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Check the rate differences in Balancer, Curve and Uniswap

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Aiming to help users choose which decentralized exchange (DEX) to use, analyst Yule Souza Andrade compiled a comparison between the main platforms. According to the analyst, understanding the costs of each is critical to capital efficiency.

DEX is the platform used to exchange tokens built on the same blockchain without the need for third party custody. Currently, DEXs are responsible for the largest consumption of Gas in the Ethereum network.

These platforms became popular because, unlike centralized exchanges, with DEX, the investor remains with his cryptocurrencies, having control over them.

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Gas consumption by DEXs

According to The Block’s statistics, the contract related to exchanging tokens is one of the most resource-consuming contracts on the blockchain.

Although these systems are unlicensed in nature, trading tokens using DEX is expensive and a burden for some users.

But, according to the analyst, if investors choose their DEX well, they can save thousands of dollars.

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Comparation

Andrade explained that each DEX has its own method of making trades. So, to compare the rates of different platforms, he selected a common denominator.

“For each of them, a Dune panel was set up. They can be found in: Balancer, Curve,  Uniswap V2,  Uniswap V3″, he said.

As a result, the analyst’s study revealed that there are no significant differences between the DEXs analyzed.

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“Three pair pools shared by Balancer and Uniswap V2 and V3 were selected for detailed comparison – USDC/WETH, WBTC/WETH and LINK/WETH. As Curve’s method is different, some of its pools are chosen to integrate the image. but they will not participate in the comparison”, he said.

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“The biggest impact on transaction Gas is the number of processes that must be performed for the transaction. The difference between the exchanges of 1 and 2 processes is more significant than the difference between DEX”, he observed.

In addition, according to the analyst, depending on the size of the transaction, there are other switching cost factors. As an example, he cited LP or slippage fees, which can have a more significant impact on total cost.

“From one perspective, in the scenario of Ethereum at $2,000 with 50 gWei gas, the difference between choosing Uniswap V2 instead of V3 for switching 2 WBTC/WETH processes will save $3.12,” he concludes. .

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