The ErgoDEX team tweeted that they are two weeks into a testnet run and have been getting stable results. The next step is performance optimization and ironing out bugs before launching on the Cardano chain.
We have been running our Cardano testnet for around 2 weeks at this point. We are now getting stable results with swaps, adding and removing liquidity on a number of wallets.
From here on out, our goal is to optimise the performance of ErgoDEX and fix any issues that may occur!
— ErgoDEX (@ErgoDex) May 24, 2022
Recent times have seen criticism leveled at Cardano over its lack of dApp offerings, especially those pertaining to DeFi.
DeFi Llama currently shows ten DeFi dApps on Cardano, four of which are inactive. Whereas Ethereum is home to 486 different DeFi protocols.
Nonetheless, the imminent release of ErgoDEX will go some way to addressing concerns over the lack of dApps on Cardano.
Who is Ergo?
Ergo launched n 2019 as an advanced Proof-of-Work (PoW) chain, featuring technologies such as zk-proofs and adjustable block size, with the added twist of being ASIC resistant.
“Ergo is a proof of work (PoW) blockchain platform with Turing complete smart contracts that employs a number of advanced features like zero-knowledge proofs, ring signatures, oracles, and adjustable block size.”
Proponents of ASIC resistance argue that it leads to greater decentralization, as there is no benefit to mining with ASIC machines compared to a GPU. As such, ASIC-resistant chains are minable by hobbyists and everyday people.
The team partnered with the commercial arm of Cardano, EMURGO, in 2020, to explore research and develop stablecoin technology and “the provision of DeFi applications.”
One of the outcomes of this partnership is the ErgoDEX, which is due for rollout soon. However, the Ergo ecosystem also includes the SigUSD stablecoin.
What are the benefits to Cardano?
ErgoDEX will allow users to trade assets and provide liquidity much like any other DEX. But ErgoDEX will offer the added benefit of cross-chain liquidity and interoperability between the Ergo and Cardano chains.
“A noncustodial, decentralised exchange that allows a quick, effortless and secure transfer of liquidity between the Ergo and Cardano networks.”
It will also include CEX-like features such as limit orders, partial filling, and buy-back supports. Plus, by making use of “multi-stage contracts,” users can also take advantage of timed-release payments. This is particularly useful in giving users the option to cancel orders if something goes wrong.