As Decentralized Finance (DeFi) expands, Decentralized Exchanges (DEXs) on layer 2 (L2) scaling solutions like Arbitrum are gaining popularity for their improved transaction time and cost. In this article, we'll explore the top five DEXs on Arbitrum and their standout features.

Arbitrum:

Arbitrum is a layer-2 network built on Ethereum that provides developers with a cost-effective solution for creating and deploying highly scalable smart contracts. By utilizing the Arbitrum chain, developers can leverage Web3 applications and deploy smart contracts with increased efficiency, benefiting from lower transaction costs and faster processing times. The flagship product of the Arbitrum team, Arbitrum Rollup, is an Optimistic roll-up protocol that maintains the same level of security as Ethereum, ensuring robustness and reliability.

Zyberswap:

It is one of the first DEXs on Arbitrum, features an automated market-maker with reportedly the lowest fees. It uses Governance Voting to involve users in decision-making and has a fixed supply, linear emission model, combined with a burning mechanism. Zyberswap launched with 10k $ZYB tokens distributed at genesis.

Camelot DEX:

Camelot is built on Arbitrum, offers an ecosystem-focused DEX with custom infrastructure for deep, sustainable, and adaptable liquidity. Its AMM supports volatile and stable swaps, and introduces dynamic directional fees for trading pairs. Camelot also has a launchpad to support new protocols launching on Arbitrum.

Uniswap (V3):

A pioneer of AMM, provides services for Ethereum layer-two solutions in its V3 version. It allows trading between different ERC-20 token pairs, reducing slippage. Protocol fees were introduced to support further development. Uniswap has a significant total value locked (TVL) and generated substantial fees in March.

Trader Joe:

Trader Joe offers a range of services, including token swaps, staking, yield farming, borrowing and lending, and more. It expanded to Arbitrum to gain more users and launched its AMM liquidity book on the BNB Chain. Its liquidity book is known for its efficiency in maximizing real yield generation for liquidity providers and reducing swap costs for traders.

Uniswap (V3):

A pioneer of AMM, provides services for Ethereum layer-two solutions in its V3 version. It allows trading between different ERC-20 token pairs, reducing slippage. Protocol fees were introduced to support further development. Uniswap has a significant total value locked (TVL) and generated substantial fees in March.

Sushiswap:

Sushiswap, a DEX with an AMM, is available on Arbitrum and other EVM-compatible layer-two blockchains. It allows users to create their token pairs and provides liquidity. Sushiswap follows a more inclusive governance approach and has a considerable TVL and fee generation.

The adoption of DEXs on Arbitrum is an exciting development for DeFi, offering seamless and cost-effective trading experiences. As Ethereum continues to evolve with its proof-of-stake adoption, improvements to Arbitrum's infrastructure will further enhance user experience and promote wider adoption of DEXs. The optimization of Ethereum's infrastructure through layer 2 scaling solutions is essential for its continuous development and mainstreaming in the world of DeFi.