DEX or Decentralized exchanges are considered a kind of cryptocurrency exchange that permits direct transactions of peer-to-peer cryptocurrency to be taken place online securely without the requirement for an intermediary. When transactions are made via decentralized exchanges, then the 3rd party entities that people commonly oversee the transfer and security of assets, like stockbrokers, banks, government institutions, online payment gateways, etc. get replaced for a distributed or blockchain ledger. A few common processes of operation comprise the utilization of order book relaying or smart contracts, though other variations too are possible and they come with varying degrees of decentralization.
As users are not required to shift their assets, Cardano DEX lessens the danger of getting stolen from the hacking of exchanges. A decentralized exchange of Cardanois also capable of preventing the manipulation of price or fake trading volume via wash trading. It emerges as more anonymous in comparison to exchanges that implement KYC or know your customer requirements in the best possible manner. You will find some signs that show that decentralized exchanges are going through lower trading volumes as well as market liquidity. The Ox project is a protocol to form decentralized exchanges having interchangeable liquidity that tries to solve this problem.
Effectiveness of smart DEX chain
Smart DEX Chain is considered a kind of blockchain that the SwapDEX exchange platform has introduced. It has turned into the underpinning of the ecosystem of SwapDEX. According to the name, this blockchain is considered a smart chain and it means it will be able to host smart contracts.
You will find many blockchains that permit a project to deploy contracts and they comprise BSC or Binance Smart Chain, Ethereum, Pokadot, Cardano, etc. Nonetheless, the Smart DEX chain familiarizes many game-changing, reliable, and convenient options to host smart contracts. This chain will turn into the last competitor against Ethereum.
Amongst the finest feature of this blockchaincomprises top speed, scalability, zero gas fees, the SDX coin, and alluring node rewards. You must go through a complete guide for learning more about this novice smart chain. It will enable you to see the method in which a crypto investor would benefit from its launching.
Features of DEX on Cardano
- Fair launching – When you opt for DEX on Cardano then you will not come across any pre-sale, no pre-mine. MIN tokens get fairly distributed with only 10 percent allocation to development funds.
- Yield farming – Liquidity providers get MIN tokens and these providers stake their pool tokens.
- Launchpool – You can support novice projects in the ecosystem of Cardano with IDO or Initial DEX offering and IFO or Initial Farm Offering.
- Transparency – When you look forward to having transparent transactions, then you must opt for DEX on Cardano. You can take part in the market and that too without leaving your wallet.
- Permissionless – A person can list tokens and for this, he does not need to take any permission. People can trade tokens even when they don’t possess KYC.
- Community First –When people choose Cardano DEX then all their trading fees go to a liquidity provider directly. A MIN token holder is capable of voting on protocol changes democratically.