OccamX

An Automated Market Maker, AMM, DEX running on the Milkomeda sidechain.

The OccamX DEX uses an Automated Market Maker, AMM, protocol and exists on the Milkomeda sidechain, enabling users to swap between tokens that exist on Ethereum, Cardano, and other chains. Users can provide liquidity to the DEX and receive liquidity tokens, that represent their liquidity deposit, in return.

The OccamX DEX is branded as those it was produced by its parent company, Occam.fi, but it was actually built by a team incubated by the Occam.fi platform.

Users of the OccamX DEX can fine tune their slippage tolerance and set a transaction deadline for their transaction, meaning that they can limit their potential loses to a range they're comfortable with.

A Governance Token

Governance of the platform is decentralized and decisions are made by holders of the OCX token, of which the team gets 20% of the total supply. The OCX token can only be obtained by participating in the Occam.fi ecosystem, and this includes by staking to an ISPO, providing liquidity (on Binance Smart Chain), staking to Uniswap, or providing liquidity to the DEX. Note that most of these activities require you to hold and use the Occam.fi ecosystem's token, OCC.

Identifying Asset Sources

The OccamX DEX uses prefixes to identify which blockchain bridge a token comes from. For example, a DAI token from the Nomad bridge is displayed as nomadDAI, and from the Multichain bridge it is displayed as multiDAI. This method of displaying tokens is used OccamX but may not be used in another platform.

OccamX does not make the fee amounts for users of the DEX available.

Industry

DeFi

DEX

Tags

AMM

Yield Farming

Cross-chain

Milkomeda Ecosystem

Author

builtoncardano

Viewpoints

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Links

Project Website

Glossary

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.

Blockchain Bridge

Blockchain bridges allows you to port assets from one chain onto another, allowing those assets to represent their value and be used on a different chain. Most blockchains are not compatible with each and blockchain bridges bring much needed interoperability between chains by allowing for the psuedo-transfer of assets from one to the other.

Blockchain bridges work by first locking up the asset on its home chain, done by sending the asset to a designated address or smart contract. Once this lockup has been confirmed the protocol or company then mints a synthetic asset, representing the locked asset, on the target chain. The locking up process provides assurance that the asset on the target chain is always backed by the asset on the original chain.

These bridges can be both one-way and bidirectional. One-way bridges only allow you can to send assets in one direction e.g. from Ethereum to Cardano, and not from Cardano to Ethereum. Note that you can always unlock the locked up asset by returning synthetic asset to the bridge. One-way, in this sense means that you cannot lock up assets on the other chain, Cardano in our example, to be used as synthetic assets at the other end of the bridge. Bidirectional blockchain bridges allow you mint synthetic assets on both chains.

Blockchain bridges can be custodial, where the assets are stored by a trusted 3rd party, or non-custodial, where the assets are locked up in a smart contract. Non-custodial blockchain bridges, utilizing code and smart contracts to secure assets instead of a middleman, are championed as being more aligned with the ethos of decentralization.

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.

A Governance Token

Identifying Asset Sources

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