AdaSwap partners with COTI for DEX Integration
AdaSwap, which aims to become the first decentralized exchange on the Cardano network, has announced that it has partnered with COTI, the issuer of the Djed stablecoin to ensure its integration into the AdaSwap DEX.
AdaSwap is building a native, gamified DEX on the Cardano network that enables the crypto community to easily swap Cardano-based tokens in seconds with low fees, something that is not possible right now on Ethereum based DEXs. As part of that project, it’s also creating a native Cardano NFT marketplace plus fixed, long-term, and high-yield liquidity pools that will allow token holders to stake, buy and sell NFTs and earn interest on their investments.
AdaSwap to List Crypto Pairs
AdaSwap will explore listing opportunities for Djed on the AdaSwap DEX and examine ways in which it can utilize the algorithmic-based stablecoin network Djed is building. Djed is an algorithmic, Cardano-based stablecoin protocol that behaves like an autonomous bank, buying and selling for a price in a range that’s pegged to a target price. Through these smart contract-based mechanisms, Djed ensures price stabilization, making it especially promising in decentralized finance operations. The algorithm works by operating a reserve base of coins, minting and burning tokens as necessary to ensure price stability.
“As a Cardano believer, I love seeing COTI’s strong involvement in the Cardano space, it shows the potential being created for the Cardano ecosystem by innovative participation,” said Lennon Qualmann, CEO of AdaSwap. AdaSwap platform users will be incentivized with rewards to provide liquidity through Djed trading pairs.
Need for Interoperability
This is likely to be the start of the rapid development on the Cardano network as any new network on the horizon welcomes DEXs onto the network in the first phase as it is a product that many of the existing crypto users can easily associate with, based on their experience in Ethereum and other networks. If the DEX does manage to provide services as good as the other exchanges and at a low fee, then it should be able to bring in a lot of traction.
But again, the challenge would be to ensure that the interoperability is also worked on at the same time within the Cardano network, or else the users from other chains are unlikely to migrate into the network for want of a solid reason.