On March 25, the Kadena blockchain announced the integration of Bro-DEX into its ecosystem, marking the debut of the first order-book DEX on a Proof-of-Work network.
What is Bro-DEX?
Bro-DEX operates on an order-book model, unlike the more common AMM-based DEXs that rely on liquidity pools and algorithms. This allows for direct matching of buyers and sellers, providing a level of precision that AMM systems often can't replicate. Moreover, Bro-DEX's fee structure is unique: it eliminates maker fees, which encourages market depth.
Why Kadena is Perfect for Bro-DEX
Kadena’s blockchain is ideally suited for Bro-DEX due to its ability to scale without sacrificing security. Its Chainweb architecture combines multiple PoW chains, enabling up to 480,000 transactions per second. Additionally, its smart contract language, Pact, offers reliability and security essential for financial transactions.
The Significance of Bro-DEX for DeFi
The launch of Bro-DEX highlights Kadena’s potential to support cutting-edge financial tools. Choosing an order-book model allows traders to avoid risks associated with pool-based pricing and offers more control over pricing. This is significant for the DeFi community, as it signals the evolution of more controlled and secure platforms.
The launch of Bro-DEX on Kadena demonstrates the blockchain’s ability to support advanced financial tools, delivering on the promise of secure, scalable, and user-friendly solutions in the layer-1 market.
