Cardano Creates Its Own Decentralized Exchange (DEX), Named Cardax

Cardano develops Dex himself (Luchshie-Akcii)

JAKARTA – After the implementation of the Alonzo update some time ago, now Cardano (ADA) is rumored to be developing its own decentralized exchange or DEX such as Uniswap. The decentralized exchange, called Cardax, is aimed at strengthening the Cardano cryptocurrency ecosystem.

Because Cardano has been able to offer opportunities for other parties to create tokens in its network. However, this is not matched by DEX. DEX can bring multi-asset support to Cardano. Therefore, decentralized exchanges are urgently needed for token trading for their users.

According to Cointelegraph, Cardax is positioning itself as Cardano's native exchange and needs to provide liquidity for projects that create native assets. Cardax was founded by Ryan Morrison who is an active member of the Cardano community. Morrison's mission is to make Cardax the "Uniswap" of Cardano.

Later, Cardax users will be able to trade ADA cryptocurrency, exchanging Cardano for other coins. Cardax will also provide fixed prices automatically for liquidity providers in the EAMM protocol.

However, Cardax is not the same as a typical decentralized exchange. Usually DEX depends on the book order or AMM in determining the market price. The Cardax development team has conducted extensive research on how best to use both models to deliver new experiences for customers.

The main problem facing AMM today is the high entry fee. If the user does not have the ADA token then the user will only get a small portion which is illiquid. In fact, this is the main problem that UniSwap has been experiencing lately. Cardax is here to be a system that solves this problem.

Cardax is backed by a proven team of developing teams with technical experience in decentralized technologies. The team was chosen by the Cardano community to develop the first DEX and won the Cardano Project Catalyst which is a project that has the support of the Cardano community.

The Cardax team has raised $1.5 million from the community. Cardax developers also played an important role in implementing the Alonzo White and Alonzo Purple upgrades before Cardano launched smart contracts on its network.

Future plans Cardax will sell public tokens with the CDX code in their protocol this September. The presence of CDX allows token holders to participate in the governance of the Cardax protocol. The developer says Cardax will launch soon so “people can start trading Cardano native tokens”. However, the launch will occur after the Alonzo hard fork is released to the mainnet.

The Cardax development team openly admit that they aim to “maintain the platform and make sure it works well for our users.” They will also “start planning Cardax V2 with more DeFi features and even more users.”

The effort was an important step for the development of Cardano itself. Until this news was written, the price of ADA was traded at the level of Rp. 42,391. In the past week it has seen an increase of 13.4% according to CoinGecko data.