Hopes are growing at Cardano (ADA) to gain a foothold in the DeFi sector after all. With OccamX, a DEX based on Cardano wants to launch in February and score technological points with a trick.
Cardano (ADA) slipped below the 1 US dollar mark over the weekend in parallel with the price losses on the overall crypto market and is thus trading as low as it was last twelve months ago. Sharp criticism of Cardano has been ignited for months by the fact that the ecosystem for ADA is by far not expanding as successfully as expected in the direction of DeFi. Although SundaeSwap, the first decentralized crypto exchange (DEX) under Cardano, has achieved respectable successes in the last month, it remains a lightweight in its field with around 125 million US dollars in deposited capital. The Cardano community is now looking to the OccamX project with renewed optimism. Via Twitter, the project promises to launch a DEX of the same name before the end of February.
In a blog post, the creators of OccamX explain what they want to do differently and better than SundaeSwap. To understand this, a brief foray into technological details is necessary. The Alonzo upgrade brought smart contracts to Cardano in September 2021, setting the stage for DeFi. But smart contracts organized directly under Cardano suffer from two formidable limitations: Transactions cannot be completed in a block, and thus cannot be completed in real time. On top of that, even the modest turnover of SundaeSwap has overwhelmed the capacity of Cardano’s blockchain.
OccamX aims to circumvent these foreseeable problems by using Milkomeda, a protocol that acts as a second blockchain (layer 2) between Cardano and the DEX itself. Milkomeda also handles the Ethereum Virtual Machine (EVM), which has become the standard for organizing smart contracts. With this design, OccamX is sure to elegantly work around the known limitations of DeFi directly with Cardano. In the same block and less than three seconds, DeFi deals are to be realized at OccamX thanks to Milkomeda, is the confident announcement.
Conclusion: Does OccamX show a way out of Cardano’s DeFi misery?
Input Output as the crypto company behind Cardano is participating via Twitter to drum up publicity for OccamX. The exact launch date for DEX is not yet known, but should become public soon. Like other DEX, OccamX will try to attract liquidity with its own token (OCX) as a reward at launch, in this case in ADA. The next few weeks will show whether the concept, which also sounds technologically exciting, will work out.
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