On March 25, Kadena blockchain announced the launch of Bro-DEX, the first order-book DEX in its ecosystem, marking a new step in the platform's development.
Bro-DEX: A New Decentralized Platform
Bro-DEX operates on an order-book model, different from more common AMM-based DEXs that use liquidity pools. This setup matches buyers and sellers accurately by their placed orders, providing a level of precision that AMM systems cannot offer. A significant feature of Bro-DEX is the elimination of maker fees, thereby encouraging liquidity provision and vibrant trading activity.
Why Bro-DEX Fits Well with Kadena
Kadena blockchain is uniquely suited for Bro-DEX due to its scalability, security, and decentralization. The Chainweb architecture allows handling up to 480,000 transactions per second. Kadena's smart contract language, Pact, ensures reliability and error prevention, essential for a DEX handling real-time financial transactions.
The Importance of Order-Book DEX for the Market
The emergence of AMM-based DEXs brought simplicity and accessibility, yet they have drawbacks like slippage and impermanent loss. Order-book DEXs, such as Bro-DEX, address these issues by offering a more traditional trading experience. Users can set precise buy or sell prices, avoiding volatile pool pricing.
Bro-DEX showcases Kadena's potential to support cutting-edge financial tools, strengthening its position as a leading layer-1 platform.
