Top 5 Innovative DEXes

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What's the most innovative new DEX? You might think it's Uniswap v4, but there are a few lesser-known, innovative DEXes that could surprise you. Here the top 5 DEXes you should try out right now: 🧵

Meet @mavprotocol A DEX named the "most serious challenger to Uniswap’s dominance since v3" by Delphi Digital. As the pioneering Dynamic Distribution AMM, Maverick automates liquidity strategies previously needing daily manual maintenance.

Maverick's core architecture is built around liquidity bins, similar to Trader Joe’s model. The price discovery happens within the bin using constant-sum formula, allowing zero-slippage trades.

You can choose one of four modes to provide liquidity, depending on your strategy: Static, Right, Left, or Both. E.g., Right mode allows LPs to take advantage of upward price movement. Each has its own unique set of advantages and risks, so be careful with your strategy!

Maverick's no slippage within the bin offers capital efficiency, particularly effective for LSTs and similar assets where prices don't diverge significantly. It's a Curve's territory Maverick is coming after. It's using veTokenomics with veMAV to create a flywheel effect.

Next up, Ambient, claiming to be the most efficient Ethereum-based DEX in existence. It achieves this with a hybrid model of two-sided AMMs, combining concentrated and ambient constant-product liquidity. twitter.com/ambient_finance/status/1669677843092242433

Ambient combines concentrated ("UniV3 style") and ambient ("UniV2 style") liquidity in the same pool, ensuring better and more liquid swaps for traders. It also employs features like dynamic fees, Just-in-Time (JIT) protection, and single smart contract & gas optimizations.

One standout feature in Ambient is its implementation of flash accounting, which makes managing range orders cheap, fast, and easy. It also has account abstraction, which allows for actions to be executed with an EIP-712 message. twitter.com/0xdoug/status/1669770093293699086

Third, @ShellProtocol More than just a DEX, it's on a larger mission with the V2 Shell. The Ocean, the core feature of Shell v2, serves as a universal adapter, streamlining the interaction between various DeFi primitives.

The Ocean introduces a host of innovative features, including a single ERC-1155 ledger for all tokens, a standardized accounting framework for all primitives, and tracking intermediate balance updates in memory. Too much to cover in one single thread.

The first primitive launched on the Ocean is Proteus, Shell's AMM engine. Proteus allows single-sided liquidity provision, meaning you can provide liquidity with just one token or two unevenly balanced tokens. It also offers migration of LP funds through a single swap.

Shell Protocol is also diving into NFT fractionalization and The Government Toucan AMM - NFT Automated Market Maker using the Proteus engine. And yes, Shell is doing a $SHELL token airdrop via a points system. Check it out if you're interested. twitter.com/ShellProtocol/status/1641218965883191297

Next one is @SwaapFinance v2. The main issue with AMMs for LPs is the negative returns due to impermanent loss. Swaap v1 proved profitable on-chain LPing is possible, but also posed challenges with integration complexity and oracle latency.

Swaap v2 introduces a structure that handles on-chain asset balances and settlement, while shifting quotations off-chain. Even Swaap v1 managed just 0.1% of Impermanent loss over a year on a WBTC/WETH/USDC pool. The v2 make it even better. twitter.com/SwaapFinance/status/1676570722112610305

Last, @MangroveDAO, which focuses on Total Value Unlocked (TVU) rather than TVL. This means LPs do not 'lock' in their liquidity but promise it, and only deliver when called upon. Could this make Mangrove the most liquid DEX in the industry?

Mangrove addresses several DEX challenges: slippage, revenue dilution from arbitrage traders, fragmented liquidity across pools, and capital inefficiency. The promised liquidity can be shared, borrowed, lent, and at the same time displayed on Mangrove for a trade.

The key features of Mangrove's model include: Reactive Liquidity: Offers can yield elsewhere on the blockchain until taken. Last Look: Offers can be canceled if market conditions change unfavorably. Persistence: The code can automatically repost itself on the order book. twitter.com/MangroveDAO/status/1669713815745748992

There are more innovative DEXs to explore: @carbondefixyz enables automated trading strategies with custom limit and range orders that are MEV-resistant @ButtonDeFi is launching a DEX for LSD pairs with a novel "reservoirs" concept. @eulerfinance is cooking EulerSwap 👀

Overall, there’s a lot innovation in the DEX space, so don’t let bear market quietness fool you. When the bull market comes back, we need know where to look for max gainz.

I originally shared this story on my blog last week. Subscribe to my blog for: • In-depth DeFi insights • Actionable strategies • Coverage from lending protocols to tokenomics You can find the link to subscribe in my bio @DefiIgnas (Twitter penalizes sharing links).