Cardano’s DEX, PlutuSwap Aims to be the Next Big DEX on the Blockchain

0
76
Cardano’s DEX, PlutuSwap Aims to be the Next Big DEX on the Blockchain
Cardano’s DEX, PlutuSwap Aims to be the Next Big DEX on the Blockchain

PlutuSwap is running against time in developing its automated market maker platform and promises that it will be the DEX/AMM platform of choice for the Cardano blockchain when it launches.

Cardano’s DEX to Replace the Traditional Order Book

PlutuSwap is a decentralised exchange that uses the Extended Automated Market Maker (EAMM) protocol as the backbone and is built on top of the Cardano blockchain infrastructure using the UTXO mechanism. The working principle of the AMM-based decentralised exchange is to replace the traditional order book with a liquidity pool; the liquidity pool provides upfront funds for two assets in the chain, promoting instant swaps and transactions of currency pairs.

Liquidity providers who generate passive income from their deposits via transaction fees based on the percentage of liquidity they provide can control the liquidity of decentralised exchanges. With the large-scale explosion of blockchain technology, decentralised exchanges based on automatic market markers (AMM) have gained momentum.

Advantage of PlutuSwap

The use of AMM PlutuSwap.com aims to take advantage of the widely accepted AMM-based decentralised exchange protocol. They are one of the first pioneers of this mechanism in the Cardano ecosystem. With its development and the Alonzo hard split introduced in a few days, The fork will enable project owners and developers to create and deploy smart contracts on the Cardano blockchain.

Smart contracts are computer codes that perform functions when in predefined conditions. This allows users to create new native Cardano tokens and further expand the benefits of Cardano.

PlutuSwap Ecosystem

The PlutuSwap ecosystem will include equity pools, liquidity provision, a new token issuance mechanism and a cross-chain transaction log. In addition, its native Cardano utility governance token of $PLUTU 100 million supports the protocol.

PlutuSwap’s initial stock offering for early adopters is ongoing as you can become one of the earliest $PLUTU token holders.