to new heights. According to Dune Analytics, the current market share of Uniswap surged 63% this year. Much of this growth can be attributed to users seeking alternatives to the CEX sector.

Uniswap introduced the Automated Market Maker (AMM) protocol to the market. These systems eliminate order books from the pricing system. Instead, users trade against liquidity pools. Notably, Uniswap pairs every token against ETH. In the Uniswap ecosystem, ERC-20 to ERC-20 swaps convert ERC-20a over to ETH, then to ERC-20b in a single transaction.

Any project can seed a liquidity pool on Uniswap. To accomplish this task, users must provide their project token and the corresponding value of ETH. This strategy enables users to access public funds more efficiently by eliminating gatekeepers and centralized exchanges (CEXes). This way, Uniswap solves the problem of high spreads for illiquid assets on order-book exchanges.

SushiSwap

SushiSwap is an AMM (automated market maker) that entered the market in 2020. The project’s goal was to eliminate some of the problems that Uniswap users encountered. A community governance mechanism is one of the main upgrades that the developers introduced. This system allows regular users to participate in the direction of the protocol.

SushiSwap introduces more DeFi functionality to the market. Users gain access to multiple ways to earn a passive income with less risk versus trading. The network supports both staking and farming protocols. The Sushibar protocol allows you to stake your Sushi and receive xSushi in return. You then can then earn more rewards by staking in the xSushi pool. All xSushi stakers gain a percentage of fees from the exchange.

Fees

SushiSwap is the first AMM to send all profits back to the community that maintains and services it. Stakers and liquidity providers receive a percentage of the transaction fees from the network as part of this strategy. The network even offers a SUSHI/ETH pool that pays out double rewards. 

Tokens

SushiSwap introduces a variety of different tokens to make the ecosystem function seamlessly. SUSHI is the governance and utility token of the network. xSushi is another unique token designed to increase user ROIs. You receive xSushi in exchange for staking SUSHI tokens, the Sushibar. To mint xSushi tokens, you need first to stake SUSHI. Keenly, xSushi tokens hold more value than regular SUSHI.

SLP tokens are what LP providers receive when they participate in liquidity pools. These tokens fluctuate in value based on the total liquidity in the pool. Therefore, the value of SLP tokens will go up when more LP providers participate in the pool. 

PancakeSwap

PancakeSwap is a new project in the market that has garnered considerable attention. The platform launched on September 20, 2020. Since the network entered service, it’s been growing in popularity. Part of this success can be attributed to the acceptance and promotion of the exchange by the Binance Accelerator Fund.

Notably, PancakeSwap has become the largest Dapp on the Binance Smart Chain. It’s also the largest and most heavily used AMM for yield farming and staking on the BSC. In this way, the DEX serves a valuable role in the BSC economy. It allows anyone to swap BEP-20 tokens.

No Gas Fees

The low fee structure of PancakeSwap makes it ideal for traders seeking to avoid high Ethereum gas fees. The network can avoid these costs because it doesn’t rely on gas to execute smart contracts. Compared to Uniswap, PancakeSwap is far cheaper to use. For example, the average transaction only costs around $0.08 using PancakeSwap. 

Pancake DeFi

PancakeSwap supports a variety of DeFi functions. For example, users can secure passive rewards using staking and farming protocols. Additionally, PancakeSwap was designed to support the creation and trading of Non-Fungible Tokens (NFTs). Notably, PancakeSwap has issued a line of NFT collectibles to lottery winners. To simplify the creation of these unique digital assets, the network developed a BEP-721 protocol. The BER-721 standard also supports FNFTs (fractional Non-fungible tokens).

MDEX

MDEX is a next-generation DEX that seeks to solve some of the most pressing market issues. Specifically, MDEX operates as a multi-chain DeFi ecosystem. The network leverages Swap and Bridge protocols to simplify the transfer of assets across blockchains. 

As such, the platform is top-rated. Its native smart token, MDX, ranks among the top tokens in daily trading volume. In addition, MDEX has secured over +$3.5 Billion in locked liquidity.

MDEX is the first DEX built on the HECO blockchain. HECO is the native blockchain of the popular crypto exchange Huobi. This blockchain was built specifically to support DeFi activities. HECO provides scalability and security from an easy-to-use interface.

Trading Mining

One of the coolest features that MDEX users enjoy is Trading Mining. The Trading Mining feature rewards traders for every transaction they make. These rewards help drive trading volume in the network. In this way, MDEX alleviates liquidity concerns in the market.

Burning Black Hole Contest

Those seeking a little more fun in their investment strategy will enjoy the Burning Black Hole Contest. This unique competition combines a deflationary mechanism with a lottery protocol. Users contribute MDX to the burning pool to enter the competition. This eliminates coins from circulation, which drives up demand versus supply. Notably, the winners receive some exclusive prizes, including a share of 10% of the burning pool. 

Top DEXes to Know

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The DEXes listed above have proven to be reliable and secure platforms. However, depending on your particular investment strategy, you may find one of these platforms better suited to meet your overall goals. Regardless of your experience level, these DEXes can help you trade your digital assets more efficiently. 

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David Hamilton

@DavidtheWriter

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David Hamilton, aka DavidtheWriter, has published thousands of articles on cryptocurrencies across many top-performing platforms. In addition, he has written multiple whitepapers for successful crowdsales and has even pioneered his own token launch strategy called the ISO (Initial Story Offering).

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