Cardano has been making significant improvements to its ecosystem since Q4, 2020 and throughout 2021. Its users, stake pool delegators, and the company behind its development Input-Output Global (IOG), under the leadership of Charles Hoskinson, have been particularly focused on expanding Cardano’s smart contract capabilities.
Thus, the successful implementation of three Hard Fork Combinator (HFC) events, dubbed “Allegra”, “Mary”, and “Alonzo” have opened an endless field of possibilities for Cardano. Cardax, a decentralized exchange and automated market maker (AMM), built for this network is one of the many projects seeking to leverage Cardano’s new capabilities as the ecosystem moves to fulfill a vision of decentralization, financial inclusion, and sustainability.
Supported by the Cardano community via the ecosystem’s crowdfunding program Project Catalyst, Cardax is one of the AMM on this network aiming to provide its users with a secure and reliable product. By exploiting security vulnerabilities, hackers stole millions from Ethereum users.
The AMM on this network will fully support Cardano’s native token capabilities by allowing its users to trade with these digital assets, to trade with different native tokens in a single transaction and become liquidity providers with the Extended Automated Market Maker (EAMM) protocol.
Cardax is a cost-effective, secure, efficient and more reliable product than SushiSwap and PancakeSwap. It will also offer unique functionality to its users. This will include the capacity to trade via Cardano’s Yoroi wallet, and liquidity provides the ability to earn fees collected on the platform.
DeFi Sector: Why Cardax is a One-of-A-Kind platform
This platform also features a hybrid model, which combines the advantages of both an AMM with an order book. It will allow trading. This dual model will enable the user to maximize slippage efficiency and minimize risk of loss permanent.
Cardax provides a solution to most of the problems in every AMM in the DeFi industry. Cardano-based projects can also access native markets for tokens, thereby increasing their adoption.
The DEX is being created in collaboration with Well-Typed, a top Haskell consultancy led by Duncan Coutts, and Mlabs, a Haskell, Rust, Blockchain & AI consultancy firm. Tweag is also involved in the partnership. This software innovation laboratory focuses on Haskell programming for financial platforms and applications.
Cardax plans to launch its native stablecoin in 2022 to make trading easier. The developers of the AMM plan to continue work on the second version, which will have more functionalities and features.
Cardano’s goal is to be a decentralized, self-governing ecosystem. Cardax will therefore be administered by the community. All CDX holders, the native token for this platform, will have a voice and say about the project’s future development.
Cardano and the developments it makes have both a large community and persistent critics. The latter claimed the blockchain has taken “too long” in deploying smart contracts, but loyal users have stayed due to its clear vision, roadmap, its security, and projects such as Cardax that could support the digital economy of the future.
