The cryptocurrency market has seen massive growth in the last few years, with decentralized exchanges (DEXs) becoming increasingly popular among users for their superior security and decentralization. The recent meltdown of FTX, one of the leading crypto exchanges in the world, left investors scrambling to find a secure and advanced way to trade digital assets. With no single point of control or control in the hands of third parties, the Best decentralized exchanges of 2023 will allow users to trade freely and securely with no interference from external parties.

The Best Decentralized Exchanges (DEXs) in 2023 with Highest Users:

• Covo– Best DEX for trading cryptocurrencies with upto 50X leverage

• Uniswap– DEX with the Highest number of trading pairs

• Curve Finance– Best Exchange for swapping and trading stablecoins

• Pancake Swap– Best DEX on Binance Smart Chain (BSC)

• DYDX

• Kyber Swap

1) Covo Finance

Covo Finance is a 100% decentralized spot and perpetual swap exchange where users can trade Bitcoin, Ethereum, and other popular cryptocurrencies directly from their wallets with no custodial risk. What sets Covo apart from its competitors is its commitment to safeguarding users' funds while providing trading solutions with low-fee swaps and leveraged trading up to 50x.

Covo Finance has launched a COVO Token reward system, which acts as a governance utility token. Stakers are rewarded in the form of 30 percent of the platform's generated protocol fees in Matic tokens, esCOVO tokens, which can be staked or vested to earn COVO Tokens, and Multiplier Points, which boost yield without contributing to token inflation. Multiplier Points increase yield as if a user was staking the same COVO tokens, thus increasing long-term holders' returns and reward without contributing to token inflation.

With its 50X leverage features on trading BTC, ETH, etc., Covo Finance is slowly emerging as the number one choice for traders looking for the best decentralized exchanges in 2023.

Covo Finance could become the default decentralized hub of DeFi activities, making it easier for users to swap tokens, leverage trades, manage liquidity, and mint new tokens.

Covo Finance has also set up multiple pools for liquidity providers. Here, 70 percent of the platform's revenue, generated from leverage trading and trading fees, is distributed among the liquidity pools, which consist of 50% stablecoins like USDC and the rest in BTC, ETH, etc. In the pool, participants can mint COVOLP tokens with any currently underweight asset, thus counterparty-ing trades and mitigating risk to traders. Redeeming COVOLP tokens also comes with rewards, as users can choose to receive current overweight tokens in the pool with fee discounts.

To facilitate a low-friction experience, Covo has put users' security at the forefront, emphasizing that all funds are fully protected, so users don't have to worry about their crypto being exposed.

2) Uniswap

Since 2018, Uniswap has been the market's most widely used decentralized exchange platform. Powered by the Ethereum blockchain, Uniswap provides a platform for developers, traders, and liquidity providers to create, build and swap tokens. Compared to traditional centralized exchanges, Uniswap is completely decentralized, eliminating the risk of hacking and preventing users from having to give up control of their private keys. In addition, Uniswap also allows users to list tokens on their exchange for free.

Uniswap is also available as an open-source prototyping protocol, which makes it easier to create decentralized exchanges. Uniswap is driven by two main smart contracts: an "Exchange" contract and a "Factory" contract. It does not require an oracle problem as it is integrated with TWAP price oracles. This proof-of-stake oracle creates gas usage and price delivery efficiencies. The latest version, V3, is widely adopted as it has consumed 15.5 million transactions and 2.8 million gas. It is also the most popular Ethereum contract, ranking first amongst all Ethereum decentralized applications.

Overall, Uniswap is one of the best-decentralized exchanges platforms out there, with a wide range of features. One of the unique features of Uniswap V3 is the newly introduced Permit2, which allows users to swap any ERC20 or NFT-type token. This feature eliminates the smart contracts mismatch and thus removes the oracle problem. In addition, the Uniswap platform provides liquidity mining access, allowing users to earn rewards for providing liquidity.

3) DyDx

DyDx is a non-custodial decentralized exchange (DEX) protocol that allows users to trade various cryptocurrencies without giving up control of their private keys. With the help of its layer-2 solution, DyDx has become a well-known platform for fast and efficient trading with up to 20x leverage. The low trading fees, minimum trade size, and decentralized governance structure make it an attractive choice for users.

Due to its layer-2 solution, the DyDx protocol offers high transaction speed with minimal gas costs. It also allows users to trade with perpetual instruments in which two parties agree to exchange one financial asset for another at a specific time. On the DyDx exchange, users have access to BTC-USD, ETH-USD, LINK-USD, and more trading pairs. In addition, the platform also offers low trading fees and slippage.

In August 2020, the Curve protocol introduced a decentralized autonomous organization (DAO) to manage changes to the protocol. Through its native token CRV, holders can vote on protocol changes. Finally, on DyDx, users can stake their tokens in liquidity pools and get rewarded for adding liquidity to the platform.

4) Curve Finance

Curve Finance is a decentralized exchange for a trading cryptocurrency focused on stablecoins. The Curve platform leverages automated market maker (AMM) technology to maintain low fees and slippage costs to users. It offers a variety of stablecoins, including DAI, USDT, USDC, BUSD, and TUSD.

In addition, users have access to the Curve token, known as CRV. This token is used to incentivize liquidity providers on the platform and encourage users to participate in the protocol's governance. Curve also offers crypto pools which allow users to pool their assets together and trade them at current prices. These pools also allow variable fees, ranging from 0.04% to 0.4%.

Finally, Curve is integrated with the Dai Savings Rate (DSR), allowing users to earn interest on DAI deposited in the protocol. It is an attractive feature for users looking to earn passive income from their crypto investments.

5) Pancake Swap

Pancake Swap (CAKE) is the leading decentralized exchange operating on the Binance Smart Chain. On the PancakeSwap platform, users can swap tokens, stake CAKE in Syrup Pools, partake in Initial Farm Offerings (IFOs), engage in perpetual trading, and buy/sell NFTs via the NFT Marketplace. The platform is open-source and has been audited by top blockchain security firms, such as Certik and Slowmist.

PancakeSwap is powered by the native token CAKE, which rewards users who provide liquidity. The platform has gained considerable popularity due to the low transaction costs and high liquidity in the tradable assets. In terms of user experience, PancakeSwap is simple and easy to use and provides an intuitive UI.

6) Kyber Swap

KyberSwap is a decentralized exchange aggregator that supports multiple blockchains, including Ethereum, Binance Smart Chain (BSC), Polygon, Avalanche, Fantom, Cronos, Arbitrum, Velas, and Aurora. On KyberSwap, users can swap tokens and earn rewards from liquidity mining. KyberSwap provides an intuitive UI and a highly secure platform for users to trade tokens with just a few clicks.

KyberSwap is also integrated with the Dai Savings Rate (DSR), allowing users to earn interest on DAI deposited in the protocol. Users can also liquidate their tokens in the most capital-efficient manner via the liquidity pools, earning them fees. Finally, KyberSwap is powered by the native token KNC, which rewards KyberSwap users and incentivizes liquidity providers.

This list of the best decentralized exchanges DEXs in 2023 highlights the developments in the decentralized exchange market over the years and the promise of more secure and user-friendly alternatives to the more traditional centralized exchanges. Despite the emergence of DEXs, the centralized exchange market still takes up the lion's market share due to brand recognition, larger trade volumes, and user confidence. However, with the ever-growing number of DEXs, this could be set to change soon as DEXs continue to develop and improve their functionality and user experience.