"A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders. DEXs fulfill one of crypto's core possibilities: fostering financial transactions that aren't officiated by banks, brokers, or any other intermediary. Many popular DEXs, like Uniswap and Sushiwap, run on the Ethereum blockchain".[5]
DEX is growing dramatically and attracting millions of users. In just one year, the total value lock of the DEX has increased about six times from 5 billion USD (in November 2020) to greater than 30 billion USD (in November 2021) [1]. With such a strong development, the demand for tracking and analyzing information about DEX is extremely necessary. Transactions data on the blockchain are completely public and accessible to everyone. However, it is difficult to filter out relevant information fast enough to devise an effective trading strategy in time. DEXTools has been developed not only to solve these problems but also to do much more.
This article provides profound information about Dextools by answering some core questions: "What is DEXTools?", "Which is the purpose of creating it?", "What are the Features combined on it?". In addition, at the end of the writing, readers will find a basic tutorial on how to use DEXTools for analyzing DEX.
Introduction
What is DEXTools
"DEXtools is a price data analytics tool that helps traders to navigate decentralized networks more easily. One of the most important features of this platform is the ability to keep a record of the live price of tokens." [4]
DEXTools analyzes and evaluates crypto assets on decentralized exchanges (DEX) and provides a complete overview of the token's analytics to improve trading strategies. Beginning as a project monitoring IDEX, DEXTool quickly grew up and focused on supporting various DEXs. Today, it has become an essential hub for DeFi trading, analytics and an official CoinMarketCap partner.
Purposes of DEXTools
"DEXTools will do for DeFi what cryptographic blockchains did for value and information transmission."[3]
DEXTools is a tool for analyzing and evaluating crypto assets on decentralized exchanges (DEX). It provides a complete overview of the token's analytics to improve trading strategies.
DEXTools helps users to monitor spreads across pool pairs, predict the market by tracking whale wallets or warn to copy the most lucrative wallets.
The tool is also branching out to support centralized exchange (CEX) in an upcoming update. DeFi is growing very fast, but most transactions still happen on CEX.
Features
DEXTboard
DEXTboard gives users a quick overview of the features that DEXTools offers. As the image follows, users can find the hottest tokens exchanged in many chains such as Polygon, Ethereum, Binance Smart Chain, etc.
Live New Pairs
Live New Pairs or Pool Explorer helps users easily find the pools or tokens (with high growth potential but lower prices) and quickly recognize the complete pool worth of a token pair. Moreover, Since payment accounts, which are added and removed, can be tracked by DEXTools, users could know the gain/loss of the token. In addition, it is convenient for them to locate the information when all important links, such as the token's Etherscan or Uniswap page, are in one place.
As shown on the screen above, the Live New Pair feature provides the following features and information:
- Token filter: users can search by token name.
- Pair info: a list of pairs with a stable token and a new or unstable token.
- Listed Since: the time when the pair has been added to the list.
- Token Price USD: the new or unstable token's price.
- Initial Liquidity: the date when Liquidity has been added.
- Total Liquidity.
- Pool Amount: the amount of liquidity token in the pool before variation (the team added or reduced Liquidity).
- Pool Variation: the actual variation in the percentage of liquidity tokens.
- Pool Remaining: the actual Liquidity is remaining in the pool.
- Contract: functions in contract token. For example, mint, burn, etc.
- Actions: the activities which users did with the token.
Pair Explorer
Pair Explorer is a function helping users follow trading history and price fluctuation charts in real-time. In addition, users can retain tabs on their preferred tokens. Each token pair has also been generated a score by DEXTools, so investors are capable of avoiding apparent scams. Standard and premium users can also set up decentralized restricted orders or use algorithmic trading bots.
On the right screen, there are two tabs: swap and pool information. With swap tabs, users can check and see the exchange amount between two tokens. In pool info tabs, DEXTools provides some information about the pool (total Liquidity, daily volume, number of holders, etc.) and the token (DEXT score from 1 to 100 voted by the community, the higher score, the more preferred and reliable token).
The price chart of the token is shown on the middle page. Users can track the price fluctuation and also analyze with some tools on the left of the chart, like trading view. By clicking the little star next to the title, users can add this chart to their favorites.
Below the price chart is the transaction table of the token. Premium accounts will get the advanced features. For example, in the My Positions feature, users can mark a transaction by the amount they bought, the price in USD or ETH at that time. In addition, the user can also change the value of the transaction marked to compare the profit the next time they buy tokens.
Pair Explorer also provides some helpful features such as price alerts (alert when price token is in a specific amount), bot/smart contract (recognize the transactions made by a bot or smart contract), Follow Maker in Pair, etc.
Big Swaps
Users can track essential trading or significant swapping transaction, also acknowledged as whales' trading by Big Swaps of DEXTool. For instance, users can catch the dips in their purchases in time by monitoring massive revenue exchanges.
MultiSwap
With MultiSwap, users can interact with a number of pairs on a single display as below:
Notifications
Notifications can send price alerts for users' preferred tokens via Desktop, Mail, or Telegram. As currently no DEXs support stop-win or stop-loss orders, users' DeFi trading strategies are improved a lot by this tool which could be used easily with some simple steps.
Tracking/Monitoring
Retaining track of a user's place on all Altcoins is challenging, especially when tokens are moved all around pools by end users. With a constructed-in P&L monitoring instrument for users' destinations, this task is less complicated for them. One of the best ways to document trade decisions is by having a trade journal that helps end users hold themselves accountable and improve their trading strategy over time.
DEXT Tokenomics
The DEXT token is used to unlock all the DeFi App's features. For instance, users who hold DEXT tokens can have an unlimited amount of favorite pairs, create limited orders, and much more.
DEXT Share
Premium revenue sharing model is a special part of DEXT tokenomics. Basically, users can receive the remaining 90% share of the subscription revenue proportionate to their holdings when they are in a group of 100,000 DEXT holders. Locking up or staking DEXT tokens to earn the reward is not necessary, and the premium holders receive the DEXT tokens via airdrop every month. In addition, there is a huge passive income stream when premium holders do not need to pay any gas fees. The revenue is also being shared 100% with the Premium users due to team wallets not being included in the profit sharing.
DEXT Force Ventures
Premium holders have the opportunity to participate in a pre-sales group. These might be exclusive private sale allocations or seed rounds for early-stage projects that have been properly vetted by the DEXTForce team. To summarize quickly, the aim is for DEXTForce Ventures to create meaningful long-term partnerships that spur the next DeFi innovations.
References
[1] DeFi Pulse - The Decentralized Finance Leaderboard, defipulse.com, accessed 26 April 2022.
[2] DEXTools Integrates Trading Bots, dextools.medium.com, accessed 26 April 2022.
[3] DEXTools Manifesto Final, DEXTools docs, accessed 26 April 2022.
[4] What Is DEXtools? - Everything You Need To Know, Blockzeit, accessed 26 April 2022.
[5] What is a DEX?, coinbase.com, accessed 26 April 2022.
[6] What is DexTools DEXT Token Review, dexplain.com, accessed 26 April 2022