Decentralized exchanges are one of the core services and utilities that draw people to interact with a blockchain network. Whether you're looking to swap a few tokens for the next 100x gem, seeking a passive income source through staking, or looking to buy the NFT you've been in love with since first-sight -these marketplaces not only play a key role in keeping the blockchain economy alive; but help users to access the world of finance 2.0 offerings. It is almost inevitable that a person who is investing in cryptocurrencies will eventually use one as they progress.
For this reason, DEX coins are always on my radar as potential investments; however, as we have witnessed on other blockchains, not all decentralized exchanges are created equal. Despite most exchanges offering roughly the same utility to their customers as their competition, some exchanges: like Uniswap, have captured far more of the market then their competition- due in no small part to deep liquidity pools from fantastic marketing and constant innovation by a strong core team.
Today I'd like to talk about a project that I believe has all the parts in place to, and a genuine shot at, replicating the successes of the more popular DEX protocols like Uniswap, Pancakeswap, etc on the Cardano blockchain - potentially bringing with it a greater probability of large ROI . With a combination of highly experienced and successful team members endorsed by Charles Hoskinson himself, and a bleeding edge blockchain network able to interact with Cardano seamlessly, Ergo and Ergodex have separated themselves from the other competition building on the Cardano network.
Ergodex is a non custodial decentralized exchange and AMM building on top of both Cardano and the Ergo blockchains. Ergo, and Ergodex were founded by IOHK researcher, and former Smartcontracts.com (Chainlink) founder Alex Chepurnoy.
Developed with the fully Cardano-compatible eUTxO model created by IOHK, Ergo and Ergodex seek to bring the assets of both ecosystems to unparalleled levels of interoperability, utility, and liquidity between the two blockchains.
Say goodbye to layer 2 and bridging.
One of the most anticipated features in the blockchain community has to be interoperability between chains, and over the last couple of years the industry has progressed quite a bit in this area -but we're not quite there yet. Some layer 2 solutions have done a fantastic job at mitigating the nuisances we've run into while utilizing our favorite side chains, but full interoperability is not yet a feature on most. Well, this level of interoperability is available between Cardano and Ergo.
Being able to seamlessly send your tokens from one platform or wallet to another, without fear of permanent loss from a mistake. Not having to convert, wrap, or bridge tokens to use them on the adjacent chain or DEX, and completely eliminating wait times of layer 2 solutions when your in a hurry. Not to mention simplifying the learning process for new users, and taking down barriers of entry into the crypto markets. While ERGO is it's own blockchain with it's own ecosystem, both it and Cardano share the eUTx0 account model modified from Bitcoins UTXO, which allows them to operate as if they were one -despite Ergo being POW (proof of work). Even Ergo's low gas fees, which manage to edge Cardano's 😉
eUTxO blah..blah..compatibility..blah... How about mining?
So, having established that Ergo and Ergodex are fully compatible with Cardano, what else does it offer? Being a POW blockchain derived from Bitcoin has other advantages, and none more so than that ERGO can be mined. In fact, not only can ERGO be mined, but it runs on the ASIC-resistant Autolykos algorithm to make mining ERGO available to the masses.
The Autolykos POW algorithm is also specifically designed to work with consumer-grade electronics and graphics cards, so there is no expensive dedicated machinery or top of-the-line graphics cards required to mine ERGO. The ERGO miner is available for both Windows and Linux, and supports Nvidia and AMD graphics cards. Did I mention it's more energy efficient than mining ETH also? Danger zone
Comparables and tokenomics
This is where things get a bit interesting... and fun. Ergodex is a pretty new project started by Ergo; in fact, it has not released a total token supply yet; however, ERGO has. With a 97,739,924 million token supply ERG is what I would call a small cap coin. To me, the mix of experienced team members and new technology sounds great, and I can easily see ERG making it into the top 100 soon, if not the top 30 eventually - if it delivers on all of its promises. I see Polygon as a comparable to Ergo in both market cap and utility eventually.
As for ERGX, we're so early into the project that we are going to have to wait and see what token supply is given to the exchange, but regardless, this is a token I'm going to monitor like a hawk for details on the release date, total supply, and other lose ends. If ERGO and Ergodex can deliver on their promises to create a seamless integration of the Ergodex platform, we could be looking at a top-tier exchange like Uniswap. What I love about the ERGX idea is that even if it doesn't become a huge thing on Cardano (it will), it's also got value as an exchange for it's own ecosystem.
Ergodex has aspirations of being the top- tier exchange in both the Cardano and Ergo ecosystems. Ergodex not only have the talent to achieve this, but the audience as well in the Cardano community. The team behind both projects is fantastic, with the former founder of Chainlink, Alex Chepurnoy, leading the way -making it even more likely they achieve their goals. Both Ergo and Ergodex offer an interesting mix of features including: full interoperability with the Cardano Network, cheaper gas prices than Cardano network, and in ERGO's case, it's own ecosystem. ERGO should appreciate in value with increased attention from the cardano ecosystem, but even on their own, Ergodex should appreciate ERGO in value, especially when the Ergodex platform is released.
As with all investments, I thoroughly research them, and I invest at my own risk. I caution all others that they must do their own research as well, so this is by no means a suggestion to ape into any coin without doing your own research and understanding the risks. Please be careful while trading. Use caution with how much money you put into small cap coins, and never put in what you cant afford to lose 😉.
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