Kadena, the hybrid proof-of-work (PoW) blockchain that combines a layer 1 public chain protocol with a layer 2 network, has announced the launch of a decentralized decentralized exchange (DEX) called Kaddex.
The project team reports that its has performed a rigorous multi-phase review of the code, launched a public version of Devnet, and launched a bug rewards program in partnership with Immunefi for general incentives and improvements to Kaddex.
Through Kadena’s Intrecciato Chain (KDA) facility, Kaddex offers a gas pooling and cash pooling system that is always collected for free. The project argues that, together with all gas-free transactions, Kadena’s scalable blockchain guarantees fast and secure settlement.
Since everything, from liquidity to supply, from pricing to swapping, is done entirely on the chain, there is no need for the intervention of oracles outside the chain. Additionally, Kaddex features a unique multi-protocol DEX with decentralized native bridges, which matters that users can be accessed at value through a single platform.
KDX Stackers will earn 0.05% on all swaps that take place on Kaddex, agree to receive Passive Income to participate in governance.
In fact, Kaddex’s Decentralized Autonomous Organization (DAO), focused on ecosystem development, plays a fundamental role in controlling the parameters of each pool. Its purpose is to Establishe the community property of the ecosystem, members to govern the development of the platforma.
Liquidity withdrawal program
A distinctive feature of the newly launched DEX is the implementation of a modern version of the Uniswap Automatic Market Maker (AMM) v2 using the Pact programming language.
Added a liquidity mining feature to the code to encourage users to act as liquidity providers (LPs). In particular, if LP offers the necessary options: request 0.25% commission for the exchange or reward of the KDX token with a booster program.
In this way, Kaddex’s liquidity mining program aims to attract liquidity through the distribution of native KDX tokens, which according to the project will generate profitable boosters for the first LPs that will decline non-linearly with the pace.
The net reward is 40% of the total amount of KDX, the lower latency of the long-term DEX, ensures fair distribution and decentralizes a certain number of participants. Since it has 1 billion KDX, Kaddex distributes 400 million tokens (40%) and even more cash. However, Kadena will not coin extra tokens to ensure that the additional rewards do not go to the detriment of KDX holders when the action is taken into account.
This means that when users withdraw cash and opt for KDX rewards, Kaddex Smart contracts use the rewards accrued by participants (funded by trading fees of 0.25%) by purchasing the equivalent of KDX in the market and Delta in the Rewarde Standard and the Multiplier Coined Rewarde Plate of the Network.
Other noteworthy developments foreseen in the Kadena roadmap include the push for new listings on the US and global exchanges and the development of the lending platform infrastructure.