As Cardano Smart Contracts are unraveling soon, more and more projects are appearing on the Cardano network. One of these projects is ADAX, a blockchain dApp that aims to be the premium DEX for the Cardano protocol.
In a recent press release, the company sounded extremely confident about their vision for their company’s future. An excerpt reads:
“The foundation of ADAX was built based on Cardano’s vision of a blockchain platform for pioneers, creators, and innovators to serve the Cardano community with a state-of-the-art decentralized exchange protocol.”
What is ADAX?
ADAX is a decentralized exchange built for the Cardano network. The company held a public IEO (Initial Exchange Offering) on ExMarkets which they say sold out in just a few days.
A neat feature within the ADAX DEX is the ERC20 token convertor. An ERC20 token is a native Ethereum token built of solidity. One can convert their Ethereum to Cardano “within a few clicks” and have access to the Cardano network easily without having to send their Ethereum to a centralized exchange. The team says in regards to their ERC20 bridge, “It’s a no brainer.” No doubt they are smart to realize that Ethereum isn’t going to disappear.
The bridge will be a neat feature in the ADAX DEX and will bring a large volume of Ethereum users to their interface. According to the website, the bridge feature will be release in Q1 of 2021 after Cardano has successfully launched their smart contracts. The bridge also comes with a two way convertor. Which means if users wish, they can turn their Cardano back to Ethereum.
All fees involved in the ADAX exchange go straight to liquidity pools and their is no network fee. Another interesting feature which the company discusses on their website is dealing with liquidity risk. Meaning, it is risky for investors to provide liquidity for low volume assets. They claim the risk is not worth the reward to hold and stake these low volume tokens for liquidity. They say:
“ADAX works on a different model that will address these concerns.”
On how they will do that there were no specifics.
When will ADAX be ready?
The ADAX team has chosen the Cardano network over Ethereum because of the slow transaction times and high fees on Ethereum. And as a DEX, ADAX highly values DeFi. In their whitepaper they say:
“In this way, decentralization is not just about user privacy but also about eliminating the risk of asset loss in an improbable event of exchange security being compromised.”
Many other DEXs made exponential gains within their first months. However, the market is totally different than it was even a couple of months ago. Will DEXs be a powerhouse for gains like they have in the past? It’s possible, but ADAX will not be able to perform well in the next few months if Cardano delays smart contracts. The adoption of the ADAX platform hinges on the success of Cardano. Currently ADAX is in phase one of three in their roadmap. All that is left is to stand by for Cardano smart contracts.
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Aaron is passionate about blockchain and has been an investor in cryptocurrencies for the past years. He enjoys engaging with other people in the cryptocurrency community online, particularly on Telegram, and learning from experts.