What Is Doex?
The DOEX decentralized exchange (DEX) is the first Cardano Blockchain-based DEX to give liquidity to native assets on the DOEX network, which is a first for the cryptocurrency industry.
Cardano, although being one of the most successful blockchain networks, did not have a native Decentralized Exchange, as is the case with other blockchain networks such as Ethereum. As a result, there is currently no exchange list for tokens issued by projects that are built on the Cardano Blockchain. The DOEX decentralized exchange (DEX) is the first Cardano Blockchain-based DEX to give liquidity to native assets on the DOEX network, which is a first for the cryptocurrency industry. The Mary Hard Fork upgrade to the Cardano Blockchain, which was completed on the 1st of March and enables anybody to establish native coin assets on the blockchain, is a significant step forward. Because of this, Cardano now has multi-asset compatibility, and users may create custom tokens and conduct transactions directly on the Cardano blockchain, allowing them to be more flexible.
Since its fork, Cardano blockchain has expanded its tokenization possibilities and is now capable of processing transactions involving many asset kinds at the same time. The Mary Hard Fork has made this possible. Having native support for tokens is a significant advantage for developers since it relieves them of the burden of creating new assets or transactions via the use of smart contracts. By doing so, the accounting ledger can trace the transfer of asset ownership, eliminating the need for complexity, mistakes, and security risks from the equation in a time- and cost-effective way. Further, native tokens on the Cardano Blockchain do not require the additional effort associated with the creation of smart contracts in order to transfer their value, and users can carry out transactions and burn their tokens without incurring smart contract transaction fees or adding event-handling logic to keep track of their transactions on the blockchain.
This version allows for the production of both fungible and non-fungible tokens, which in turn allows users to construct unique payment assets, stable coins tied to fiat currencies, assets to represent intellectual property (IP), and other types of assets using blockchain technology. These assets may then be utilized to carry out transactions in an efficient manner.
The creation of assets on the Cardano Blockchain may be accomplished in one of three methods. They are as follows:
- Cardano Command Line interface (CLI)
- Token Builder graphical user interface (GUI)
- Daedalus wallet
Each of the five stages that make up the lifespan of native assets is as follows:
It is necessary to have technical knowledge of how to set up and operate a Cardano node as well as knowledge of how to handle transactions and manage wallet addresses and technical data in order to make use of the Cardano Command Line Interface (CLI). The GUI token builder, on its own, streamlines the process of creating and deploying tokens. It also makes it easier to create tokens for Decentralized Applications (DApps), as well as other specialized types of tokens such as NFTs and fiat-pegged stablecoins. User’s current assets may be used to make payments, purchases, and exchanges via the usage of Daedalus and Yoroi wallets respectively.
DApps may be developed on Cardano by taking use of the features introduced by Goguen era projects such as the Mary hard fork, Plutus, and Marlowe – all of which are substantial advancements in the capabilities of Cardano – and incorporating them into the Cardano blockchain. The Plutus smart contract language and execution platform, which comprises of On-chain (on the Cardano Blockchain) and Off-chain (on the user’s computer) branches and makes use of the Haskell programming language, is more formally described as follows: It enables the usage of the Alonzo upgrade – which is shown in the last phase of Goguen on the Cardano roadmap – to be implemented. Goguen will also bring enhancements to its core service, the most significant of which will be multi-asset ledgers.
The Alonzo upgrade, sometimes known as a hardfork, introduces exciting new capabilities to the Cardano Blockchain, including the ability to execute smart contracts on the network with the inclusion of Plutus scripts. Because Alonzo makes it easier to construct Decentralized Finance (DeFi)-focused DApps and smart contracts, it opens up a plethora of potential for organizations and developers. Alonzo brings a systematic approach that is based on verification and formal procedures to the table in order to enhance the basic multi-signature scripting language that is utilized in Cardano Shelley to include more features. The Multisig smart contract language is a revised and expanded attempt on the Plutus smart contract language that provides more efficient and reliable scripting choices.
Through the use of an enhanced model of unspent transaction output, Alonzo makes it possible to write more powerful scripts (eUTXO). IOHK, the parent infrastructure research and engineering corporation managing Cardano, has developed a hard fork combiner technology that makes this feasible. This results in efficient smart contracts that allow for smooth and efficient automated asset trading applications as well as big cash moves to be implemented. Additionally, developers have access to tools that allow them to test, verify, and adapt Cardano transactional functionality. To enable the deployment and operation of Plutus Core code while connecting with wallets and the distributed ledger, the API library will be developed in the next months.
The Daedalus update is the predecessor to the Alonzo update, and it lets users to utilize their wallet to receive both ADA and a variety of other assets on the Cardano network via the usage of their wallet. The introduction of Daedelus heralds the beginning of the transition away from platform-based stake pools and toward community-led stake pool operators.
Why Doex Chose Cardano
Cardano, like other blockchain technologies, offers a number of benefits. It is scalable, rapid, and offers cheap transaction fees that may be paid using the same token that was used to initiate the transaction. We believe that the Cardano Blockchain has the ability to attract developers and new venture capitalists, which will help to rocket its adoption in the near future, despite the fact that blockchains such as Ethereum have a greater degree of acceptance than the Cardano Blockchain.
Aside from that, Cardano is distinguished by its layered blockchain design, which is comprised of two primary components: the Cardano Settlement Layer (CSL) and the Cardano Computational Layer (CCL), which distinguishes it from other cryptocurrencies on the market.
The majority of other blockchain systems now in use only have a single layer, which creates scalability concerns and often results in network congestion, which slows down transactions and results in increased network fees for users. Ethereum can handle around 15 transactions per second, according to the blockchain (TPS). This modest level of TPS causes the network to become sluggish and crowded in a very short period of time. However, there are no scalability difficulties with Cardano, as opposed to other cryptocurrencies. Simulations have shown that each “Hydra head” of the Cardano network is capable of processing around 1,000 transactions per second at the moment. This may be paired with 1,000 stacking pools, each of which can handle 1,000 TPS of processing power apiece. As a result, Cardano has the potential to process up to 1 million transactions per second, making it very fast at completing transactions while charging a very low network cost.
The Cardano and Ethereum networks have a lot in common with one another. This includes the simplicity with which smart contracts may be created and the development of decentralized apps (DApps). They are, nevertheless, fundamentally different in terms of their philosophical conceptions of creation and their design ideas.
ADA-ERC20 TOKEN BRIDGE
As previously stated, the Cardano network supports ADA, its native currency, as well as the tokens of other successful projects built on its network. An ERC20 converter will enable improved interoperability across chains, paving the way for expanded business and growth options.
The converter allows issuing companies, projects, and individuals to migrate ERC20 tokens to Cardano with only a few clicks. The converted token will have the same value and functionality as the original ERC20 token. Users may also migrate their tokens back to the source network by burning them on Cardano. The ERC20 converter is bi-directional.
Also, Metamask (a Chrome browser plugin) may be used to verify an account with more alternatives to come. Users must enter their Daedalus testnet address to simply move their tokens to Cardano and monitor transactions and balances.
When a user logs into his ERC20 converter account, SingularityNET tokens will be shown and ready to migrate.To convert a token, the user just selects it, types the amount and adds a Cardano address to migrate it. So, after migrating the Daedalus wallet address, it may be used for any payment or transaction desired, with both Etherscan and the Cardano Explorer showing the activity.
After quality assurance testing, the ERC20 converter will be made public. It is currently being tested to provide a great user experience and to resolve any bugs or vulnerabilities. The dedicated testnet env will soon provide relevant documentation and instructions on how to test the converter capabilities.
AUTOMATED MARKET MAKER (AMM)
Both conventional and decentralized financial narratives are being changed by AMM exchange structures. Bypassing trading platforms and other middlemen, it is the protocol that powers decentralized exchanges (DEXs).
Before AMM, exchanges employed a traditional order book to match trade orders. As such, they merely operate as matchmakers, connecting buyers and sellers and collecting a percentage. Unfortunately, they had liquidity concerns due to variables such as order placement delay, block confirmation time, and slippage.
As a consequence, the price of an item at the time of trading might change dramatically. This happens a lot in volatile markets like the crypto. To decrease price slippages, exchanges must guarantee that transactions are performed promptly.
How do AMMs Work?
Automated market markers replace traditional matching systems and order books with blockchain-based smart contracts. These smart contracts determine the price of a cryptocurrency asset and provide liquidity. Traders trade against the smart contract’s liquidity, not the counterparties. Using AMMs also eliminates the need to open an exchange account, go through KYC processes, or entrust cash to third parties.
In order to perform a transaction, a user just has to link their browser wallet.
The smart contract will then deliver the matching bitcoin assets to the user’s wallet. DOEX also employs this mechanism to perform transactions. The platform overcomes the performance limitations of previous AMMs by exploiting the interoperable, rapid, and secure liquidity provisioning characteristics of Cardano smart contracts. Observations:
• Trading pairs exist as individual liquidity pools (LP) in the AMMs;
•Instead of using dedicated market makers, anyone can provide liquidity to these pools by
depositing both assets represented in the pool
Existing protocols utilize an equation as simple as X x Y = K, where X and Y indicate the value assets A and B, and K is a constant.
Essentially, the liquidity pools on AMMs always keep the price of Asset A multiplied by the price of Asset B equal.
Profits from AMM Liquidity
As stated before, AMMs employ liquidity to trade. Whenever liquidity is placed into a pool, liquidity tokens are minted to the provider’s address in proportion to their contribution. These coins reflect a liquidity provider’s pool contribution. Whenever a transaction happens, the fee is split evenly among all liquidity providers in the pool at the time.
Simply said, when a user contributes an asset to the pool, it becomes fungible. The token put in the liquidity pool has a derivative value. The provider owns the reward paid on the sum delivered. A smart contract’s assigned derivative is therefore a growing percentage ownership claim on a piece of the liquidity pool. Liquidity providers may then sell, transfer, or spend their liquidity tokens as they see appropriate. Withdrawal of your token will result in an LP token and a part of the transaction fee.
A Decentralized Exchange (DEX) is a blockchain-based platform that allows users to access financial services that are typically provided by a central body.
With DEX, anonymous parties may trade money using smart contracts’ self-enforcing capabilities. It not only decentralizes access to financial services but also assures decentralization of profit.
Participants that supply liquidity to assist exchange, swap, and other sorts of activities on decentralized exchanges are compensated a nominal fee, allowing them to generate passive income. Something only major financial firms can do.
There are several DEXs on various blockchains. On the Ethereum Blockchain, there is UniSwap and Curve. DOEX is being designed for Cardano Blockchain to allow asset swapping.
Tokenomics of DOEX
DOEX will issue 140 000 000 DOEX, native tokens on Cardano blockchain
- Supports any Cardano native asset
- Trade ADA for any Native Token on the Cardano Blockchain
- Participate in liquidity pools to earn fees on ADA – Cardano Native Assets pairs
- Trade any Cardano Native Token for another in a single transaction
- Automated pricing that is liquidity sensitive using AMM protocol
- Trade and transfer to a different wallet address in a single transaction
- Purchase ADA or any other Cardano Native Token from Yoroi wallet
Utility of the DOEX Token
The DOEX native token is a utility token with several use cases that will drive adoption and demand. Our goal is to develop DOEX a genuinely decentralized system. We have created a voting DOEX token for this purpose.
Holders of the token will have voting rights and power depending on their token holdings and may discuss, propose, and vote on any DOEX platform improvements. Anyone with a solid idea may enhance the protocol and be rewarded for it.
Users often delegate their voting rights on proposals by directly raising the necessary functionality. A proposal or function must get a majority of votes in order to be approved by the community. If there are more than two possibilities, the proposal with the most votes wins. To vote, users or community members must have DOEX tokens, which will be locked until the voting session finishes.
Among the applications of DOEX token are:
• Ability to cast votes and participate in the governance of the platform
• Incentivization of platform members
• Payment of fees such as Swap fees and slippage fees
• Participation in Liquidity Pool
• Payment of reward to Liquidity Providers