This decentralized exchange has plans to become the Uniswap of the Cardano ecosystem

Cardano offers many opportunities to build custom tokens. The only thing missing is a native exchange list.

With no decentralized exchange in existence yet, one platform might have a solution for the native assets created after the Mary hard fork that occurred on March 1st, 2021.

Along with native tokens comes multi-asset support to Cardano, which allows users not only to create their own tokens but also to conduct transactions with them directly on Cardano's network. As each new project launches, they will require an exchange to trade their tokens.

Cardax is positioning itself as the native exchange Cardano needs to provide liquidity to projects that create native assets. Ryan Morrison, the founder & CEO of Cardax, has been an active member of the Cardano community since the beginning of the Cardano project in 2017, even speaking on several Cardano podcasts. With this background, he shares his mission with Cardax is “to be the Uniswap of the Cardano ecosystem.”

In practice, Cardax will include the ability to trade ADA for any Cardano Native Token, trade a Cardano Native Token for another within the same transaction and provide liquidity-sensitive automated pricing using the EAMM protocol.

Solving todays’ problems with AMM

There is one major difference between Cardax and other decentralized exchanges. That is, DEXs are typically dependent on order books or AMMs to provide market pricing. The team behind Cardax has conducted extensive research on how they can best leverage the two models to provide a positive customer experience when users trade.

One of the major problems every AMM faces today is high barriers to entry. An example can be illustrated for those building a Cardano native token. Creating a market to trade against ADA will require pairings of your token and ADA. However, without many ADA tokens, users will end up with a small illiquid pool. Unfortunately, this is a major problem on UniSwap today.

Cardax aims to create a system that addresses these issues by minimizing slippage, providing more price transparency and allowing anyone to become a market maker by starting a liquidity pool or being a part of an existing one.

A team ready for the future

The team behind Cardax has made headway assembling a team with technical experience on decentralized technology and was recently selected by the Cardano community as the first DEX to win Cardano’s Project Catalyst, a grant given by the Cardano community projects built on its network.

Additionally, within seven days of their presale on the Cardax community, the team raised 1.5 million dollars. Cardax developers continue to be a part of the testing phases of Cardano, including Alonzo white and Alonzo Purple, before the launch of smart contracts on the network.

Looking ahead, Cardax is planning to make a public sale of their protocol's token CDX in September. The CDX token allows holders to participate in the protocol's governance.

In the next 12 months, Cardax plans to launch so that “people can start trading Cardano native tokens.” The launch date will occur after the Alonzo hard fork and when Cardano decides to release the Alonzo hard fork to the mainnet. This event is expected to occur on September 12th 2021.

The team behind Cardax also shares, their goal is to “maintain the platform and make sure it works well for our users” and afterwards, “to start planning for Cardax V2 with more DeFi features and even more users.”