KADENASWAP OFFERS DEFI A MULTI-PROTOCOL DECENTRALISED ALTERNATIVE

New York-based blockchain tech company Kadena has announced a multi-protocol decentralised exchange (DEX) named Kadenaswap. 

Kadenaswap will utilize Kadena’s 20-chain sharded and scalable layer-1 public blockchain with 480,000 transactions per second capability. To celebrate the occasion, Kadena is offering a free month of gas during October 2020, is launching a developer engagement program, and is partnering with ZelCore on full-node incentivisation for miners. 

Explaining the motivation behind Kadenaswap, the company pointed out that as DeFi continues to grow by billions each month, the fundamental problems of Ethereum are “breaking platforms and sending developers scrambling.” 

Ethereum is currently the infrastructure that most DeFi activity relies on, but it is struggling to cope, and gas prices have reached as high as $99 per transaction. Non-DeFi apps have been crowded out and recent hacks have caused losses of ten of millions of dollars – highlighting the major security issues faced by developers when dealing with Ethereum’s smart contract language, Solidity. 

While major DeFi projects have looked at alternative blockchain platforms, including “CeFi”, which leverages centralised exchanges’ scalability, and layer-2 networks like the Lightning Network, Kadenaswap is taking a different approach.

By leveraging Kadena’s multi-chain scalability and scaling on the base layer, and using decentralised bridge technology in Pact for access to major protocols regardless of the chain they originate on, Kadenaswap maintains a truly decentralised approach.

Kadena Co-founder and President, Stuart Popejoy, explained: “Ethereum made DeFi possible, but congestion and high gas prices threaten the sustainability of the DeFi experiment just as it is poised to skyrocket.

“Kadenaswap’s support for multiple protocols and the ability to scale across the Kadena public multi-chain network will provide a much-needed, fully decentralized alternative to ‘CeFi’ on centralized exchanges and off-chain Layer-2 solutions. 

“Combined with community efforts like our developer program launch and free gas campaign, Kadenaswap shows a way forward to mass adoption of DeFi protocols.”

Kadenaswap will leverage the Pact smart contract language to interoperate with major DeFi protocols and stablecoins such as BTC, CELO, DAI, DOT, LINK, and ETH. It will also launch in stages beginning with the creation of native decentralized bridges to Ethereum as well as other networks such as Cosmos and Polkadot. 

Kadena’s founders bring proven financial and technical expertise from building J.P. Morgan’s first blockchain and previously working at the U.S. Securities and Exchange Commission (SEC). Additionally, as the first layer-1 multi-protocol DEX, Kadenaswap will create opportunities for automated market makers (AMMs) to balance liquidity across networks. 

Toward this end, a governance token named KDAX is under consideration to allow stakeholders to participate in setting incentives and other mechanisms. The first stage of Kadenaswap, which will include major components such as bridges, ERC-20 wrapped tokens, etc. will go live in Q4 of this year. Additional details can be found in the release of the company’s Q4 2020 roadmap next month.

AYO.NEWS says:

Has Kadena just presented the first real alternative for the DeFi ecosystem? There’s little doubt that Kadena’s multi-chain, sharded, scalable blockchain is technically impressive – and has resulted in the world’s fastest blockchain (which also addresses both environmental and security concerns), so success might end up coming down how well Kadena sells itself in the social sphere – after all, there are, for some reason, still a lot of diehard Ethereum loyalists out there.