Cross-chain DEX combines contracts from AMM DEXs with order contracts from order book DEXs
According to his official Twitter account, ErgoDex, Cardano’s first eUTxO cross-chain DEX, has launched on its public testnet. ErgoDEX is a decentralized exchange that uses Cardano’s unique design and allows traders to perform atomic swaps or cross-chain swaps, allowing them to automatically trade contracts from two separate blockchains.
The cross-chain DEX combines contracts from AMM DEXs with order contracts from order book DEXs using the eUTXO ledger paradigm, allowing shared liquidity between exchanges built on the Ergo and Cardano blockchains.
With many new innovative products, the Cardano ecosystem is growing rapidly. Djed, a decentralized algorithmic stablecoin, recently became a public testnet.
Cardano founder and IOHK CEO, Charles Hoskinson, notes this as a major milestone for algorithmic stablecoins, saying “DJED is live on the testnet. This is a major milestone for all algorithmic stablecoins.”
Cardano’s eUTxO model
Hoskinson recently stated that Bitcoin’s UTXO model has not moved so far due to its limited programmability. The IOHK CEO noted that the Extended UTXO (EUTXO) accounting model used by Cardano seems “the next logical step.”
Bitcoin uses the UTXO model, while the second largest cryptocurrency Ethereum uses the account-based model, which represents assets as balances. The EUTXO design, according to Cardano developers, is preferable to Ethereum’s account-based paradigm. This is because two or more parties can control the same data owing to a “far larger” surface area for attack. The EUTXO model also features great parallelism and scalability.
Cardano founder believes model is what Ethereum developers are “fundamentally missing”, saying Satoshi Nakamoto, Bitcoin’s mysterious creator, abandoned the account-based model Ethereum currently uses due to its shortcomings .
In a recent tweet, Input-Output CEO Charles Hoskinson claims if staked coins were added to Cardano’s TVL, the blockchain’s TVL would be more than $19 billion. Presently, Cardano’s total value locked is near $200 million without the inclusion of staked governance assets, per DefiLlama data.
