In this day and age, all Decentralized Exchanges (DEXes) suffer from the same lack of usability, driven by gas costs and vulnerability of protocols. This issue limits users that want to partake in trading and providing liquidity to those with financial or technical ability. In order to ensure a truly open marketplace which anyone can participate in – the ultimate Decentralized Finance (DeFi) promise – a solution must be created to lower financial barriers of entry and to reduce inefficiencies that are detrimental to traders.
eckoDEX achieves exactly this by building the first DEX built upon Kadena, the first truly scalable Proof-of-Work (PoW) layer-1 blockchain network and utilizing a similar Automated Market Maker (AMM) model as Uniswap. Through the power of Kadena’s braided chain framework, the possibility of Miner Extracted Value (MEV), frontrunning and gas auctions is all greatly reduced, ensuring faster and cheaper transactions in the process, while being settled by the globalized security that only PoW can provide. Kadena also offers the paradigm-changing ability to offload gas payments to a third party via gas stations. This enables eckoDEX to deliver a gas-free liquidity pooling and trading experience while also allowing for novel approaches to liquidity provisioning and slippage controls.
Besides the technical advantages brought to DeFi, eckoDEX introduces its utility token - KDX - to establish true democracy and community ownership of eckoDEX’s ecosystem and to implement the first financially sustainable Liquidity Mining programme. This allows the community to steer the development of the platform, achieving a collective vision, while also incentivizing participation in certain pairs, and therefore improving the overall users swapping experience.
Altogether, these technologies create a DEX and a DeFi tool suite that is positioned to not only support the Kadena ecosystem, but to create DeFi in the way it was supposed to be: open to all, community-owned, simple to use and cheap to participate in.