Decentralized Finance (DeFi) is an application of the crypto blockchain created to disrupt how financial transaction services take place in the everyday world by making them easily accessible in the digital world. Whereas, Decentralized cryptocurrency exchange (DEX ) is the activity where both the buyer and a seller process their digital financial transactions directly, the transactions are also referred to as peer-to-peer trades.
Decentralized cryptocurrency exchange (DEXs ) functions are made possible with the help of a Decentralized Finance (DeFi) application on the crypto blockchain. The application can ensure direct cryptocurrency transactions from one crypto wallet to another. Examples of DEXs that benefit from the DeFi applications include Uniswap and Sushiswap.
Uniswap (CRYPTO: UNI)
Uniswap, in conjunction with the Decentralized Finance application, operates on the Ethereum blockchain, intending to facilitate directing trade of Ether (ETH) and Ethereum assets. The two work hand in hand to ensure direct trade is made between two traders with no middle man, the traders hold their assets directly in their wallets, and the trader's identities are hidden.
Sushiswap.(CRYPTO: SUSHI)
Like Uniswap, Sushiswap is a Decentralized Finance platform that allows direct trade, selling, and buying of cryptocurrency by using several liquidity pools. Sushiswap enables traders to lock the assets they wish to trade in a digital or smart contract. They swap the assets with another similar asset or another asset of the same value without the help of an intermediary.
Benefits of Cross-Chain DEX 2.0 on the DeFi Market
Cross Chain DEX has enabled crypto users to trade across different blockchains depending on the cryptocurrency platform they are using. This financial freedom has come along with several benefits to crypto users and the crypto platform. It has put an end to the independent interaction of blockchains and allowed different blockchains to interact with each other. They can communicate and share data. The following are some of the benefits of Cross-Chain DEX.
· It has led to the growth and development of the crypto market by ensuring greater liquidity of assets into ready cash at a faster and manageable rate.
· Users have access to a variety of assets across the entire blockchain ecosystem. Unlike when they were just limited to specific assets that are linked to their blockchain platform
· The volume of trading has increased due to the availability of various assets.
· When two different blockchains become compatible, it only means it is possible to conduct financial transactions freely with no limitations due to the blockchain you are using, unlike before, where businesses could only accept payment from clients who are using a similar blockchain.
· The users will conduct all their financial transitions using a single wallet. There is no need to have several crypto wallets to purchase different assets on different blockchains; if you can use one crypto wallet, you have to buy assets on whatever crypto platform you choose.
· The processing speed of financial transactions will be improved. The user will not have to keep logging in to different accounts to be able to purchase their assets; once logged in, you're ready to go.
