Cardano’s Incoming DEXs & What It Means
As per our launch manual for QUIDDEX, you’re aware of what makes a DEX a vital part of any blockchain innovation. In case you missed it, this is how SundaeSwap, one of the numerous brands vying for the coveted “top Cardano DEX” spot, puts it:
“A decentralized exchange: an ownerless marketplace for efficient cryptocurrency transactions.” — SundaeSwap
So, besides smart contracts, dApps, and DeFi, the Alonso hard fork gifted the Cardano blockchain with DEX capabilities. In other words, a DEX on the Cardano blockchain will allow swaps between native tokens (such as QUID) and ADA. The question is, which DEX will be first and which will be number one?
The 5 Main Players (in no particular order)
ErgoDEX
Already running its beta on the Ergo blockchain, ErgoDEX is an interesting option. It’s advertising itself as a non-custodial, cross-chain DEX on Cardano and Ergo. The team is highly experienced, with some having worked on Cardano itself, and is the first blockchain to adopt the same eUTxO model for its smart contract language. They already have an auto market maker and didn’t launch their coin for pre-sale, which is kind of a powerhouse move.
SundaeSwap
SundaeSwap is tenacious when it comes to marketing and information. However, some speculation revolves around the experience of the developing team. Regardless, they have a huge following and are a bright spot in the crypto world… literally. Their site is almost as colorful as our galaxy. Finally, they have an exciting business model where some of the first capital coming through will be from users staking their ADA.
Cardax
Claiming to be the best DEX on Cardano, Cardax hopes to facilitate swaps requiring less upfront capital than your regular crypto trade. They’re doing so with an extended automated market maker. So… They’re a DEX who will do both — regular swaps and swaps with a lower liquidity level. Considering they’re not actually live on Cardano yet, we’ll have to see if their claim is real, but the founder of Cardax has been working on Cardano itself since 2017, and they have a knowledgeable team to back them.
RavenDex
Like ErgoDEX, RavenDEX strives to feature a cross-chain bridge allowing for ERC-20 conversion. They’ll also offer proof of stake (POS), a peer-to-pool, pool-to-peer lending process (P2P), allowing for more access to swaps, and an opportunity to earn interest in a secure, decentralized location. They hosted their token ($RAVE) pre-sale in October 2021 and have projected a Q1 2022 launch.
ADAX
Like its competitors, ADAX is looking to be a cross-chain, non-custodial DEX. ADAX also offers the same ERC-20 conversion as other DEXs and an AMM, which removes the orderbook process (used by most DEXs in Ethereum, for example), and allows you to set a price point for your swaps to automatically conduct at. Plus, their fees, which are 0.3% per swap, all go to the liquidity pool and not the platform itself.
What about QUIDDEX?
So, those are the front runners — but what about QUIDDEX? What makes QUIDDEX different is that QUID currently isn’t meant to be an investment token. It’s the utility token for the Space Tokens metaverse, which allows you to launch explorations and win rewards. So, QUIDDEX is a simple one-way swap between ADA and QUID. For us, Cardano’s DEXs mean that in the future, we’ll have the possibility to a) create our own DEX or b) have QUID gain value and become exchangeable through a secondary DEX. At the moment, we’re just happy seeing the rocket power that QUIDDEX provides to the Space Tokens community. 🚀
