Arbitrum is a Layer 2 scaling solution designed for Ethereum offering an optimistic rollup protocol that speeds up and reduces the cost of transactions. Its security level is on par with Ethereum making it an attractive choice for building decentralized exchanges (DEXs) that require fast transactions and low gas fees.
The platform has continued to become popular in 2023, at times surpassing Ethereum in terms of daily active addresses. This is particular true after the distribution its arb ($ARB) tokens to projects that were built on the network, in March and April 2023.
As of Q1 2023, Arbitrum was the most dominant chain when it came to blockchain activity with over 125% growth.
The layer 2 solution has seen an increase in projects building on its platform hence an increase in number of participants trading and investing on various protocols. With over $2.26 billion in total value locked (TVL), Arbitrum is fourth after Ethereum, Tron, and BSC when it comes to leading DeFi chains.
Below are the top 10 leading DEXs on Arbitrum based on 24hr trading volume as listed on CoinMarketCap and CoinGecko.
1.) UniSwap
UniSwap is a decentralized exchange (DEX) that pioneered the automated market maker (AMM) model. The introduction of the AMM allowed users to trade against a liquidity pool offering a constant source of liquidity with its product formula. The V3 version of the exchange presents services to Ethereum layer-two solutions.
The AMM model premiered in the V1 version of the exchange, with the V2 version allowing trading between different ERC-20 token pairs instead of swaps between ETH and ERC-20 tokens.
As of April 2023, UniSwap had a verified:
- Spot trading volume (24 hrs) of over $230 million
- Total trading volume (24 hrs) of over $237 million
2.) Camelot
- Over $21 million in spot trading volume
- Over $40 million in total trading volume
3.) ZyberSwap v3
ZyberSwap is one of the first decentralized exchanges (DEX) with an automated market-maker (AMM) on the Arbitrum blockchain. Compared to its competitors, ZyberSwap allows the swapping of crypto assets with the lowest fees.
Rewards from staking and yield farming are among the most lucrative in the entire Arbitrum ecosystem. Additionally, ZyberSwap aims to fully involve its users in decision-making. All major changes are decided via governance voting.
Here are the volumes as of April 2023:
- 24-hr spot trading volume – about $10 million
- 24-hr total trading volume – about $10 million
4.) Curve (Arbitrum)
- Extremely efficient stablecoin trading
- Low risk, supplemental fee income for liquidity providers
without an opportunity cost.
- Over $9 million in spot trading volume
- Over $9 million in total trading volume
on the Arbitrum network.
5.) Trader Joe V2.1
Trader Joe is a multi-chain decentralized trading platform that combines DEX services with DeFi lending to offer leveraged trading. Users of the platform can trade (AMM exchange), participate in yield farming, stake, and borrow.
As of April 2023, Trader Joe recorded:
- Over $4 million in spot trading volume
- Over $5 million in total trading volume
on the Arbitrum network.
6.) Dodo (Arbitrum)
DODO is a next-generation on-chain liquidity provider leveraging the Proactive Market Maker algorithm (PMM) to provide pure on-chain and contract-fillable liquidity for everyone.
As of April 2023, Dodo has a:
- Spot trading volume of over $3 million
7.) SushiSwap
SushiSwap is a decentralized exchange (DEX) with an AMM (automated market maker). It utilizes smart contracts to enable frictionless trading of different token pairs. Users can create their own token pairs and provide liquidity to them.
Initially a fork of UniSwap, another famous DEX, the exchange was one of the earliest to adopt the model of the automated market maker. It is currently available on almost all EVM-compatible layer-one blockchains and multiple layer-two solutions for Ethereum, Arbitrum being one of them.
As of April 2023, Trader Joe recorded:
- Over $3 million in spot trading volume
- Over $99 million in total trading volume
on the Arbitrum network.
8.) Balancer v2 Arbitrum
Balancer is a non-custodial portfolio manager, liquidity provider, and price sensor protocol. Balancer V2 offers a generalized protocol for automated market makers.
As of April 2023, Trader Joe recorded:
- Almost $3 million in spot trading volume
- Over $4 million in total trading volume
on the Arbitrum network.
9.) Trader Joe v2
Launched in February 2023, version 2 of Trader Joe has gained popularity quickly, helped in part by various incentives put in place to encourage traders to the platform.
According to CoinGecko, currently, there are 21 coins and 30 trading pairs available on the exchange.
As of April 2023:
- 24-hr trading volume is reported to be at $900,000
The most active trading pair is WETH/USDC with a 24-hr volume of over $300,000.
10.) Ramses Exchange
Ramses is a relatively new decentralized automated market maker (AMM) that launched on Arbitrum in February 2023.
The protocol operates through the RAM token and veNFTs. Ramses incentivizes liquidity by providing token lockers with the capability to direct protocol emissions towards token pairs of their choice. In return, lockers receive an anti-dilutive rebase, a portion of the swap fees generated by their selected pairs, and any bribes directed towards these pairs.
As of April 2023, Trader Joe recorded:
- Over $800,000 in spot trading volume
- Over $1 million in total trading volume
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