Here’s our roundup of the best DeFi dapps with low trading fees
Unforeseen fees and hidden costs can make exchanging and swapping cryptocurrency a more expensive venture than it seems at first glance. To address this concern, we have put together this guide to the 10 best cheap DeFi platforms. Now you will be able to save money by trading with the lowest fees, making your crypto experience more cost-effective. Let’s dive in!
Table of Contents
- List of The Most Popular DeFi Platforms with Low Fees
- Why these are DeFi dapps are cheap to use?
- Why DeFi platforms on Ethereum don’t usually have low trading fees?
- Stay up to date on DeFi dapps with DappRadar mobile app
Decentralized finance (DeFi) is not only the logical evolution of traditional finance, but the future of finance as we know it.
In this ecosystem, there are a multitude of platforms on which to operate. However, some of them are cheaper than others.
Below, we will delve into the most popular DeFi platforms with the lowest transaction costs.
List of The Most Popular DeFi Platforms with Low Fees
Venus Protocol
Launched in 2020, Venus Protocol is a decentralized finance (DeFi) platform operating on BNB Chain.
It seamlessly combines the functionalities of stablecoin minting, similar to those offered by MakerDAO, and algorithmic money markets, like those of Compound.
This unique integration empowers users to lend, borrow, and mint synthetic stablecoins using the same collateral, all within a single ecosystem.
With its native token VXVS, Venus Protocol stands out for its cost-effective transactions, making it an attractive choice for DeFi enthusiasts seeking low trading fees.
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Aave
Aave, initially known as ETHLend and rebranded in 2018, is a leading DeFi protocol with a primary focus on lending and borrowing.
This versatile protocol operates across multiple blockchains, such as Ethereum, Fantom, Optimism, and some others. It also has its native token, called like the project name: AAVE.
Aave has transitioned from a peer-to-peer model to a liquidity pool-based system, delivering a streamlined and cost-efficient user experience.
With competitive trading fees, Aave provides a cost-effective way to access DeFi services on various networks. However, keep in mind that using DeFi dapps on Ethereum is always more expensive when compared to Optimism, Polygon, Arbitrum or other blockchain scaling solutions.
- To know more about the project, make sure to check our complete guide about Aave.
PancakeSwap
PancakeSwap is one of the most popular decentralized exchanges (DEX) and automated market makers (AMM) out there.
It’s built on BNB Chain, but has support for other chains like Ethereum, zkSync Era, Base, and Linea. Users can seamlessly trade a variety of cryptocurrencies, provide liquidity to earn fees, and stake tokens for additional rewards.
During the years, PancakeSwap has gained popularity for its user-friendly interface and cost-effective transactions. It charges a flat fee of 0.25% per transaction, regardless of whether you are a maker or a taker.
Its native CAKE token is one of the most followed tokens on our platform, and PancakeSwap is also usually a regular top performer in DappRadar’s rankings. This shows how excellent choice it is for traders looking to optimize their DeFi activities while saving on transaction costs.
- Discover this platform in depth by reading our comprehensive PancakeSwap guide.
Uniswap
Uniswap is a pioneering decentralized exchange on the Ethereum blockchain which operates as an automated liquidity protocol. You are probably familiar with it, because of its famous logo with a unicorn.
This DeFi platform empowers users to swap multiple tokens without relying on traditional order books, resulting in efficient and cost-effective trades.
Its latest version, Uniswap V3, introduces features like concentrated liquidity or multiple fee tiers. This makes it more flexible, efficient, and profitable than Uniswap V2.
In addition to its integration with Ethereum, Uniswap expands its compatibility to several other blockchains, such as Celo, and Polygon, among others.
- Curious to know how to swap crypto and NFTs on Uniswap? Make sure to take a look at our Uniswap guide.
Benqi
Benqi is one of the most used decentralized lending and borrowing platforms that operates on the Avalanche blockchain. This DeFi platform is based on two main protocols:
- Benqi Liquidity Market (BLM). This protocol allows users to effortlessly lend, borrow and earn interest on their digital assets. Depositors who provide liquidity to the protocol can earn passive income, while borrowers can borrow on an overcollateralized basis.
- Benqi Liquid Staking (BLS). A liquid staking solution tokenizes staked AVAX to grant users the ability to utilize the yield-bearing asset within decentralized finance applications.
Benqi’s efficient DeFi services come with low trading fees, making it an attractive choice for those looking to engage in DeFi activities while minimizing costs.
Camelot
Camelot is a highly efficient DEX that supports the Arbitrum ecosystem.
It is built as a highly efficient and customizable protocol, allowing both builders and users to leverage our customized infrastructure for deep, sustainable and adaptable liquidity.
Camelot goes beyond the traditional design of decentralized exchanges. It focuses on offering a tailored approach that prioritizes composability while maintaining affordable fees.
The purpose of its native token, GRAIL, is to secure financial reserves to help further develop the project and increase its awareness.
QuickSwap
QuickSwap began life in October 2020, four months after the Polygon mainnet went live.
Similar to Uniswap, QuickSwap it’s a DEX that facilitates token swaps, liquidity provision, and yield farming, all with the advantage of Polygon’s fast and low-cost transactions.
Trading fees on the platform are 0.3% both for takers and makers, and users can get potentially lucrative staking options.
There is currently more than $129 million in total value locked on the QuickSwap and plenty of token pairings offering great rewards.
- Check out the latest news about QuickSwap Bond Program or its launch on Manta Pacific.
Trader Joe
Built on Avalanche, Trader Joe calls itself a ‘one-stop-shop decentralized trading platform’.
In essence, Trader Joe is a decentralized exchange where users can trade, farm, stake, lend and launch tokens, all in the same place.
The platform also has a native token, JOE, which is multifaceted. It forms an integral part of the project’s governance as part of its DAO, acting as a staking medium and a promotional asset.
JOE stakers receive monthly rewards in the form of platform fees. Of the 0.3% fee that users pay to trade on the Trader Joe, 0.25% goes to liquidity providers, while 0.05% goes to JOE stakers.
These competitive trading fees make it an attractive option for DeFi users on Avalanche blockchain.
SushiSwap
SushiSwap began life as the offspring of Uniswap when it forked from the latter and became its own platform. Since then, it has evolved into a fully-fledged DeFi platform, being one of the top choices of the community.
It offers features like yield farming, staking, and more, providing users with a complete DeFi experience.
In terms of commissions, SushiSwap offers 0.3% trading fees across multiple blockchains, remaining competitive compared to other similar platforms.
In addition, the platform uses bridging tokens and algorithms to find optimal trade times. Combined, these methods help SushiSwap circumvent the higher fees that centralized exchanges often charge.
- Want to get started on this platform? Then don’t miss our complete guide to SushiSwap.
1inch Network
1inch Network is a ‘decentralized exchange aggregator’ which means it searches across all platforms to find the best rates and lowest fees for your trades at that time.
The platform has 0% trading fees added, as well as no withdrawal or deposit fees. When you trade with 1inch, you only pay the fees of the exchange it uses and any transaction costs (gas fees).
Although it was originally built on Ethereum, it currently operates on a multitude of other cheaper blockchains, such as Klaytn, Aurora, BNB Chain, or Polygon.
The 1inch Network enhances the efficiency of decentralized trading across multiple blockchains, all while keeping trading fees competitive, providing users with cost-effective trading solutions.
- Discover everything you can do on this platform by visiting our ultimate guide on 1inch. Network.
Why these DeFi dapps are cheap to use?
These platforms we have just explored not only offer valuable services within the DeFi ecosystem, but stand out for providing cost efficiency and low trading fees.
One of the key factors contributing to the cost efficiency of these DeFi dapps is their strategic choice of blockchain networks.
Many of these DeFi platforms operate on multiple blockchains, some of them known for their scalability and low transaction costs.
For example, BNB Chain (BSC), Avalanche and Polygon are popular choices because they offer faster confirmation times and significantly lower gas fees compared to other important platforms like Ethereum.
Why DeFi platforms on Ethereum don’t usually have low trading fees?
Although Ethereum was one of the pioneering blockchains in the development of the DeFi ecosystem, there are several reasons why users, developers and platforms choose to operate on other blockchains.
Network congestion
Ethereum often experiences high levels of network congestion. This congestion is primarily due to its popularity and the numerous DeFi projects and users competing for limited block space.
As a result, transactions can get delayed, leading to higher fees to incentivize validators to prioritize them. This congestion often translates to unpredictably high gas fees for users.
Gas fees
Ethereum relies on a gas fee mechanism to prioritize and process transactions. Gas fees represent the computational work required to execute a transaction or smart contract on the network.
During periods of high demand, such as when DeFi markets are active, gas fees can surge significantly. Users end up paying more to ensure their transactions are confirmed promptly, making Ethereum-based DeFi less cost-effective.
Limited scalability
Ethereum’s scalability issues have been a long-standing concern. While the upgrade to Ethereum 2.0 and the switch to the Proof of Stake consensus protocol have improved network efficiency, they have not fully addressed scalability issues.
This continues to drive the competition from other blockchains and layer-2 solutions offering faster and cheaper transactions.
High demand for liquidity
Ethereum-based DeFi platforms often have a high demand for liquidity, which further increases gas fees.
Yield farming, liquidity provision, and trading activities require users to interact with smart contracts, compounding the congestion issue and increasing overall costs.
Smart contract complexity
Ethereum’s robust and versatile smart contract capabilities allow for complex DeFi protocols, but this also means more computation is required to execute transactions.
The complexities of these smart contracts contribute to higher gas fees compared to networks with simpler transaction models.
Although Ethereum remains the leader in the DeFi space, more users are looking for cost-effective alternatives by exploring other blockchain networks.
BNB Chain, Optimism and Polygon are some of these alternatives that have emerged as viable options with lower transaction fees and faster confirmation times.
Stay up to date on DeFi dapps with DappRadar mobile app
Now that you’ve discovered the best cheap DeFi platforms to save money on fees, the next smart move is to trade with low fees on the go.
With the DappRadar mobile app, you can easily keep up to date with everything happening in the decentralized finance ecosystem.
See the performance of the most popular DeFi apps, keep an eye on the NFTs in your portfolio, or identify the best trading opportunities in the Web3 ecosystem.
Your DappRadar account syncs with our mobile app, giving you soon the option to receive alerts live as they happen.
Track and trade on the go with DappRadar mobile app.
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