How Does LAVA Compare With Other DEXs?

DeFi, short for Decentralized Finance, is the idea that traditional financial models (banks, loans, mortgages…) can be recreated using blockchain technology, eliminating costly middlemen, making every process simpler, more accessible, and faster.

DeFi is often called Open Finance, because it offers an easier point of entry for people that otherwise could be left out of financial services.

There are over $40.64B assets locked in DeFi protocols as of March 3rd (Source: https://defipulse.com/)

The incredible DeFi growth has been made possible in large part because of decentralized exchanges (DEXs). They are automatic and unstoppable exchanges where people can swap their crypto assets with other users, without the need of control and supervision from a central entity.

We are going to explore the key differences between LAVA and other DEXs. All Marketcaps are based on today’s CMC data.

LavaSwap vs Uniswap ($8B Marketcap)

Uniswap is a protocol for creating liquidity and trading ERC-20 tokens on Ethereum. It eliminates trusted intermediaries and unnecessary forms of rent extraction, allowing for fast, efficient trading.

Key differences:

  1. We have faster transactions and cheaper gas fees because we are on HECO instead of ETH.
  2. LavaSwap will feature a cross chain bridge that will bring massive new assets and staking opportunities exclusively to LAVA.
  3. We reserve a 10% of LAVA for the team instead of 21.266% of UNI tokens.
  4. We do not have private investors. Most of our LAVA tokens (90%) are used to improve the ecosystem, while 18.044% of UNI tokens are reserved to investors (more chances of a dump).
  5. We’re taking full advantage of the Huobi community by providing arbitrage opportunities amongst HECO tokens that are hosted on Huobi.com in the near future.

LavaSwap vs SushiSwap ($2.2B Marketcap)

SushiSwap is an automated market-making (AMM) decentralized exchange (DEX) currently on the Ethereum blockchain. The Sushiswap protocol realigns incentives for network participants by introducing revenue-sharing & community driven network effects to the popular AMM model.

Key differences:

  1. We have faster transactions and cheaper gas fees because we are on HECO instead of ETH.
  2. LavaSwap will feature a cross chain bridge that will bring massive new assets and staking opportunities exclusively to LAVA.
  3. LAVA does not have inflation until year 3, while the inflation model of SUSHI is really aggressive.
  4. LavaSwap trade fees are shared directly between liquidity providers, while SushiSwap rewards LP with SUSHI tokens.
  5. LAVA has buy-back and burn programs.
  6. Chef Nomi (original co-creator) scandal puts in question the community-driven approach of SushiSwap.
  7. We’re taking full advantage of the Huobi community by providing arbitrage opportunities amongst HECO tokens that are hosted on Huobi.com in the near future.

LavaSwap vs PancakeSwap ($1.6B Marketcap)

PancakeSwap is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker (AMM) model where users trade against a liquidity pool.

Key differences:

  1. We have slighly faster transactions and cheaper gas fees because we are on HECO instead of BSC.
  2. LavaSwap will feature a cross chain bridge that will bring massive new assets and staking opportunities exclusively to LAVA.
  3. LAVA does not have inflation until year 3.
  4. LAVA burns are more aggressive (8.3% of all fees on the platform), while CAKE burns are tied to some of their products (like a 10% burn of CAKE spent on lottery tickets).
  5. LAVA has a buy back program, while CAKE has not.
  6. We can offer higher APYs in some pools because we are just starting.
  7. We’re taking full advantage of the Huobi community by providing arbitrage opportunities amongst HECO tokens that are hosted on Huobi.com in the near future.

HECO DEXs: LAVA vs MDEX ($430M Marketcap)

LavaSwap and MDEX are both built on top of HECO, and we can easily see why: faster transaction speeds, lower transaction fees, and a huge community backing the Huobi Eco Chain.

We feel that before comparing both platforms, we need to ask the following question:

Who owns your exchange?

DeFi is about true community ownership, simple access and open protocols for all. We believe that the true DeFi spirit is creating a community-driven “own and share” culture.

The people participating in the early rise of a DEX should be rewarded.

On MDEX, 34% of DEX fees go directly to the team, while 13% go to a buy-back and burn program [Link]

On LAVA, 83% of DEX fees go directly to Liquidity Providers.

The other 17% is divided between buy-back & burn program, and further development of LavaSwap [Link]

MDEX’s buy-back and burn program (13% of fees) is really nice for MDX holders, and they have a small % reserved to purchase MDX from the secondary market and distribute them, which is great for MDX stakers, but:

  • 34% of fees go to the team.
  • 0% of fees go to Liquidity Providers.
  • Around 22% of fees go to “promote the development of ecological projects”, which is at the discretion of their team.

The fee structure for MDEX is not good for Liquidity Providers

For us, liquidity is one of the most important aspects of a DEX. It’s what makes users not have to rely on a centralized entity to trade, and opens access to new and innovative (free listed) tokens.

Liquidity providers take risks in order to help grow a DEX from the start, and in our opinion they should be rewarded for their efforts.

Our model is about ownership and sharing. We reward every participant in our ecosystem: holders (buy & burn), stakers (high APYs, exciting pools) and liquidity providers (83% of fees).

That’s the DeFi movement!

Another key difference between LAVA and MDEX is that they have 7% of their token distribution for private investors.

At LAVA, we don’t have private investors

We feel that means less chances of investors dumping into supporters.

🔥🔥🔥

LAVA is a the first interoperable decentralized cross-chain swap protocol powered by Huobi Eco Chain. We believe that DeFi should be fun and easy to use for everybody.

Be sure to follow us on Twitter, Telegram, and Medium for the latest LAVA news!

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