One of These Will 100X
The Best Cardano DEX – As long as you act now, you are eligible to become a part of this project, which is going to explode in value.
The upcoming hard fork of Cardano will bring exciting new features, such as Defi and Smart contracts. Decentralized exchanges, also known as DEXs, are an important part of this. Cardano DEX is the winner, edging out the competition.
Firstly, let’s explain what decentralized exchanges are and why they are so valuable. Secondly, let’s take a look at the projects that each aim to dominate the market. You will find all the necessary details here. Having this information will help you to see who might win this race.
What Is A Decentralized Exchange?
Firstly, we need to establish what centralized exchanges are by discussing traditional exchanges. Binance, Coinbase, Kucoin, Kraken, Gemini are those typical exchanges you hear about.
It’s no secret that all the big companies make tons of money. Here’s what a traditional centralized exchange looks like. It will be non-technical, so don’t worry.
Your first step is to fund an exchange with money or cryptocurrency. Exchanges are now custodians of your assets. As if you had a gold bar, it would be similar. Your friend is storing it for you.
Safely tucked away. Gold bars are kept with them as a custodian. The exchanges do a similar thing with your crypto assets. You now have the decision to make. My guess is that Elon feels frisky today.
Elon may just go ahead and tweet something crazy that moves the entire crypto market with a tweet when Grimes is in a good mood.
As a true American, you think I’m going to purchase 69 000 Ethereum worth. Market orders for ether are placed by you.
Afterward, the exchange orders book matches you up with 69 thousand dollars worth of Ether sellers. Transactions settle. Coinbase charges a fee of 345 dollars. The net worth of Brian Armstrong increases, and you newly own ether. This is great news.
There is still room for improvement. Now let’s switch scenarios, and I am out. Similarly, I want to sell 69 000 dollars of ethereum.
Uniswap is a decentralized exchange that you choose this time. Ethereum’s most popular DEX facilitates trade.
Here’s how that Works;
An exchange such as Uniswap, Venus, or Pancakeswap lets you connect your wallet. The use of a hardware wallet such as a ledger or a surface such as a metamask.
It is never DEX’s responsibility to hold your funds. Your money does not belong to the DEX. Unlike a centralized exchange, it’s just a platform.
Your wallet stays full of money. Now that your wallet is connected, you place a sell order to exchange 60.000 dollars worth of ether for USDC worth 60.000 dollars.
Furthermore, DEX’s can only exchange digital currencies, not fiat currencies. In a DEX you can exchange stable coins like USDC for the closest thing to the dollar. One dollar is backed by one stablecoin.
In the DEX, you place your order and it is processed through an algorithm. This is then executed by a smart contract. A smart contract automatically executes trade after both parties have been matched, and the trade is conducted. Now you have swapped your funds with the buyer’s, and the trade is complete.
There’s still more to come. Custodians like Binance and Coinbase do not need to be trusted. As a result, you perform the same trade at a 90 percent discount.
Why DEXs SO Valuable?
How did decentralized exchanges gain such a huge value?
The reason for this is that each token facilitates trades, so you can invest in and buy them. They are facilitating a lot of trades if they are part of a large network, and they become the number one.
The decentralized exchange period Uniswap is the biggest. This is an Ethereum-based project. Uniswap is valued at nearly 18 billion dollars. There are about 11 million coins in circulation.
UniSwap has a market cap of about 4% of Ethereum’s. It is the second-largest decentralized exchange, the second-largest DEX. Binance’s smart chain contains it. There are 5.1 billion dollars in market capitalization for Pancakeswaps.
This is the 33rd largest cryptocurrency. A total of six percent of Binance’s tokens are owned by Pancakeswaps.
We can infer from these figures that the largest DEX on Cardano will have a market cap between 4% and 6% of Cardano’s, which equates to just under 3 to 5 billion dollars based on Cardano’s current price.
In other words, it will be in 30th place in terms of cryptocurrencies. The best part is yet to come. The majority of DEX hasn’t even released its tokens yet. If you happen to buy one of them, the price could shoot up 100x.
Having decided on the correct DEX, let’s take a look at which others are in contention. By doing so, you can decide who has the best chance of taking it all and really exploding in price.
Cardano’s most-publicized DEX is SundaeSwap. However, their marketing strategy seems to be working for them. That’s evident by their over 100000 followers on Twitter, which is not bad for a product that’s yet to launch.
Probably because of their publicity, SundaeSwap also has the most information out. Here are a few key points;
Their DEX was tested live to demonstrate some basic functionality of creating pools and performing simple trades. This test was run on a test net rather than the main network and it went smoothly. The branding on their website is also outstanding, with a very clean and minimalistic feel.
But it looks a bit too casual, since a lot of money is involved, and some people may think it doesn’t look serious enough. Despite that, the functionality remains the same.
In the early stages, SundaeSwap plans to start with an ISO model, which means a portion of their funding will come from users who stake their ads with the company for 25 days.
A rug-pull-proof funding model, SundaeSwap gives tokens to the owner of the ADA only for staking the ADA in SundaeSwap’s pool for about a month. The way it is done is interesting.
This massive undertaking appears to be too difficult for the team due to their inexperience and lack of experience Or at least fail to meet the deadline.
As a result of seeing the test network, I feel a little more confident. The future will reveal what turns out to be the case, however. While it’s hard to tell if they’re doing well from the outside, it wouldn’t be the first time a company had great marketing but failed to deliver on its promises.
Second, there is a concern about how they distribute the coins at the beginning. Their system is that 45% of tokens go to the founders, advisers, and future employees.
55% will go to investors, and 55% will go to the general public. The inside ownership of the company should be more visible, I think a little bit lower. The fact that it’s not a scam means that it’s not a scam either. DEX is certainly worth watching.
One of the most highly anticipated DEX events is ErgoDEX.It’s no surprise that ErgoDEX is the most popular tool on any technical forum. Ergo has been praised by Cardano’s creator, Charles Hoskinson, for their work many times.
You and Cardano can participate in the DEX on the Ergo blockchain since the two networks are cross-chain compatible.
This is a really interesting way to go about it, and ergo coin and Cardano could benefit from the close connections.
A market maker already exists that allows assets to be automatically traded without permission; you can also set a limit order.
In addition to having an experienced team, they have also worked on Cardano, which is wonderful to see. The tokens were not pre-sold.
SundaeSwap’s DEX is vastly different from SundaeSwap’s. Therefore, you can only get their token from their DEX. ErgoDEX is liked by many because of this feature.
Cardano smart contracts will go live on day one of the ErgoDEX, offering basic functionality.
It concerns me that this is not their only project. Besides the DEX, the Ergo team is involved in a wide range of activities.
They don’t focus exclusively on that. Furthermore, the project’s marketing is nothing like SundaeSwap. In my opinion, if you had the team functionality of ErgoDEX and the brand recognition and marketing of SundaeSwaps, you’d have a force that no one could ever stop.
This will make for an interesting dynamic to see who the winners are. Getting popular and getting useful are two different things in crypto, and maybe it is neither one of these things.
The ADAX market maker will be automated as well. This means that you can perform fun functions, such as setting the price of a purchase order.
A bridge made of erc20 was built. It’s a really cool idea. For those who are unfamiliar, the erc20 token is what is used for smart contracts in Ethereum.
This bridge version refers to transferring Erc20 tokens to Cardano, where they’re translated and usable for Cardano DEX transactions, which are significantly cheaper than Erc20 transactions.
In addition, users can continue to use erc20 for as long as they want. I am really excited about this.
According to ADAX, their internal reward scheme is also really interesting, allowing smaller liquidity pools to operate lesser-used token swaps more often.
In other words, there’s too much risk involved in running this pool, so it’s hard to trade on DEXes for certain small tokens.
ADX says it can solve that problem. A fee of 0.3 percent is expected on ADAX. ADAX does not keep any of it. Tokens were distributed as follows at the beginning. A liquidity fee of 10%, an individual fee of 10%, a team fee of 10%, a staking fee of 15%, a public fee of 25%, and a liquidity fee of 40%.
The amount of money going to the public is relatively low. There are very few actual developers in the project. Those being stored in treasuries or staked will most likely be locked up.
4. Occam. Fi
They will be offering a suite of financial products, including Occam Razer, instead of just offering swaps as most DEXs do. Cardano projects can raise funds and build projects on this kind of launchpad, The Octamer Razer. This project could help other Cardano projects progress further into their development phases, according to Charles Hoskinson.
CardDAX is another DEX expected to launch in Q3 2021. What sets them apart is a concept they developed called the extended automated market maker.
Market makers that work automatically are excellent for DEXs, they say. They aren’t always perfect, though. So with this new mechanism people would be able to pair tokens to swap without a large amount of capital upfront.
I realize this is quite technical, but basically, they will both allow swaps and plan to have low-barrier to entry methods for smaller liquidity pools. Liquidity pools are essential services that facilitate transactions by facilitating money. A fee of .05 percent of transaction costs is kept by CarDAX for themselves.
I‘m not a financial advisor and this article is simply for educational purposes. It should not be used to make any decisions regarding your finances. If you need investment advice, please contact a qualified financial advisor.
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