Yasha and Ilya from the ErgoDEX team recently did an interview on Adaverse’s Youtube channel. The team talked about the development roadmap of ErgoDEX, interoperability with Cardano and the highly anticipated ErgoDEX token.
Trading and providing liquidity in ErgoDEX are currently active and there is over $500K worth of assets locked. ERG/SigUSD and ERG/SigRSV tradable pairs are available and several developer teams are working on bridges to Ethereum, Solana and other EVM compatible chains. Additionally, there are teams working on the Yoroi dApp connector release.
The Yoroi dApp connector was already in use on ErgoDEX with the Yoroi Nightly but now the update will be integrated into the alpha release. ERG integration with Ledger will also enable utilization of ErgoDEX via Yoroi with Ledger hardware wallets.
Ergo is built using the extended UTXO model. The benefits of the extended UTXO (eUTXO) model lie in its composability. Composability enables developing lighter applications that are interconnected and scalable, creating a unique DeFi experience on the blockchain. Other apps will be able to connect to ErgoDEX and utilize on-chain data more easily.
An important milestone on the ErgoDEX roadmap will be the release of Ergo Software Development Kits (SDKs). Ergo SDKs will allow for easier dApp deployments because new ones will be able to be built using the same stack as ErgoDEX.
During the interview, the team revealed their excitement about the V5 release of Sigma State Interpreter. This update will significantly help dApp developers by making smart contracts cheaper and more predictable.
The DEX order book will be deployed soon and refundable initial coin offerings are also planned in the roadmap. This unique feature on ErgoDEX will integrate buy-back support and partial fillings for safer investment models.
The decision to continually improve the user experience on Ergo is a priority for the team - this kind of work will make the cross-chain development process faster. Interoperability with Cardano is expected in 2022 but the team said it is hard to predict an exact date because of all the moving parts. (Note: In today's ErgoPulse, the team said development is going fast and release may come mid January) The first focus is to bring more assets such as USDT, BTC and ADA to ErgoDEX and provide a Metamask-like experience with the Yoroi dApp connector.
With cross-chain integration, users of ErgoDEX will be able to swap between chains with just one click. Atomic swaps on ErgoDEX will enable an easy transfer of assets between chains.
Another planned use case is to enable DeFi lending on ErgoDEX. Decentralized lending will allow inside-app borrowing for users. With DeFi lending, there are also plans for new models such as leveraged liquidity farming tools.
With regards to the ErgoDEX token, the team said they are researching meaningful use cases of the proposed token. Applications such as DeFi lending, leveraged farming or similar liquidity locking oriented tools could be suitable for using ErgoDEX tokens. The team said creating a token economy is a very sensitive discussion and they will be looking for the best ways to create profit for token holders. The token distribution model will be announced shortly after the token development is finalized.