Best Automated Market Makers in DeFi World

Posted by alicejenifferze on February 17th, 2022

Automated Market Maker is a mechanism that executes the trading of digital assets without any permission and trade executes automatically with the use of liquidity pools that replaces buyers and sellers. It is a type of decentralized exchange (DEX) protocol that relies on the mathematical formula to set the price for the assets. This formula is the replacement of order books in traditional exchanges where the price of the assets is determined by pricing algorithms.

Best Automated Market Makers in DeFi World

Listed here are the top DeFi Protocols, which act as the best Automated Market Makers in the cryptocurrency globe.

Pancakeswap

PancakeSwap is one of the famous DeFi based Protocol which aims to provide Automated Market Making (AMM) by being a #1 liquidity provider. This open-source DeFi based exchange is built on the Binance Smart Chain (BSC) through which the platform users can swap BEP-20 tokens.

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Uniswap 

Uniswap is a decentralized open-source protocol that is being the first Decentralized AMM launched in November 2018, which provides instant, automated liquidity without relying on any order book.

This protocol leverages the liquidity providers who deposit ERC 20 tokens into the pools for support trading. To make the market stable, Uniswap relies on the mathematical equation which defines the ratios of the tokens that are held in the pool.

Curve

Curve an open-source DeFi Protocols launched in January 2020, aims to provide liquidity by functioning as a Decentralized Exchange (DEX) for the stable coins.

This can be used by both individuals and smart contracts and these curve protocols have a featured native governance token called CRV.

Balancer

Balancer defines itself as an open-source AMM which allows any users to earn any income just by leveraging their own cryptocurrency assets holdings.

Balancer distinguishes itself from the rest of the pack and it supports the customization of the ratios, trading fees and thus allowing LPs to make their funds.

Kyber

Kyber Network is the earliest AMMs to enter into the market in Feb 2018, Kyber Networks liquidity pools are not open to anyone. 

Kyber Network describes itself as a blockchain-based liquidity protocol that aggregates liquidity and it is designed in a way that allows market makers to have complete control of the pools.