DOEX is set to become the first blockchain-based decentralized exchange (DEX) based on Cardano, and according to the team, it will be launched before the end of 2021.
How does a Decentralized Exchange (DEX) work?
A DEX is a blockchain-based application that facilitates all kinds of financial services normally executed by a centralized system through a series of smart contracts. A DEX doesn’t have a central authority system nor is it bound by governmental policies, hence the word “decentralized”.
Trustless parties can carry out transactions through these exchanges by relying exclusively on smart contracts, a computer program designed to execute and document events based on a set of predetermined rules agreed upon by transacting parties. A DEX not only decentralizes financial services entirely, but also guarantees that profits from trades are decentralized.
Unlike centralized exchanges, users who provide liquidity to DEXs to facilitate exchanges, swaps, etc. are rewarded.
It had always been the DOEX team’s vision to become the first DEX to operate on the advanced Cardano blockchain. DOEX aims to lay a solid foundation for business expansion and proliferation of the Cardano ecosystem and built-in projects through the integration of a fool-proof converter, which enables interoperability and convenient token swapping between Cardano and Ethereum blockchains.
In the long-term, DOEX is seeking to become the one-stop-shop for all decentralized finance needs on the Cardano blockchain, offering but not limited to asset and stake management, positioning itself as an all-around exchange for financial needs, and trusted by all, on the blockchain network.
Cardano Far Behind Top 3 Premier Decentralized Applications (DApps) in DEX Trading
Revered as a top blockchain network based on scalability, faster transaction throughput, and lower costs, Cardano, is miles behind the top three networks in terms of DEX trading activity, per a recent report from DAppRadar. Topping the list is the premier decentralized applications [DApp] platform, Ethereum, with TRON and EOS clinching the second and third spots, respectively.
Juxtaposed with these blockchain networks, Cardano may well have a superior and advanced technology, capable of scaling, and built by a team of visionaries, however, when it comes to DEX trading activity, it still has a lot of ground to cover.
According to DAppRadar, Ethereum continues to lead the way when it comes to DeFi, non-fungible tokens [NFTS], and DEXs. A dominant protocol, Ethereum accounts for 64% of the daily DEX wallet activity, a significant rise from its 2019 48% dominance. All of these data and statistics point to one fact — Ethereum has positioned itself as the go-to blockchain for everything DEX, albeit not entirely impossible, it would be a colossal challenge to overtake it.
With data from DeFi Pulse ; the leading DeFi analytics website signifying a sudden increase in this crypto trend with over $104.6 billion [at the time of writing] locked in numerous DeFi protocols, investors are expected to see profits flood into this billion-dollar market once the bull cycle winds up.
As the first DEX on Cardano, DOEX will usher a new era of decentralized exchanges on the network while acting as a catalyst for the growth of the network.
Originally published here
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
