As stated by its official Twitter handler, 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 the 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 agrees 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 the late 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.