As an educated DeFi investor, it’s wise to understand the differences between pioneering DEXs (decentralized exchanges). By learning what makes Uniswap vs PancakeSwap vs META EXCHANGE different, you will better understand when to employ each network. Notably, each of these DEXs introduces proprietary technology to streamline peer-to-peer trades.
Uniswap was the first DEX to see real success in the market. This platform was designed to facilitate the exchange of ERC-20 tokens. These tokens had become popular following the ICO boom of 2017. Today Uniswap operates as the largest Ethereum Dapp and DEX globally.
This success comes from a variety of factors. For one, Uniswap provides open enrollment for users and coin listing for firms. Anyone can utilize the exchange simply by connecting an ERC-20 compatible wallet such as Metamask. There are no KYC or AML requirements, so the entire onboarding process is simplified.
Notably, Uniswap’s technical structure differs from CEXs (centralized exchanges) in some key ways. For one, Uniswap operates as an AMM (automated market maker). AMMs don’t rely on the order book to determine the value of a coin. Instead, users trade directly with smart contracts via liquidity pools. In the Uniswap ecosystem, every token is paired against ETH. The protocol conducts ERC-20 to ERC-20 swaps via transactions that convert ERC20a to ETH, and then to ERC20b in a single action.
One of the biggest reasons Uniswap has seen such success is its open coin listing feature. Any project can seed a liquidity pool on Uniswap. You only need to provide your project token and a corresponding value of ETH to start a liquidity pool. In this way, Uniswap revolutionized crowdfunding. It enabled businesses to gain affordable access to public funding in a manner much more efficient than traditional means.
Problems with Uniswap
Uniswap revolutionized the sector but it wasn’t without its shortcomings. For one, the exchange was subject to the rising gas prices of the Ethereum network. These fees continue to plague Uniswap users. Recently, these fees hit new all-time highs. Consequently, they helped drive a push for alternative DeFi networks. One such network that appeared from this chaos was the Binance Smart Chain. (BSC)
Also, the open nature of the network means that investors must be extra vigilant when researching projects. There are already a number of copycat contracts and other scams that plague the DEX. For these reasons, it’s vital to always double-check contract addresses.
Pancake Swap was built to eliminate many of the most common problems Uniswap users encountered. This DEX featured lower fees, faster transaction times, and more features than Uniswap. The protocol was built on the Binance Smart Chain. This fourth-generation blockchain was built to support all the latest DeFi features including staking, yield farming, P2P lending, and NFTs (non-fungible tokens).
PancakeSwap officially launched on September 20, 2020. Within weeks it rose to become the largest Dapp on the BSC. It’s also the largest yield farming and staking protocol on the BSC operating today. The developers created PancakeSwap to streamline BEP-20 token trades. BEP-20 is Binance’s version of the ERC-20 standard introduced by Ethereum in 2017.
PancakeSwap supports staking and farming pools. These protocols enable you to earn rewards in exchange for providing liquidity to projects or pools. New traders prefer staking over trading because it provides more reliable ROIs. Notably, PancakeSwap’s staking features operate very similar to Uniswap’s.
Problems with PancakeSwap
One of the biggest problems with PancakeSwap is a lack of liquidity. The fact that the BSC is still relatively new means that there are far fewer BSC users. Consequently, there are many projects on the exchange that struggle to garner any liquidity.
The META EXCHANGE seeks to revolutionize the DEX sector in some unique ways. The platform will enable anyone to trade META1 Stable coins and other top-performing digital assets in a secure manner. The developers behind the concept went to great lengths to create an effective, high-performance, decentralized exchange that is capable of providing a fluid trading experience to the market.
The META EXCHANGE operates on the fourth-generation Meta1 blockchain. As such, it enjoys top-tier scalability on par with that of NASDAQ. The technical structure of the network enables real-time settlement. Additionally, the exchange operates as a gateway to other popular blockchains. Currently, there are 10 major markets fully integrated with more networks set to join.
The META EXCHANGE is a full-service platform designed to be user-friendly. You don’t need previous experience to buy or sell digital assets on the platform. Additionally, you can access real-time transaction data and account information directly from the dashboard. In this way, the META EXCHANGE provides DEX users with more features than most.
META 1 Coin
The META1 coin operates as the main utility token of the META EXCHANGE. This token is the first self-appreciating gold-pegged stablecoin to enter the market. As such, it provides the network with added value. Additionally, the developers have created a Private Banking Array of diverse multijurisdictional bank systems called META INVESTMENT BANK.
Traders gain instant access to liquidity when using the exchange in tandem with the non-banked debit cards provided by the network. This approach ensures adequate liquidity for the DEX. Early DEXs, such as Uniswap have encountered liquidity issues when dealing with low-volume projects. The META EXCHANGE eliminates many of these concerns via its proprietary approach.
So What’s the Best Option?
Now that you understand some of the key differences between these exchanges, it’s important to mention that there’s no one-size-fits-all answer to this question. Uniswap is well proven in the market and has grown to become a vital component of the DeFi space. On the other hand, PancakeSwap offers much lower fees and a more responsive market. Also, the META EXCHANGE offers a variety of features and coins that you can’t find on any other platform. For these reasons, it’s wise to get more familiar with all of these DEXs to broaden your DeFi horizons.