The crypto space has been maturing with business possibilities through decentralization. Particularly, the no-middle-man concept proved its standpoint in decentralized crypto exchanges with visible business evolution. By the way, the decentralized exchange business records newer heights with its security and transparency. Considering this, many startups and entrepreneurs are willing to create Decentralized Exchanges for their businesses.
Also, the crypto landscape has guidelines for Decentralized Exchange (DEX) development. However, there is a visible shortage of disclosing technical facts and front-line business benefits. If you are a startup or an entrepreneur struggling in this way, getting professional guidance from ZAB Technologies will be a great deal. As a leading DEX Development Company, we create decentralized exchanges matching your enterprise goals. Our technical mastership helps you shine in the crypto space with our feature-loaded DEX platform.
But before getting started, you should know the features, methods, and potential benefits. You will get a thorough acquaintance to create your own DEX when completing this blog. Now let us…
Know the basics to create Decentralized Exchange
As you know, decentralized exchanges enable direct trading without the need for third-party influence. They are completely different from Centralized Exchanges (CEX) in terms of their function and characteristics. Owing to that, DEXs rely on self-executing protocol ‘Smart Contracts’ powered by blockchain technology. This gives the DEX users full control over their assets. Also, this simplified peer-to-peer exchange has distinct trading methodologies to complete various trade executions. Let us check with them one by one.
Automated Market Makers (AMM)
Automated Market Maker is an order-matching algorithm relying on liquidity pools for trade execution. The traditional way of trade execution causes a shortage in DEX liquidity. To resolve this, the AMM finds a trading pair from the liquidity pool. Due to that, these platform gets higher liquidity and lower slippage. Some of the popular DEXs using AMM are PancakeSwap, Uniswap, and SushiSwap.
Order Book
Order Book is similar to the trading methodologies available in the CEX. The order book lists the available orders and executes the matching order automatically. And, the order matching is done based on the market price of the assets. The transaction details are saved on the blockchain. Based on its operation, the order book is further classified as; an on-chain order book or off-chain order. Some of the decentralized exchanges using the order book are Polkadex and dYdX.
DEX Aggregators
The aggregators entirely differ from the order book and AMM as both work with a single DEX. However, DEX aggregators connect with various exchanges and execute a trade when they find a matching asset price. So there is no shortfall in trading pairs that results in lower slippage. Also, the DEX can operate with higher liquidity. Due to these reasons, DEX aggregators become the best match for large-scale traders. Some of the DEX platforms using aggregators are ParaSwap and 1inch.
These are the fundamental and essential facts you should know to create decentralized exchanges. As a business person, you might think about how DEX businesses fulfill your financial expectations. Regarding that, let me share…
How Does a Decentralized Exchange Make Money?
Similar to CEX, it also come with appealing revenue potentials. Though DEX offers lower transaction fees, the financial benefits are in decent ranges. The main source of income for DEX is trading fees. Every transaction incurs fees in decentralized exchanges. And, the fee structure and policies may vary from platform to platform. Also, the nature of them attracts traders to make use of additional services available on the DEX platform.
These services are well connected with the fundamental component tokens. Most of the DEX have native tokens that serve various operations in decentralized exchange. Due to this, it gets increased liquidity and also generates additional revenue. Some of the services offered by DEX platforms are: Staking, Lending, Yield farming, and liquidity providing. So as a startup, you need not worry about revenue when you create decentralized exchange.
Now let us move on to the…
Benefits of Creating Decentralized Exchange
As you know, creating decentralized exchanges offers financial perks to meet startup goals. Similarly, the platform users also have options to make passive income. Apart from these DEX development provides numerous benefits to investors. Let us check with them one by one.
Security and Trust
Basically, it does not have a third-person influence. The trade has been executed automatically with the help of smart contracts. Moreover, DEX does not require KYC verification, and all transactions are recorded in the blockchain. Hence there is no possibility of data breaches. So when you create decentralized exchange, their transparent operation will help you to retain users’ trust and confidence.
Global Market Access
These business is not limited to any region or country. DEX has users and traders around the globe. So it is easy to take your business to global reach and get potential contributions. Along with that, you can understand the mixed demands of global users which can help you expand your business.
Interoperability
With blockchain interoperability, decentralized exchanges can connect with multiple assets of different blockchains. So, the exchange platform gets numerous trading pairs that result in faster trade execution. In addition to that, you can connect with DeFi protocols and enable various decentralized applications (DApps).
Lower Operating Costs
Though this platform operates with multiple plugins and add-ons, the cost of operating DEX is greatly lower than CEX. The automated smart contract controls the transactions in them. So create decentralized exchanges to provide your users safer and faster trading at lower costs.
Community Engagement and Innovation
Most of the them have native tokens and active community participation. The governance token holders are enabled to participate in DEX platform development. As a result, your DEX can get innovative upgrades to satisfy the users’ demands. For example, the Uniswap foundation community is the backbone of Uniswap’s improvements and upgrades.
Thus these business benefits justify the significance of creating exchanges. When you connect with ZAB Technologies, we ensure technological refinement in DEX development with our top-class technical proficiency. As a startup, knowing our streamlined development methods could add clarity to your vision. So let us explore…
How to Create Decentralized Exchange?
The exchanges have simplified but more effective operations than centralized exchanges. It starts with wallet connection, order verification, execution and finally completing the transaction. So overall, you might think, it is easy to create decentralized exchange. But, an in-depth understanding only reveals the challenges associated with this. That includes smart contract programming, giving support to add-on modules, platform security and scalability, and legal and regulatory obligations.
At ZAB Technologies we offer you two methods to create decentralized exchange. They are,
Decentralized exchange Creation from scratch
Development from scratch involves a long development procedure. Every step should start from the ground level. Here, you can test and implement your business ideas. Also, you can reveal your creativity and give your platform a uniqueness. During the development process, you can work with our developers to audit the platform’s performance and security. This helps you optimize your DEX platform compatible with the latest technology. At every stage, you are guided on the technical capability of your DEX platform. Hence, you can be aware of your DEX platform’s strength which would be helpful in promoting your business.
The next one is,
Using White Label Decentralized Exchange Software
As said, development from scratch is a long process that requires more effort and time. But as a startup, if you want instant entry into the crypto space, our white label decentralized exchange software must be the ideal option. This software comes with pre-defined features and functionalities of the DEX platform. You can customize this software with your branding and business standards. Since this software is already tested for security and performance, you need not worry about those factors. Thus, the overall development takes very little time.
With these methods, we create decentralized exchange platforms as stable, robust, and flexible. However to face the market competition, your exchange should furnish unique features and services. If you don’t have enough idea about this, the following section could guide you.
Features of our Decentralized Exchange Development
Features are key players that ensure the business’s potential to reap maximum benefits. With prominent features, you can validate the enterprise’s goals and future growth. Here is the list of essential core and security features separately for your better understanding.
Core Features
- Effective User Panel
- Robust Admin Panel
- Multi-chain support
- Wallet connection
- Swapping mechanism
- Multi-lingual support
- Order matching engine
- Liquidity pools
- Staking
- Payment gateway integration
Security Features
- Efficient smart contract
- Advanced Decryption
- End-to-end encryption
- Anti-Distributed Denial Of Service
- Server-Side Request Forgery(SSRF) Protection
- SSL Integration
These are the must-have features to create decentralized exchange platform. Apart from these, you can integrate additional functional and security modules as per your needs. Our team will assist you in integrating them to yield better outcomes from the DEX platform. So that your business could claim great heights similar to top-performing Exchanges in the market. Here is the list of…
Top 7 Decentralized Exchange Platforms in the Crypto Industry
The following are the trending top DEX platforms ruling the crypto market. The list is compiled based on the market volume and revenue generation. But be sure that it may change as per market conditions.
- Uniswap
- Sushiswap
- Curve
- Pancakeswap
- OpenOcean
- Quickswap
- DODO
Each DEX platform in the list holds a certain percentage of the total DEX volume. This is due to their unique service offerings and transformation as per current trends.
At ZAB Technologies, we assist you in keeping the DEX platform updated with the latest technologies and trends. You can make use of our post-development support at your convenience and budget.
Amazing isn’t it? So what would be the overall DEX development cost? Let me share that too to get a closer view of it.
How Much Does it Cost to Create Decentralized Exchange?
The cost to create Decentralized exchange varies based on certain factors. Such as the requirements of developers, time-consuming, the methods you choose, services to incorporate, and more decide the cost. So here, we just disclose the approximate cost corresponding to our development methods.
The approximate cost to create decentralized exchange from scratch ranges between $80000 to $100000.
The approximate cost of DEX development using our white label exchange software ranges from $20,000 to $25,000.
The cost mentioned above varies as per your business requirements. We at ZAB Technologies strive to ensure promising business growth cost-effectively with our technical fluency. So, you will get back the amount invested to create decentralized exchange as profits. Therefore, choose any one of our DEX development methods to begin your business endeavors.
You can also read >> Cost to Build OTC Crypto Exchange
Finally, to conclude,
Why choose ZAB Technologies?
ZAB Technologies is a leading Decentralized Exchange creation service. We are also specialists in P2P, OTC, and centralized exchange development. Our service offerings are expanding with blockchain solutions like wallets, payment gateway, and token development. We also provide customized crypto exchange development with our fine-tuned clone scripts. Hence, ZAB Technologies would be a one-stop solution for all your blockchain and crypto-related development needs. Our flaw-free and technical-friendly platforms are ruling the crypto space in diverse categories. So leave your concerns away and get connected with us to create decentralized exchange. Let us together bring your dream business into the cryptocurrency world!
