• Cardano’s First eUTxO Cross-Chain DEX Is Now Available on the Public Testnet

  • Cardano’s first eUTxO cross-chain DEX, ErgoDex, has debuted on its public testnet, according to its official Twitter handle. ErgoDEX is a decentralized exchange that employs Cardano’s unique design to enable traders to perform atomic swaps or cross-chain trading, allowing them to automatically exchange contracts from two different blockchains.

    Using the eUTXO ledger paradigm, the cross-chain DEX integrates contracts from AMM DEXs with order contracts from order book DEXs, providing shared liquidity between exchanges established on the Ergo and Cardano blockchains.

    The Cardano ecosystem is rapidly developing, thanks to numerous innovative new products. Djed, a decentralized algorithmic stablecoin, recently went live on the public testnet.

    Charles Hoskinson, founder of Cardano and CEO of IOHK, describes this as a significant milestone for algorithmic stablecoins “DJED is now available on the testnet. This is a significant achievement for all algorithmic stablecoins.”

    The Cardano eUTxO model

    Hoskinson has argued that Bitcoin’s UTXO mechanism has not progressed due to its lack of programmability. The IOHK CEO stated that Cardano’s Extended UTXO (EUTXO) accounting mechanism appears to be “the natural next step.”

    The UTXO model is used by Bitcoin, but the account-based model is used by Ethereum, which depicts assets as balances. According to Cardano developers, the EUTXO concept is superior than Ethereum’s account-based paradigm. Because of the “much greater” surface area for attack, two or more parties can control the same data. The EUTXO paradigm is also very parallel and scalable.

    The Cardano founder believes the concept is what Ethereum developers are “fundamentally missing,” claiming that Satoshi Nakamoto, the mysterious Bitcoin creator, abandoned the account-based architecture Ethereum now employs due to its shortcomings.

    According to Input-Output CEO Charles Hoskinson in a recent tweet, if staked coins were added to Cardano’s TVL, the blockchain’s TVL would be more than $19 billion. According to DefiLlama data, Cardano’s total locked value is currently near $200 million, excluding staked governance assets.

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