ADAX

An AMM based DEX, featuring an ERC20 converter, where all swap fees are split between the taker and the maker of the trade. Also featuring a CEX.

🚩 Many community members have raised concerns about ADAX's activities surrounding their promotion of other projects and general shady dealings. It is strongly recommended that you DYOR before stepping further 🚩

The ADAX DEX does not allow users to set their slippage or price impact, meaning that users need to very conscious of the size of the their order when compared to the size of the pool they're trading in as token price can increase exponentially and trades, as always on a DEX, are irriversible

ADAX works using an Automated Market Maker, AMM style of settlement, relying on liquidity pools to facilitate the swapping of tokens.

The swap fee on ADAX is 0.3% and this is shared between the maker and the taker of the trade: 0.175% for the taker and 0.125% for the maker. There are no platform fees, all fees go to the liquidity pools that facilitated a trade.

The ADAX DEX will include IOHK’s ERC20 converter that is designed to facilitate the easy conversion of ERC20 tokens from the Ethereum network over to the Cardano network as Cardano Native Tokens. This tool allows the conversion of the ERC20 tokens to be reversed through the burning of their counterparts on the Cardano blockchain.

The end goal of the ADAX project is not only to successful facilitate the exchange of tokens without a middleman or custodian taking part but also to create a benchmark of liquidity and token swapping that can be easily adopted and reused by future projects on Cardano.

Centralized Exchange (CEX)

Adax is currently operating a centralized exchange, CEX, that runs on the traditional order book style model. This has a connected launchpad for projects wanting to launch in the Cardano ecosystem.

Industry

DeFi

DEX

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CEX

Order Book

AMM

ERC-20 Converter

Swaps

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builtoncardano

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Glossary

Order Book

Order books are used to record and settle buy and sell orders placed by users in a traditional financial market. On decentralized exchanges, DEXs, operating an order book orders are placed into a smart contract at either a specific price or “market price” i.e. the current price. Market price orders are executed immediately against existing trades but orders placed at a specific price are locked into the smart contract and wait for orders to come along to fill them. This often means waiting for the price of the asset to move to the price they stipulated for their order. During this time the user’s assets are locked in the smart contract and are not available to the user.

Users are often given the ability to put “limits” on their orders, which is a time limit that automatically cancels the order if it is not fulfilled in the stated amount of time. This returns the locked assets to the user unchanged. Users are also given the ability to cancel these trade at any time, which, again, returns the assets to the user unchanged.

Launchpad

The term launchpad is often used in the same sentence as the terms incubator and accelerator, but the three have their own subtle differences. Many launchpads also operate an accelerator and/or an incubator. But what does a launchpad do?

A launchpad connects new projects to investors, and allows the project to raise funds by giving investors access to an exclusive, early, and often discounted, token sale. So the project gets the funds in needs to proceed with development and investors get tokens at a discounted rate before they’ve even hit the market. To offer security to their investors, and to uphold their name, launchpads will conduct through KYC into the projects applying to be on their launchpad.

Some launchpads will also offer many of the same services offered by incubators to the fledgling projects that conduct token sales through them.

Launchpads are often a sidearm of an exchange, of both the centralized or decentralized varieties, as they already have the capacity to sell tokens and can then offer a guaranteed place for the tokens to be listed once the project is ready to release them to the public.

DEX

Here is a Cardano DEX list for you to explore all the decentralized exchanges built on Cardano. There are multiple Cardano DEX projects for you to choose from, each with a different take on the DEX concept and the way of managing a decentralized exchange protocol.

Listed here are Cardano DEX projects that are based on both the automated market maker (AMM) and the traditional order book style of exchange. Both types of DEX on Cardano, like any other exchange, require a good amount of liquidity to operate effectively. This leads many to say that the best Cardano DEX is the one with the most liquidity. However, there are many other factors that the users of these DEXes would tell you to take into account before deciding which is the best Cardano DEX, and which one you should interact with (although a high amount of liquidity is a good indicator for users).

Interestingly, many Cardano exchanges, such as Sundaeswap, use the concept of “batchers” to collect, order, and execute transactions. This reliance on a small group of batchers to order and execute user transactions reduces the decentralized nature these exchanges as these entities could easily collude to front run transactions from particular wallets or to censor transactions from other wallets.

AMM

AMM stands for Automated Market Maker. This is an algorithm, often supplemented by oracles, that facilitates the pricing and exchange of assets between users. Assets are exchanged at market value through liquidity pools. These pools are created by Liquidity providers, LPs, who deposit assets to the exchange in pairs. This “asset pair” then allows users to swap one asset for the other through the liquidity pool. Fees are paid to the LPs who provided the liquidity. The more liquidity a pair has the less “slippage” a user experiences, meaning the less likely the user is to experience a price change in their trade.

Centralized Exchange (CEX)

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