A DEX
A DEX on kadena is the best-positioned DEX to solve MEV forever, with best execution. Move past the Ethereum/EVM gas Stockholm syndrome and understand how a scalable smart contract platform can make DeFi profitable for swappers and liquidity providers alike.
Current MEV solutions require non-transparency like private mempools etc. It's sad because the solution is so simple: implement slippage controls at execution time to break up trades so when MEV tries to frontrun, you trade slower, or not at all.
If it's so easy why doesn't everybody do it? Because gas. Kadena is scalable and has gas stations so that you can both
(a) keep gas prices low/free and
(b) apps can fully subsidize user gas risk for momentary fluctuations.
Without this you can't implement best execution.
On Eth, it is impossible to split one trade into many without huge gas. On Eth, it is impossible to not trade when faced with huge slippage, b/c the user pays big gas for no result. Best execution is impossible on Ethereum/EVM/non-scalable DEXes. A DEX on kadena has the solution.
On A DEX on kadena, if market conditions are right, you'll trade your full order, but if not, A DEX on kadena will limit your quantity and initiate a new trade for the balance, and repeat. How much it backs off respects your desire to trade fast as expressed by your price/slippage sensitivity.
Patient traders can therefore minimize slippage and even get price improvement over time, while a liquidity-seeking traders can take more risk for faster execution. A DEX on kadena will eventually even incorporate analytics to improve risk management with VWAPs and such.
This is only possible on where gas is cheap and gas risk is managed by gas stations. You can't turn 1 trade into 10 and have the user to pick up the tab, but gas stations can incentivize LPs to take on gas risk in return for rewards.
With A DEX on kadena , DeFi will meet + surpass equity markets by offering the same sophisticated techniques for best execution but enjoying the transparency and fairness of the decentralized world on Kadena. MEV will fade away and best execution will be available to all.
With market halts yesterday + pancake flashloan attack, crypto should consider volatility controls like the US equity market system. kadenaswap with multi-chain liquidity is the best-placed to prove out volatility limits and killswitches backed by a rock-solid multi-market system.
It's a great fit for DeFi really. Autonomous/automatic circuit breakers in Pact DEX code will never have the credibility problem that Robinhood had with GME/AMC halts. It's really a way for DeFi to lead the discussion and make crypto "safe for noobs".
A DEX on kadena is all about taking defi to the next level. Without multi-venue liquidity to de-risk localized manipulation, be it MEV or flashloans, your breakers will fire off too often, but with it, breakers will prevent obvious manipulation, transparently.