Ajasa Usman 👋
A Passionate Blockchain Developer 🖥️ & Product Designer having 5 years of Experiences over 6+ Country Worldwide.
Client For:
Dex Swap - DApp
Overview
A DEX Swap, or Ethereum Virtual Machine (EVM) Decentralized Exchange, is a decentralized exchange platform that operates on blockchains compatible with the Ethereum Virtual Machine. These blockchains include Ethereum itself and others like Binance Smart Chain, Polygon (formerly Matic Network), Avalanche, and many more.
Key Components
Decentralization: EVM DEXs operate without a central authority, relying instead on smart contracts deployed on the blockchain. This ensures that transactions are executed peer-to-peer directly between users.
Smart Contracts: Transactions on EVM DEXs are facilitated by smart contracts. These contracts automatically execute trades based on predefined conditions, ensuring transparency and security.
Assets: EVM DEXs typically support tokens that conform to the ERC-20 standard (for Ethereum) or other compatible token standards on other EVM-compatible blockchains. Users can swap these tokens directly through the DEX interface.
User Interface: EVM DEXs provide a user-friendly interface (often web-based) where users can connect their cryptocurrency wallets (such as MetaMask) and initiate trades easily. The interface displays real-time prices and liquidity pools for different token pairs.
NOTE : Dex Owner / Admin can earn fee from each trade on the Dex
How EVM DEX Swaps Work
Token Pair Selection: Users select the tokens they want to trade from a list of available pairs.
Price and Liquidity: The DEX interface displays the current exchange rate and available liquidity for the selected token pair, which is sourced from liquidity pools contributed by users.
Transaction Execution: Upon confirming the swap, the transaction is initiated directly on the blockchain through a smart contract. This transaction swaps the specified amount of one token for another at the current market rate, minus any transaction fees.
Transaction Confirmation: Once the transaction is processed and confirmed on the blockchain, the swapped tokens are transferred to the respective parties' wallets.
Security Measures
- Uniswap: One of the earliest and most popular decentralized exchanges built on Ethereum.
- SushiSwap: A community-governed DEX forked from Uniswap, offering additional features like yield farming and staking.
- PancakeSwap: Built on Binance Smart Chain, offering similar functionality to Uniswap but with lower fees and faster transaction times.
Popular EVM DEX Platforms:
In Summary:
These platforms and others like them have contributed significantly to the growth of decentralized finance (DeFi), providing users with more control over their assets and fostering innovation in the cryptocurrency space.
