Main navigation

Cardano's First eUTxO Cross-Chain DEX Goes Live on Public Testnet: Details

Sat, 05/07/2022 - 18:00
article image
Tomiwabold Olajide
Cross-chain DEX combines contracts from AMM DEXs with order contracts from order book DEXs
Cardano's First eUTxO Cross-Chain DEX Goes Live on Public Testnet: Details
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

According to its official Twitter handle, 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 do atomic swaps or cross-chain trading, enabling them to automatically exchange 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 innovative new products, the Cardano ecosystem is rapidly expanding. Djed, a decentralized algorithmic stablecoin, became live in public testnet recently.

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 because of its limited programmability. The IOHK CEO noted that the Extended UTXO (EUTXO) accounting model that Cardano uses seems "the logical next 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.

The Cardano founder believes that the model is what Ethereum developers are "fundamentally missing," saying that Satoshi Nakamoto, the mysterious Bitcoin creator, dropped the account-based model Ethereum currently uses because of its deficiencies.

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.

article image
About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.