As Hard Fork Combinator (HFC) approaches “Alonzo”, more DeFi projects are emerging for Cardano. A few days ago, Tim Harrison, Director of Marketing and Communications at Input-Output Global (IOG), said there is “tremendous” interest from developers in the platform and its smart contract capabilities.
In this sense, a team of developers led by Ryan Morrison of Quant is launching Digital Cardax. A project set up as Cardano’s first decentralized power plant. According to an official post, the project is seeking $ 50,000 to fund the development of Cardax. The proposal was made through Cardano’s Project Catalyst Fund 4.
Morrison is a pool operator in this network with a background in marketing. His team is made up of “crypto enthusiasts” with experience working on projects such as Celsius, Open Ocean and Bitcoin EU, according to the official post. They plan to build a DEX with the following characteristics:
Cardax is a decentralized exchange powered by the Extended Automated Market Maker (EAMM) protocol. It aims to provide liquidity to projects that issue native tokens on Cardano. (…) Giving Cardano native tokens and multi-asset support has led to an increasing need to develop a native exchange.
Cardano’s first DEX roadmap and features
The team behind Cardax is trying to address some of the “challenges and gaps” for Cardano and its ecosystem. In this way, they also seek to increase the platform’s business use cases and increase adoption in the DeFi industry.
The project will develop 7 main features: support for each Cardano native token introduced at the previous HFC events, Allegra and Mary; empower liquidity providers to receive fees collected on the DEX; use the EAMM protocol for liquidity sensitive automated pricing; the ability to trade with ADA and other native tokens through the Yoroi wallet; single transaction, and single transaction transfers.
The project has 6 development phases. These will consist of creating the user interface, user experience, system logic and “must-have features”, to security, backend, protocol and a final phase for testing and development. The teams added:
The requested budget in Fund 4 ($ 50,000) covers the implementation costs of phase 1 of the project. As outlined above, this phase will focus on Cardax’s system architecture and UI / UX.
Unlike centralized exchanges and future competition in the DeFi industry, Cardax will try to leverage an order book model with an automated market maker (AMM). Users will be able to take advantage of the dual model. The DEX allows them to be market makers with minimal slippage and the risk of temporary loss. Cardax team said:
With the increasing adoption of Cardano and ongoing initiatives to support DeFi, a Cardano-based DEX will serve as an essential and powerful trading platform in the ecosystem.
ADA is trading at USD 1.21 with sideways movement on the hourly chart and a downtrend on higher timeframes due to general sentiment in the crypto market.