Cardax, a decentralized exchange (DEX) based in the Netherlands, which will operate on the Cardano network, has announced that it has raised $1.5 million in a seed round.
According to the report, the Cardano-based decentralized trading platform earned the funds during a first community token sale. The funding will be channeled to the support of the goal of creating the platform. The platform is expected to launch in September 2021.
Purpose of Establishing Cardax Decentralized Exchange
Going by the report, Cardax DEX, powered by the EAMM protocol, is designed to serve as a viable and powerful trading venue in the Cardano ecosystem.
Cardax is expected to provide liquidity to projects that issue native tokens. The platform will be made open and accessible to everyone. This implies that everyone has the ability to become a liquidity provider and start earning CDX tokens.
Following the successful community sale, by mid-August 2021, Cardax decentralized exchange plans to do a public token sale.
Back in April 2021, Cardax DEX announced it was seeking $50,000 to enhance the development of the decentralized trading platform:
“The requested budget in Fund 4 ($50,000) will cover the implementation costs of Phase 1 of the project. As outlined above, this phase will focus on the system architecture and UI/UX of Cardax.”
Cardax Project Roadmap in Summary
According to the update released in April, Cardax major purpose is to provide liquidity to projects that issue native tokens on Cardano, as earlier mentioned.
It’s worth noting that the implementation of the Mary protocol upgrade on the Cardano mainnet has boosted the desire for native exchanges on the Cardano network.
The update stressed that the availability of a native Cardano exchange will proffer a lasting solution to some trading challenges and gaps within the ecosystem of the emerging smart contract platform.
According to the update, Cardax is coming to the Cardano network with the following 7 mind-blowing use cases;
- Support for any Cardano native token
- Ability to join liquidity pools to collect fees on ADA- Cardano native tokens pairs
- Liquidity-sensitive automated pricing using EAMM protocol
- Ability to trade ADA for any Cardano Native Token
- Ability to trade between Cardano Native Tokens through a single transaction
- Ability to trade and transfer to a different address in a single transaction
- Easy purchase of ADA or any Cardano Native Token from Yoroi wallet.