Top 5 Largest AMMs On Ethereum – March 2022

AMM (Automated Market Maker) is the liquidity center of an ecosystem, some outstanding examples of AMM of Ethereum are Curve, Uniswap, Sushiswap, Balancer, Bancor which allows its users to both supply liquidity to earn passive income or exchange between various assets. Let’s find out the top 5 Largest Dexs On Ethereum with the highest total TVL in the past 7 days. Before that, let’s learn about TVL and why it is important in the ecosystem.

What is Total Value Locked (TVL)?

Total value locked (TVL), represents the sum of all assets deposited in decentralized finance (DeFi) protocols earning rewards, interest, new coins and tokens, fixed income. If you’ve been utilizing DeFi tracking sites, chances are you’ve come across total value locked (TVL) as a reference point. Simply defined, total value locked reflects the number of assets that are currently staked in a certain protocol: This figure does not represent the number of ongoing loans, but rather the entire amount of underlying supply that is totally secured by a specific application by DeFi.

The boom of the DeFi or Decentralized Finance has seen the birth of many platforms that offer new and innovative tools, now TVL of ecosystem Ethereum is $108.32B with Curve Dominance: 14,3%. The highest time ethereum TVL reached $164.2B is one of the leading ecosystems in TVL with Dapps. So for AMM, TVL most specifically evaluates the liquidity of a particular defi protocol. Let’s take a look at the top 5 AMM Dex on Ethereum.

TVL On Ethereum

Curve Finance (CRV)

The first position is Curve Finance with TVL $17.77B. CRV is an Ethereum token that powers Curve.fi, a decentralized exchange, and an automated market maker protocol. The protocol is designed to make it easy to swap between similar ERC-20 tokens, primarily stablecoins (like USDC and DAI) and Ethereum-based Bitcoin tokens (like WBTC and renBTC).

In order to minimize impermanent loss, the protocol only hosts pools of similar assets. This means you can provide USDC-DAI-USDT liquidity on Curve. The CRV token can be locked for various periods of time (up to 4 years) in order to vote on governance and claim protocol fees as a reward.

Outstanding Fetures

Curve Finance (CRV) or Curve is a decentralized exchange (or DEX) that specializes in stablecoin trades. In short, it conducts operations similar to those performed by Uniswap, with the exception that Curve concentrates on assets that have a one-to-one parity with national currencies. Curve has been popular among stablecoin traders and liquidity providers aiming for minimum slippage to reduce losses.

And not only that, Curve offers a simple interface and some of the smart contracts safest in the entire DeFi ecosystem. This together with wide support of stablecoins among which we can find DAI, USDC, USDT, BUSD.. as well as pairs BTC (RenBTC, WBTC and HBTC), allowing to operate with all of them quickly, in a process without custody and in a decentralized way.

Some information about Curve Finance

Rank: 82

Market cap: $929,571,560

Volume 24h: $187,468,701

More details: https://coincu.com/currencies/crv-curve-dao-token/

UNISWAP ($UNI)

The second position is Uniswap($UNI) with TVL $7.53B. Uniswap just announced version 3.0, which considerably refines the notion of an LP in an AMM. Big picture, with this new version, Uniswap signaled that it’s laser-focused on being the best AMM, full stop. It’s not trying to expand into other areas of DeFi. Instead, it wants to continue to lead in its niche.

Outstanding Fetures

• An automated liquidity protocol is used by Uniswap to tackle the liquidity problem of centralized exchanges. This operates by incentivizing exchange traders to become liquidity providers (LPs): Users on Uniswap pool their funds to form a fund that is used to perform all deals on the platform. Each token listed has its own pool to which users can contribute, and the values for each token are calculated using a mathematical algorithm operated by a computer.

• Uniswap will allow LPs to customize fees somewhat on pools in version three, so they could, for example, charge a higher fee on less frequently traded pairs.
• With Uniswap version 3.0, though, a trader will be able to define their liquidity examples they participating in trades 01 USDC should generally trade for 1 DAI, because both are pegged to the dollar. Yet in a simple AMM, a big trade can knock the prices for the two widely off the mark. But with Uniswap version 3.0 trader know DAI sells for no more than 1.01 and no less than 0.99 USDC.

Some information about Uniswap

Rank: 25

Market cap: $6,068,104,035

Volume 24h: $188,577,602

More details: https://coincu.com/currencies/uni-uniswap/

SushiSwap ($SUSHI)

The third-place belongs to Sushiswap ($sushi) with TVL $3.99b a fully decentralized protocol for automated liquidity provision on Ethereum. Holders of SUSHI can participate in community governance and stake their tokens to receive a portion of SushiSwap’s transaction fees. SushiSwap has a reputation as the community-powered AMM.

Outstanding Fetures

• Swap: Trade one cryptocurrency for another, such as turning your USD Coin (USDC) into Ethereum (ETH).
• Farm: Deposit crypto into one of SushiSwap’s liquidity pools to earn rewards. Liquidity pools contain combinations of two or more cryptocurrencies, and you must deposit an equal amount of each one.
• Stake: Deposit your SushiSwap tokens to earn rewards.
• Lend: Provide crypto for others to borrow and earn interest on it.
• Borrow: Borrow crypto after providing collateral.

Some information about Sushiswap

Rank: 141

Market cap: $374,649,823

Volume 24h: $117,178,508

More details: https://coincu.com/currencies/sushi-sushiswap/

BALANCER ($BAL)

Fourth place is none other than Balancer ($BAL) with $2.76b an automated market maker that lets anyone create or add liquidity to trading pools while earning customizable trading fees. Balancer pools can have up to 8 tokens and each token can be individually weighted within the pool, such that one token can make up as little as 2% of the total.

Outstanding Fetures

Balancer has a sleek UI, but under the hood, there are some sophisticated mechanics at work that allow such dexterity in LP management.

There are three variations of the Balancer pool: Private Pools, Shared Pools, and Smart Pools.

• Private Pools: There is only ever one single LP in charge of the pool.
• Shared Pools: Liquidity can be added by anyone. Ownership of the pool is tracked by the Balancer Pool Token (BPT).
• Smart Pools: Similar to Shared Pools, liquidity can be added by anyone, with ownership tracked by BPT. The main difference is that this pool is operated by a smart contract that enables users to readjust balances, weighting, and fees. Pools are owned by liquidity providers that can create pools and profit from the trading fees. This model is similar to that of Uniswap, but the key difference is that LPs on Balancer can use  ERC-20 tokens of their choice to create a pool and also set custom trading fees.
• Though there are currently no fees from trades on Balancer, this could soon be implemented.

Some information about: Balancer

Rank: 405

Market cap: $78,123,266

Volume 24h: $15,065,565

More details: https://coincu.com/currencies/bal-balancer/

BANCOR ($BNT)

With TVL $972.02m Bancor is the fifth place, BNT is an on-chain liquidity protocol that enables automated, decentralized staking protocol with Single-Sided Liquidity & 100% Impermanent Loss Protection.

A portion of total trading fees are distributed to Liquidity Providers, or LPs, that deposit tokens into Liquidity Pools. Trading fees also protect user deposits from Impermanent Loss while minted and burned BNT supply maintains the constant market function for continuous token pricing.

Outstanding Fetures

• Bancor is a decentralized financial network that seeks to provide liquidity to small- and micro-cap coins and returns for liquidity providers.
• Bancor utilizes two token layers that facilitate its liquidity pools and functionality: BNT and ETHBNT.
• Bancor and its competitor Uniswap are the leaders in a new wave of decentralized financial systems.

Some information about: Bancor

Rank: 107

Market cap: $570,566,903

Volume 24h: $17,455,787

More details: https://coincu.com/currencies/bnt-bancor/

Conclusion

With the needs of users, the Defi market is expanding, in which AMM is an indispensable part if defi wants to grow. With this article, hope to bring a more realistic and overview view of the AMM array in the ethereum ecosystem.

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Alan

Coincu Ventures