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Kadena Launches the First Gas-free Decentralised Exchange

By:
Mohadesa Najumi
Updated: Aug 1, 2022, 14:23 GMT+00:00

After months of anticipation, Kadena has launched the first decentralised exchange to offer gas-free trading

Kadena logo on phone

Key Insights:

  • Kaddex delivers gas-free liquidity pooling through Kadena’s braided chain framework.
  • KDX stakers can earn 0.05% on all swaps taking place on Kaddex. 
  • The Kaddex liquidity mining program is designed to attract liquidity through the distribution of KDX tokens.

Kadena, the hybrid proof-of-work (PoW) blockchain that combines both a Layer 1 public chain protocol with a Layer 2 network, has announced the launch of a gas-free decentralised exchange (DEX) known as Kaddex.

The project notes that its team undertook a “rigorous, multi-stage audit” of their code, launched a public Devnet build and opened a bug bounty program in partnership with Immunefi to incentivise overall improvements to Kaddex.

Through Kadena’s (KDA) braided chain framework, Kaddex delivers staking and gas-free liquidity pooling that will “always remain free”. The project claims that together with gas-free transactions, Kadena’s scalable blockchain will ensure fast and secure settlements.

Since everything from liquidity and provision to pricing and swapping is done entirely on-chain, there is no need for intervention from off-chain oracles. What’s more, Kaddex represents the only multi-protocol DEX with native decentralised bridges, which means that users can access value through a single platform.

KDX stakers will earn 0.05% on all swaps taking place on Kaddex, enabling holders to earn passive income whilst still participating in governance.

Indeed, the Kaddex decentralised autonomous organisation (DAO), which is focused on ecosystem development, plays vital role in controlling the parameters for individual pools. Its purpose is to establish community ownership of the ecosystem by allowing members to steer the development of the platform.

Liquidity Mining Program

A standout feature of the newly launched DEX is that it implements a more modernised version of the Uniswap v2 automated market maker (AMM) by using the Pact programming language.

A liquidity mining feature has been added to the code in order to incentivise users to act as liquidity providers (LPs). More specifically, LPs will have two options, either claiming 0.25% of the swapping fees or rewards in KDX tokens with a programmatic booster.

As such, the Kaddex liquidity mining program is designed to attract liquidity through distribution of native KDX tokens, which the project claims will “generate lucrative pool boosters for early LPs that will non-linearly decrease” with time.

Other notable developments that are planned on the Kadena roadmap include a push for additional U.S. and global exchange listings, as well as development of a lending platform infrastructure.

About the Author

Mohadesa Najumi is a British writer who has worked within crypto, forex, financial technology, and the stock market industry. Mohadesa received her MSc in Political Science and International Relations at the University of Amsterdam.

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