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One of the most exciting things to look forward to in the upcoming gogan era upgrade is the introduction and full integration of decentralized exchanges or decks. For short. Not only does it drastically expand the cardano ecosystem and bring a degree of interoperability to the network, but it also provides a huge boost in one area. Cardano has been sorely lacking liquidity so which cardano decks. Should we look out for and could anyone rise to be?
The uniswap of ada, let's find out what is up. Everyone welcome to crypto capital venture hit that like and subscribe button on. The way in it means a lot to me in today's video we're diving into decentralized exchanges and the colorful world of nfts defy crypto liquidity and a whole lot more now. I know what some of you are thinking. Those are all definitely some buzzwords and, if you're new to crypto a lot of these terms might fly right over your head, but by the end of this video you'll be just as excited as the oga to fans at what's just around the corner.
So, let's start at the beginning, what is the difference between a centralized and decentralized exchange? Chances are if you're, holding some type of cryptocurrency you've used an exchange, at least once in your life, whether it's binance, coinbase kraken or one of the hundreds of other exchanges out there. You'Ve probably handed over your credit details or bank details at some stage. In return for a handful of your favorite coin, you've probably also noticed that signing up required a crazy amount, personal information that had to be verified and approved before you were able and allowed to trade. This is because all the exchanges i've mentioned are centralized.
That is, they represent or funded by an institution that acts as a middleman. In every trade, that's performed in a centralized exchange. You deposit your funds, either in the form of fiat or equivalent cryptocurrency. The exchange then takes your funds and processes. The transaction on its own databases, rather than on the blockchain itself, and while you technically own the cryptocurrency in your exchange, account you don't own the private keys and for that reason your funds are always at risk of the exchange being hacked it's uncommon
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But it has happened before: between 2011 and 2014, mount gox was actually hit several times in bitcoin hacks worth hundreds of millions of dollars. So what advantages do you get out of a decentralized exchange in a decentralized exchange? The middleman is removed, shifting the transactional responsibility to smart contracts that exist and are executed on the blockchain itself. This results in an exchange that's effectively peer-to-peer, removing the need to provide personal information to an organization and reducing the risk of any mount gox-style attacks. As the exchange does not hold any user funds, dexes are also a super marketplace for native assets and rap tokens that are otherwise unavailable on the main exchanges.
At the moment, uniswap on the ethereum network is the biggest dex by far commanding over 24 of the market. Share up to almost 30 percent, when you add the v3 and v3 forked versions together, the one drawback that uniswap and ethereum network has is that native assets require ethereum erc 20 tokens in order to be transacted resulting in higher transaction fees. On the other hand, Cardano native assets live on the blockchain and are treated the same as ada, meaning they don't require additional smart contracts to mint or move around. So with Cardano smart contracts just around the corner. The race is on to build a competing dex with even better features, who are some of the contenders in the running to be the uniswap of cardano.
Let'S take a look at it right now. Sunday swap is gathering a lot of steam as we move towards the alonzo hard fork and the colorful dessert themed. Cardano decks has announced a lot of cool partnerships and features over the past few months. In a recent press release, sunday swap announced a collaboration with card starter to support development and liquidity from day one. This means by sunday swaps, projections.
They are positioned to be the largest decks on the Cardano blockchain, in terms of both total value, locked and community size. Although it has been delayed a few times sunday, swap's iso will consist of early investors sacrificing several epics worth of ada staking rewards in return for sunday. The token that powers, sunday, liquidity aquamax, is a decentralized exchange being developed as part of ocumphy's larger network, but occamfy's vision extends past just the dex, with a defy and doa application. Also in the pipeline, the team has already done some impressive work around creating launch pads for decentralized, fundraising and through the development of occam razer they're working on building a Cardano ethereum bridge when completed it would allow anyone to deposit trade and withdrawal occam's coin as either An ethereum or Cardano native token, this opens a door to ethereum holders to be able to back Cardano projects a process that, to date is impossible. [, Music ], another player in the heating up dex wars is ergodex, an automated decentralized exchange protocol built on top of both the Cardano and ergo blockchains, creating a bridge between the two ecosystems and sharing liquidity.
When it launches it will be the first dex on Cardano to offer both amm or automated market making and order book functionality with partial fill orders if they keep on track with their roadmap. Ergodex is slated to launch on day one after the Alonzo hard four combinator event now for an upcoming Cardano decks that has already got some serious credentials and traction in development. Cardax is the first and only Cardano deck so far that has won a round of funding. In project catalyst, cardax will bring native token swapping to Cardano and a mechanism for users to earn passive income as a liquidity provider. The team has indicated they are on track for a go, live in the third quarter of 2021, after participating in all the Lonzo test nets.
To date, when it comes to real-world use, cases, 8x represents a clear sign of the shift that i believe is about to happen. Apart from being an automated liquidity, pool and decentralized exchange with record low transaction fees, adax has been developing a feature that can really help. Cardano'S next phase gather some momentum. 8X'S erc20 bridge allows an attractive entry for ethereum tokens onto the Cardano blockchain. As we know, ethereum smart contracts have much higher gas fees, so the bridge can represent a potential funnel of liquidity from the ethereum network into cardano.
I'M not saying it's a certainty, but definitely a condition that could play out very nicely for Cardano [, Music ] race swap was one of the first projects announced on the Cardano blockchain and like occamfy. The raid network comes with a suite of offerings and apps to enhance the ecosystem ray swap and its native x-ray token will bring automated liquidity. A multi-asset wallet staking rewards decentralized funding, a full featured nft marketplace and a data container solution that records personal information like someone's health records or education history on the blockchain data that is accessible, immutable and trustworthy. This is definitely one to watch out for [ Music ] yay swap is advertised as the first high performance, decentralized exchange platform on the Cardano blockchain. Now, you're probably used to every dex claiming they're the first at something prior to go, live, but yay swap has some really interesting proposed features aside from the lower fees and faster transaction times when compared to ethereum yay swap wants to position itself as a decentralized Cardano Exchange with built-in mechanisms to reward those that add liquidity to the pool by holding the native yay token and just to add legitimacy to this project, yay coin is already trading on a handful of centralized exchanges.
Yay swaps roadmap has them launching just after smart contracts. Go live on Cardano. There are way too many projects to fit into just one video, so we have to give a shout out to a handful of others, including dexes, like polyswap, maladex and d fire, so who will be the next uniswap on Cardano? I still think it's too early to tell a lot of these projects are still in the development phase. Despite participating in the current Alonso test net.
It'S unclear which decks will have the most support. Come Alonzo hard for the uniswap of Cardano might not even be on this list. It could be an unannounced project, that's been developing in the shadows. The only thing i can say for certain is that, with everything happening behind the scenes, the future for Cardano is looking bright and that's all for me. I hope you enjoyed this video on Cardano's upcoming dex race.
If you enjoyed this video, please let me know by hitting that like button and if you think i missed anything, a project or anything in this video hit the comments below and let me know thanks for watching everyone and, as always, god bless
