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JPMorgan Spin-off Kadena Launches Multi-protocol DiFi Exchange

Kadena, the first blockchain company to come out of J.P. Morgan’s Blockchain Center for Excellence, has announced the launch of a multi-protocol decentralized exchange (DEX). The DEX, dubbed Kadenaswap, will use the firms 20-chain sharded and scalable layer-1 public blockchain to facilitate up to 480,000 transactions per second.

In addition to the DEX launch, Kadena has partnered with ZelCore to provide full-node incentivisation for miners on its Flux platform. ZelCore is the recommended third-party wallet provider for users of Kadena’s KDA token. Kadena will also give one free month of GAS to anybody who adopts the new system during the month of October 2020.

The launch solidifies Kadena’s foray into the decentralized finance (DeFi) space, a technology that has exploded in recent months. The rise of DeFi protocols and their use of the Ethereum blockchain has led to exponentially increasing GAS prices, causing havoc for users and developers. This has resulted in the collapse of several non-DeFi protocols that were unable to attract users due to the unaffordable GAS cost.

Scalability solutions

Now, companies like Kadena are looking for novel ways to implement DeFi projects, including the use of alternative blockchain platforms. Other proposals, like ‘CeFi’ protocols that utilize the scalability of centralized exchanges, have also been suggested, or the use of off-chain ‘layer-2’ protocols like Lightning Network.

Kadenaswap will use the multi-chain scalability of the Kadena blockchain to scale on the base layer and remain fully decentralized. To do so, it will utilize decentralized bridge technology in Pact to access major protocols on any chain. Pact is a smart contract language that facilitates interaction with DeFi and stablecoin projects like Celo, DAI, DOT, ChainLink (LINK), and ETH. It will be used in early stages to create native decentralized bridges to DeFi-supporting blockchains like Ethereum, Cosmos and Polkadot.

“Ethereum made DeFi possible, but congestion and high gas prices threaten the sustainability of the DeFi experiment” said Kadena Co-founder and President Stuart Popejoy. “Kadenaswap’s support for multiple protocols and the ability to scale across the Kadena public multi-chain network will provide a much-needed, fully decentralized alternative to CeFi.”

New opportunities for DeFi

Kadenswap will bring to light new opportunities for automated market makers (AMMs) to balance liquidity across networks by creating a KDAX governance token that will allow stakeholders to participate in network activities and decision-making.

The platform will launch in Q4 of this year and will encourage developers to get in early with ZelCore’s Flux platform incentives and a developer engagement program.

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