Cryptocurrencies have become the best investments in recent times. Many investors have started to invest in cryptocurrencies. There are two different types of exchanges that allow users to buy or sell crypto. Choosing a centralized exchange means one has to pay high transaction fees. Also, all the activities are controlled by third parties. Whereas decentralized crypto exchanges are completely different from the centralized exchange. They offer a lot of benefits to the users.
Decentralized exchanges with the Automated Market Makers protocols have gained so much popularity. It allows the users to trade in an automatic and permissionless way. Instead of relying on traditional buyers and sellers, it allows the users to trade using liquidity pools. The prices of the crypto tokens are determined by the mathematical formula. So, this feature has become important in the DeFi ecosystem. Read below to know about the ADAX decentralized exchange.
What is ADAX?
ADAX is an automated liquidity protocol that allows users to trade within the Cardano ecosystem. The platform provides full freedom to its users. Because it uses a non-custodial protocol making it easy for the traders to use the platform without any hassles. The best aspect about this platform there is no order book like other exchanges. It allows the users to connect directly with others. One gets full control of their assets and they don’t have to provide their private keys to the traders.
Solves different market problems:
Most of the decentralized crypto exchanges run on the Ethereum blockchain. But Ethereum has its own problems that could not meet the current demands of the crypto users. So, different blockchain has decided to provide the best service. In which, Cardano blockchain comes with the best functionality and solves all the problems of Ethereum blockchain. ADAX is a Cardano-based decentralized network that comes with the best features to solve problems.
Liquidity: ADAX comes with a new model to make a change in fee rewards. Most of the traders prefer low-volume because they come with bigger rewards. But one should understand the risk involved in this model as it holds impermanent losses. Whereas the ADAX model decreases the risk and allows the users to provide liquidity with its attractive feature.
Fees: Another huge problem in crypto exchange is the higher fees. Whereas the ADAX model does not require any platform fee and the fee can be directly collected by the liquidity providers. So, they get better profit with the lower fees.