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, the original author: WingRiders, compiled by Odaily translator Katie Koo.

At present, many people are interested in the Cardano ecological DEX. According to the latest statistics, there are currently 20 related projects under construction. WingRiders, powered by VacuumLabs, aims to build mass crypto adoption and support Cardano’s infrastructure layer.

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Why choose WingRiders among the many DEXs on Cardano?

The code for WingRiders is provided by Vacuumlabs, who have been working on Cardano since its inception. Vacuumlabs developed code for IOHK, THE CARDANO FOUNDATION, Emurgo and many other projects within the community. Vacuumlabs has a team of over 250 developers, and WingRiders is one of many projects Vacuumlabs supports, which allows the project to scale quickly when needed. Another benefit is that a DEX can be quickly and easily integrated through its partners.

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Cardano's strengths and potential

Cardano has officially become the highest quality public chain in the past year. Although many outside of Cardano consider it a “cult,” one of the reasons may have to do with some of the new development methods employed by the protocol. Today we will study one of the implementations of smart contracts on Cardano.

When Cardano released smart contracts/scripts, it took a very novel approach. After seeing the pain points caused by the growing congestion on the Ethereum network, developers wanted to minimize the logic performed on-chain and ensure that most business logic was moved off-chain. Moving this logic off-chain allows for greater scalability. In this sense, smart contracts are passive and require participants to trigger them.

Another interesting aspect of Cardano smart contracts is the issue of concurrency when interacting with a single message. We'll talk more about this in a future article.

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Community DEX (joint DEX) handles batch transactions

When we think about DEX models, we should also consider two main categories - order book DEXs and automated market makers (AMMs). AMM-type DEXs require liquidity providers to play a role. On the other hand, order book DEXs require market makers to function efficiently. These market makers need to abide by smart contracts. In a well-managed exchange, there is no room for any malicious activity.

At WingRiders, we are building a DEX on the Cardano chain using the AMM model discussed above. Combined with the smart contract advantages mentioned above, WingRiders can solve the concurrency problem because the business logic is moved off-chain, allowing for better scalability. Another interesting area the project is exploring is the “batching model” of AMMs, where escrow transactions are created and batched to minimize load on the blockchain and allow concurrent access to liquidity pools.

Similar to market makers in an order book DEX here, participants who create batch transactions still need to abide by every constraint set by the smart contract. Smart contracts on Cardano still have some areas that cannot be covered. For example, smart contracts cannot verify advance orders and fulfill orders on Cardano.

There is also a balance between how much power the contract allows bulk traders to have, and what incentives are given to them to ensure they remain "good players" (e.g. tighter contracts, collateral, monetary incentives).