Cardano investors are patiently waiting for a decentralized exchange (DEX) to drive more users to the network. Which ones are the top contenders that you should be paying attention to? Covered: What Is A DEX? Three Promising DEXs Just a couple of weeks after SundaeSwap announced that the decentralized exchange had processed its first ever […] The post Three Upcoming DEXs On Cardano To Keep On Your Radar appeared first on CryptosRus.

Three Upcoming DEXs On Cardano To Keep On Your Radar

Cardano investors are patiently waiting for a decentralized exchange (DEX) to drive more users to the network. Which ones are the top contenders that you should be paying attention to?

Covered:

  • What Is A DEX?
  • Three Promising DEXs

Just a couple of weeks after SundaeSwap announced that the decentralized exchange had processed its first ever transaction on the Cardano (ADA) blockchain, the hype has since died out, and ADA is ranging in anticipation for user activity to pick up steam.

Below are three potential Cardano DEXs that could drive new users to the network. But first, a little bit about decentralized exchanges and why they matter so much for smart contract protocols like Cardano. 

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What Is A DEX?

If you’re unfamiliar with decentralized exchanges, they are essentially an application accessible through smart contracts running on a blockchain, which enable financial services, such as trading tokens or lending and borrowing, traditionally facilitated by a centralized authority.

However, rather than being facilitated by a central entity, trustless parties can participate in a financial market, relying on the behavior of the smart contracts to secure the transactions.

In addition to decentralizing traditional financial services, a DEX also decentralizes profits from those services. Participants who provide the liquidity to support the market collect a small fee that is usually reserved for large institutions or centralized players.

SundaeSwap

Starting with the most well-known, SundaeSwap is the first Cardano-native DEX on the list. With the largest social media presence amongst all competitors and its first processed transaction under the exchange’s belt, SundaeSwap could certainly be positioned to capture the largest portion of the market. 

The DEX is planning to offer a broad range of decentralized financial (DeFi) products, like swaps, order book trading, and “more toppings” – which could refer to additional features like staking pools. 

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In an interview with SundaeSwap’s lead developer Pi Lanningham, he says that the team has finished the first phase of its design audit, but they are still optimizing SundaeSwap’s code to increase the upper limit of transactions.

While he doesn’t give a clear launch date, he mentions that the team is actively looking for digital wallets to partner with that can properly integrate with the DEX.

ErgoDEX

Ergo is a typical automated-market-maker protocol (AMM) that has close ties to the Cardano team and founder Charles Hoskinson. If you’re unfamiliar with an AMM, it works like a traditional DEX, however, rather than transacting with individual token holders, users can swap tokens held within an existing pool that is funded by the DEX network.

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The DEX is planning to integrate an order book feature to its platform, allowing users to interact and trade on the exchange in a familiar fashion to its centralized alternatives.

Hoskinson has highlighted Ergo multiple times in the past on various live streams, suggesting that the teams may have tighter connections than Ergo’s competition.

OccamFi

The last DEX to pay attention to is OccamFi. The team at OccamFi also has official links to the Cardano team from both the development and investment perspective, and have even worked with EMURGO, the makers of ErgoDEX, to bring similar DeFi features to Occam. The platform wants to extend beyond just a decentralized exchange to become a DeFi ecosystem to onboard new developments teams to build decentralized applications (dApps) on their platform. 

One of the platform’s flagship products, Occam Razer, is a Cardano-based launchpad that will enable investors to invest in initial direct offerings (IDOs) and other new token launches.

Unlike other Cardano DEXs, OccamFi’s native token is already available to trade on the Ehtereum-native DEX Uniswap. Currently, the token is holding a modest market cap of just $84 million, trading at $5.25.

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These are by no means the only decentralized exchanges coming to Cardano, just a few to keep an eye on. 

For more on the ADA ecosystem, check out Cardano.org.

The post Three Upcoming DEXs On Cardano To Keep On Your Radar appeared first on CryptosRus.