Hype Growing as DOEX Set to Become the First DEX on Cardano
Although being one of the top-performing blockchain networks, Cardano is yet to have a native Decentralized Exchange (DEX) like those found in other blockchain networks. Currently, there exists no exchange list for tokens of projects that are based on the Cardano blockchain. This will soon become a thing of the past, now that the team at DOEX is making some serious headway into the development of their project. DOEX is set to be the first Cardano Blockchain-based DEX, and according to its roadmap, the DOEX DEX is scheduled to launch by Q1 2022.
What is a DEX?
A Decentralized Exchange or DEX is a blockchain-based application that is accessible through a series of smart contracts and is designed to facilitate financial services that are traditionally carried by a central entity in a decentralized manner.
With a DEX, trustless parties can carry out financial transactions by relying only on the self-enforcing ability of smart contracts. Apart from decentralizing access to financial services, it also ensures that profits from the financial services are decentralized. Participants that provide liquidity to facilitate exchange, swap, and other types of operations on decentralized exchanges are rewarded with a small serving as a means of passive income generation for individuals.
On its website, DOEX clearly states its vision to be the first Cardano-based DEX:
“Our vision is to become the first Cardano-based DEX, ensuring interoperability across chains and allow for the seamless swap of tokens both on the Cardano blockchain and other ones like Ethereum via a fool-proof bridge or converter. This is part of our extended vision of laying a solid background for extended business and expansion opportunities. Our long-term objective is to be the one-stop-shop for DeFi services on the Cardano blockchain, including but not limited to, staking and asset management.”
However, despite the scalability and functionality of the Cardano blockchain, it is far behind the top three blockchains when it comes to DEX daily wallet activity. According to the most recent DappRadar data, the clear winner is Ethereum with 3447, TRON with 1665, and EOS with more than 750, as seen in the graphic below:
While Cardano may have superior technology, rampant demand, and visionary leadership, it has a lot of ground to make up to even come close to catching up. As with so much in crypto, we’ll have to wait and see.
On the Flipside:
- Ethereum continues to be a juggernaut regarding DeFi, NFTs, and DEXs.
- The most recent DappRadar data shows that DEX Ethereum is the dominant protocol, holding 64% of the total daily active unique wallet activity.
- Daily active unique wallets on Ethereum grew 48% from 2019 to 2020 — it will be a challenge for any competitor to overtake Ethereum — not impossible but not a certainty.
Why You Should Care:
Interest in DeFi continues to grow as DeFi Pulse shows that nearly $95.4 billion is locked on various DeFi protocols. Once this bull cycle winds down, expect to see profits flood into DeFi as a safe harbor to help “bear” the inevitable bear market. Given that expected growth, there’s likely to be plenty of room for an array of DEXs and blockchains.