On March 25, the Kadena blockchain welcomed Bro-DEX, the first decentralized exchange on its scalable layer-1 Proof-of-Work network. Bro-DEX redefines decentralized trading with a unique fee structure that eliminates maker fees.
What is Bro-DEX?
Bro-DEX employs an order-book model, unlike common AMM-based exchanges that rely on liquidity pools and algorithms. This approach matches buyers and sellers directly, offering precision and control that AMM systems can't always provide. With no maker fees, Bro-DEX incentivizes market depth, a significant change for traders.
Why Kadena is Suitable for Bro-DEX
Kadena's blockchain is designed as a scalable Layer-1, maintaining security and decentralization. Its Chainweb architecture enables parallel transaction processing, reportedly handling up to 480,000 transactions per second. The Pact smart contract language adds reliability, ensuring security and verification.
The Importance of Order-Book DEXs
Order-book DEXs like Bro-DEX address issues inherent in AMM-platforms. They allow users to set precise buy or sell prices, avoiding unpredictable pool-based pricing. For Kadena, supporting an order-book exchange indicates its ability to back innovative financial applications.
Bro-DEX's launch on Kadena showcases the blockchain's potential to support cutting-edge financial tools. By removing maker fees and attracting traders, Kadena positions itself as a competitive player in the Layer-1 blockchain race, proving scalability and security can coexist.
