The growing popularity of Cardano is making it a blockchain of choice for many projects. One of the new projects to embrace Cardano is CardX, which is making a move into the decentralized exchange (DEX) market. CardX is taking advantage of Cardano’s proof of stake, which is more cost-effective and faster than Ethereum.
While Ethereum has been in the crypto space for a while now, Cardano is turning out to exploit its older competitor’s weaknesses. For example, while Uniswap uses a single liquidity pool, CardX wants to use a hybrid approach to liquidity pool design. A hybrid approach involves putting the custody of the funds in a decentralized and stored on the blockchain but the market-making and matching are sent through a central backend server. This approach solves the engineering problem that Uniswap Ethereum is facing today.
CardX believes in Cardano because it has some of the most exciting solutions to difficult problems facing blockchain today. They have also made trade-offs and prioritized things differently that create new opportunities in the crypto ecosystem. In the long term, Cardano is projected to grow its user base and become even more useful to the crypto community.
The new DEX, CardX, will allow users to conduct four types of transactions:
- Create a liquidity pool for users
- Swap tokens between themselves
- Deposit money, hence adding to the liquidity
- Withdraw liquidity
CardX DEX will be governed through voting by token holders, which is one of its main strengths as users of the platform will have the opportunity to decide the destiny of the platform.