This DeFi project is radically different...

Hashoshi interviews Jarek Hirniak, Protocol Architect at Axo, to discuss the universal trading protocol that uses the eUTXO blockchain model to its fullest extent. While you may be familiar with DEXs like Uniswap that use account-based blockchains like Ethereum, building DeFi primitives on a blockchain like Cardano offer a wildly different set of both opportunities and constraints; these allow developers to build a variety of unique types of decentralized financial products that are only possible in this different environment.

Learn more about Axo by reading the paper or visiting their website:

Paper - https://www.axo.trade/whitepaper.pdf

Website - https://www.axo.trade

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Takeaways

AXO is a decentralized finance project that aims to solve the challenges of building an automated market maker (AMM) by leveraging the UTXO model.

The UTXO model used by Cardano allows for independent actors to define their own rules for trading, leading to more efficient markets.

AXO's X-Lang is a domain-specific language that allows users to define trading rules and create programmable swaps.

AXO plans to expand its functionality to include lending and borrowing, options, futures, perpetuals, and prediction markets. Axo is focused on the evolution of X-Lang and the potential for decentralization in trading protocols.

Composability and user experience are key considerations in DeFi, and Axo aims to address these challenges.

Axo is working on user education and onboarding to make DeFi more accessible to a wider audience.

Axo has a unique approach to yield farming and is developing a new model to reward liquidity providers.

Users can start using Axo by visiting the Axo website and exploring the basic and pro modes.

Scalability challenges in Cardano have been addressed by Axo through the use of the EUTXO model and the OME network.

Chapters

00:00 Introduction to AXO and Jarek's Background

03:04 Fundamental Approaches to Building an AMM

08:02 Comparison of Ethereum and Cardano

11:22 Designing AXO for UTXO Chains

16:08 Programmable Swaps and X-Lang

24:54 Evolution of X-Lang and Decentralization

26:04 Composability and Design in DeFi

27:18 Integration with Different DeFi Components

28:29 Challenges with DeFi UX and User Education

32:11 Axo's Approach to User Onboarding

33:19 Axo's Position on Yield Farming

36:13 How to Start Using Axo as an Everyday User

40:57 Scalability Challenges and Solutions