We all realize how Uniswap has successfully implemented the constant pool algorithm on Ethereum that CardX is trying to implement on Cardano. Although the team’s goal is to see the same end product and user experience as that of Uniswap, the implementation is quite different. The reason is that Cardano and Ethereum have different models.
The Difference between UTXO and Accounting Models
Unlike Ethereum’s accounting model, Cardano uses the eUTXO model, which is an extended implementation of the “unspent transaction output” model from Bitcoin’s network. On the other hand, the accounting model implemented by Uniswap on the Ethereum blockchain is based on the principle of keeping track of a global set of accounting balances, which is also known as a ledger. But this model is quite expensive as Ethereum makes every choice of globalization state for every dApp. The result is increased transaction costs, vulnerability to front-running, and additional development burden.
Despite the criticism of the UTXO model, especially with its porting protocols, Cardano chose to improve it to enable dApps to be independent in decision-making, which eventually makes the transaction cheaper and faster.
CardX, which aims to be the leading cross-chain DEX on Cardano, is focusing on taking advantage of this Cardano approach to make it easy for users to transact with a lower gas fee. Cardano has also won over CardX because it allows hundreds of transactions per block, which makes it faster. With the aim of becoming the biggest cross-chain DEX on the Cardano network, the CardX developers have focused on building a strong platform that would allow users of the DEX to transact faster and cheaper.