Decentralized exchanges (DEX) have blown up in popularity in the preceding years. However, most developed exchanges are on top of the Ethereum blockchain.
One Ethereum alternative is Cardano, which shows off a huge dominance within the crypto marketplace. With its excellent protocol, it’s not surprising that a decentralized exchange would be developed under its feathers— and this is what led to the creation of SundaeSwap.
What is SundaeSwap (SUNDAE)?
SundaeSwap is a decentralized exchange that operates on the Cardano network, allowing anyone to lend, borrow, and stake Cardano (ADA) for other cryptocurrencies. This concept is pretty similar to Ethereum’s decentralized exchanges like Uniswap and Sushiswap. In other words, it is an automated liquidity provision protocol and a scalable, native decentralized exchange.
SUNDAE, the native SundaeSwap coin, is what powers the platform. The utility of this token includes profit sharing, governance, and reduced fees. SundaeSwap was the first-ever DEX employing the Cardano smart contracts technology launched last December 2021.
Now, let’s talk about the team behind this DEX project.
The team behind this project has previous experience in the digital currency world. We could say that this team is made up of “experts.” SundaeSwap’s dream team includes:
- Mateen Motavaf
- Artem Wright
- Matt Ho
- Pi Lanningham
- Miklós Süveges
- Mark Hansen
- Andi Kratzel
- Gaston Solis
- Christopher Borders (Adviser)
- Dewayne Cameron (Adviser)
SundaeSwap Tokenomics
At the inception of the decentralized exchange, 2 billion SUNDAE tokens were minted and were done on purpose to become slowly available throughout a certain period of time as the protocol matures.
The SundaeSwap allocation goes like this: Public (55%), Team (25%), Investors (25%), Future Hires (5%), and Advisors (2%). This token allocation has a time frame. The tokens allocated for the team will be released on a 4-year timetable, while investors and advisor gets to enjoy the 2-year schedule. All vested tokens are released every month through pro-rata.
3 Reasons to Buy SundaeSwap
SundaeSwap employed Initial Stake Offering (ISO) as its solid launch mechanism. Since ISO is used as a means of token distribution, users get to receive SUNDAE whenever they stake into pools. Basically, there are three primary reasons why you may want to go for SundaeSwap. Read on!
Revenue
Who wouldn’t want to make profits? With SUNDAE tokens, holders are guaranteed to acquire a portion of the platform’s revenue. The amount would depend on the quantity of the tokens they own.
Moreover, holders are also granted governance rights. Once the voting mechanism comes into life, holders get the privilege to make decisions regarding the project’s future. However, there would still be laws that are to be followed when voting on changes.
Staking Potential
SundaeSwap gives generous additional rewards to its stakers!
An early Cardano DEX project
SundaeSwap is new to the cryptocurrency space and has not reached the prime of its popularity. This only means that the value of SUNDAE can increase to a much higher value later in the future.
SundaeSwap Fundamental Analysis
The developers of SundaeSwap have a firm objective of establishing a ‘truly’ decentralized exchange. They aim to become the best-decentralized organization accessible and available to users for a suite of various financial products.
Developers designed SundaeSwap with the goal of complete decentralization. They gave all holders a vital role in the ecosystem. One of the primary regulations in the decentralization of SundaeSwap protocol is open access to financial services and all profits generated from them. The team behind this made it possible to share all generated profit with each and every member of that broad sphere.
SundaeSwap was also created with the hopes of reducing the expenses of large-volume traders. Thus, assistants, investors, etc., will settle meager trading fees for the SundaeSwap token. As a consequence, higher volume customers will be given incentives, leading to an overall higher profit for all liquidity providers.
The ecosystem itself attracts assets with a wide variety of unique services for empowering itself. It possesses a financial background and the support of widely accepted business partners like Runtime Verification and MLabs.
Rather than using an explicit function call, Cardano (ADA) used a new execution model and accounting famously known as eUTXO, or Extended Unspent Transaction Outputs. This new model discouraged the employment of global state and smart contracts.
Global tokens combine efforts with the minting policy to ensure asset pairs’ uniqueness and avoid diluting available liquidity. Every unique token gets locked in eUTXO along with liquidity in the pool through a validator script.
As long as appropriate liquidity is reached, the minting policy will allow the minting of tokens and burn all tracking tokens up until reasonable liquidity gets withdrawn. Regardless of how it will furnish an automated market maker by following the popular working model of Uniswap.
The stellar team behind SundaeSwap is making big efforts to secure upgrade mechanisms and to add several extensions to the protocol after finalizations. These are yet to be added to the whitepaper, though.
To those who seek to receive astronomical investment returns and opportunities to get rewards, SundaeSwap would be a great investment— not to mention that everyone have the privilege to make on-chain decisions for the ecosystem by the voting powers they hold.
