You can compare Stacks to any layer 2 chain, but it’s built on Bitcoin. In contrast to Bitcoin, it can handle smart contracts and Dapps. And, Stacks brings Decentralized Finance and Non-Fungible Token (NFTs) to Bitcoin. Reports by DeFillama, its TVL is still low at $27.69 Million. On the other hand, each journey starts with the 1st step.
And, let’s take a look at the best-decentralized exchanges on Stacks.
ALEX is a decentralized exchange that dominates the Bitcoin (BTC) Decentralized Finance space with 93.9 percent of the entire TVL. It stands for “Automated Liquidity Exchange”. From the total of $28 Million TVL, ALEX accounts for $25.9 Million. As of now, DeFiLlama only lists 5 Decentralized Finance projects for Stacks. Measured by TVL, Stacks ranks at #41. And, let’s see this as a good start. And, there is still numerous potential for growth.
Before you can run ALEX, you must to install a Stacks-compatible wallet. If you’re on Chrome, you can install:
ALEX offers, for example, the next Decentralized Finance features:
- An IDO (Initial DEX Offering) launchpad.
- A DEX.
- Yield farming.
- Borrowing and lending.
Since September 2022, ALEX likewise offers an orderbook. This will launch come 8th August 2023 on a testnet. You can sign up for a ‘Whitelist’, so you can help to test it. To access this, you must the Hiro Wallet. Keep in mind that Hiro Wallet has a 24-word seed phrase. Furthermore, it offers a bridge to BSC and Ethereum (ETH) (ERC20).
The platform launched in January 2022 with an AMM. At the helm of ALEX stands Chiente Hsu, She’s not only the founder but as of now likewise the CEO. Her team consists of experienced Wall Street veterans. And, Stacks and ALEX have their own crypto tokens, STX and ALEX respectively. The image below shows the ALEX bridge.
Source: ALEX Labs
StackSwap is the other DEX listed on DeFiLlama and is the 1st DEX on Stacks. It’s one of the 5 protocols of Decentralized Finance listed. If you want to use this app, keep in mind that you must a Bitcoin-compatible wallet. I listed these over, in the ALEX section.
And once of writing this post, the TVL for StackSwap is only $217,774. Reports by DeFiLlama, it occupies rank #4 on Stacks. To put it another way, it looks like it lost its first-mover advantage. It’s likewise worthwhile to check liquidity on this protocol before you start using it. Still, StackSwap offers a variety of Decentralized Finance features. For example:
- Swap. For example, STX, wBTC, New York City Coin, and Miami Coin.
- Minting and trading NFTs.
- Borrow algorithmic stablecoins.
We looked at the present two decentralized exchanges on the Stacks protocol. These are ALEX and StackSwap. Nonetheless, ALEX is the dominant Decentralized Finance protocol on Stacks. It holds a 93.9 percent dominance.
The current STX price is $0.60 and its market capitalization is $831 Million. The max and total supply are 1.818 Billion crypto tokens. As of now, 1.381 Billion crypto tokens are already circulating. Over the a year ago, STX is 4.3 percent up.
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