The Cardano ecosystem is flourishing since there are hundreds of new DeFi projects, NFTs, and applications that are going to be deployed on the blockchain. The race is hotter than ever after the Cardano mainnet release.
SundaeSwap is named after an ice cream dessert sundae that follows the food trend in the crypto world like PancakeSwap, SushiSwap, etc. At the same time, SundaeSwap means to be the Uniswap of Cardano.
An AMM Project on Cardano received this thunder of traction from the community. After the mainnet news of SundaeSwap, the ADA price went up 50% in just one week since the demand increased to stake ADA on SundaeSwap.
The article below will provide all detailed information about SundaeSwap, including:
- What is SundaeSwap? How does it work?
- What is SundaeSwap Token (SUNDAE)? All detailed information about its Tokenomics.
- How to get and buy SUNDAE tokens?
- Roadmap and updates.
- Details about the team, investors, and partners.
- Is SundaeSwap a good investment?
Let's explore the potential of SundaeSwap!
What is SundaeSwap?
SundaeSwap is an AMM (Automated Market Maker) decentralized exchange running on Cardano that allows everyone to trade, stake, and lend tokens on the platform. Traders have to pay little fees while liquidity providers can earn a return on their deposits. The vision of SundaeSwap is to be the lead DEX player on Cardano, which is like Uniswap of Cardano.
How does SundaeSwap work?
Like Uniswap, the primary product of SundaeSwap is a DEX using an AMM (Automated Market Maker) mechanism with a constant product like Uniswap V2 (cited in the whitepaper).
Since Cardano uses the eUTXOs (Extended Unspent Transactions Outputs) model, the implementation of AMM on Cardano is slightly different. The developer team has to do more work to build the platform with Plutus/Haskell than other similar projects using the Solidity programming language.
After the mainnet launch, SundaeSwap allows users to create or deposit their Cardano Native Tokens on the protocol to enhance the liquidity while earning small fractions of rewards from trading fees.
Notably, there are 4 pools designed to be in the ISPO program: SUNDAE/ADA, LQ/ADA, WMT/ADA, MELD/ADA. This means users need to provide liquidity in one of 4 pools to earn SUNDAE tokens from the ISPO. However, the program ended quite soon, it lasted for 5 epochs (25 days) starting from Jan 20th, 2022.
What is SundaeSwap Token (SUNDAE)?
As the documentation says, SUNDAE is the native token of SundaeSwap for utility uses. The tokens will be distributed via the ISO program. In our view, SUNDAE will have fundamental use cases such as staking, governance and even can be used to pay for trading fees.
Detailed information about SUNDAE Token
SUNDAE Key Metrics
- Token Name: SUNDAE.
- Ticker: SUNDAE.
- Blockchain: Cardano.
- Token Standard: Updating...
- Contract: Updating...
- Token Type: Utility and Governance.
- Max Supply: 2,000,000,000 SUNDAE.
- Circulating Supply: Updating...
SUNDAE Token Allocation
The SUNDAE Token has the total max supply of 2,000,000,000 tokens distributed as follows:
- Public: 55% (1,100,000,000 tokens).
- Team: 25% (500,000,000 tokens).
- Investors: 13% (260,000,000 tokens).
- Future Hires: 5% (100,000,000 tokens).
- Advisors: 2% (40,000,000 tokens).
SUNDAE Token Sale
Like MinSwap, SundaeSwap uses a fair launch mechanism (aka. ISO - Initial Stake Offering) for its token distribution. This means users will receive SUNDAE tokens when staking into ADA pools. The project will have funds for development, which will come from the staking rewards in ADA pools acting as blockchain validators.
5% of the total SUNDAE supply will be distributed via this method to staking participants throughout 5 epochs (1% for each). The ISO program will last for 25 days (5 days per epoch). The SundaeSwap team will announce the starting date later (estimated in Q4 2021).
It’s different from the IDO and the old-fashioned ICO since it emits tokens directly to its platform users. Basically, users receive token airdrops instead of ADA rewards when staking in pools.
SUNDAE Token Release Schedule
- Team: 25% (500,000,000 SUNDAE) will be monthly vested for 4 years.
- Advisors: 2% (40,000,000 SUNDAE) will be monthly vested for 2 years.
- Investors: 13% (260,000,000 SUNDAE )will be monthly vested for 2 years.
SUNDAE Token Use Case
SUNDAE is the utility and governance token of the SundaeSwap platform and it has functions, including:
- Governance: Governance rights will be granted to SUNDAE token holders once the voting mechanism is available. They can decide the future of the protocol together while still having to follow the law when voting on changes and updates.
- Profit-Sharing: SUNDAE token holders will receive a portion of platform revenues, depending on the number of tokens they own.
- Fee Discounts: To incentivize traders to boost the trading volume, SUNDAE tokens are used to reduce the fee rate.
How to get SUNDAE Token
Investors can participate in the ISPO/Liquidity Mining program to earn SUNDAE tokens. Alternatively, users can swap ADA for SUNDAE on SundaeSwap.
How to buy SUNDAE tokens
Roadmap & Updates
SundaeSwap hasn’t released any specific roadmap, but they release a weekly update report that includes the following information:
- The role of the SUNDAE token.
- A mechanism to increase throughput dramatically.
- A mechanism to provide concentrated liquidity for more efficient market leverage.
- A mechanism to provide secondary derivative markets.
- A mechanism to further decentralize the role of the liquidity pool.
Team, Investors, and Partners
In the advisory board of SundaeSwap, Dewayne Cameron (DC) is the most popular advisor since he’s the co-founder of two DeFi projects on Cardano. The first one is Indigo Protocol - a synthetic asset protocol and the second one is Liqwid Finance - a lending platform on Cardano.
SundaeSwap raised $1.3M in the seed round led by Alameda Research along with cFund and Double Peak Group. Notably, Alameda Research and FTX were founded by Sam Bankman-Fried who is the second richest billionaire in crypto. Read more about Alameda Research.
Runtime Verification and Mlabs are SundaeSwap’s partners. They help the SundaeSwap platform to integrate with other projects inside the Cardano ecosystem.
Is SundaeSwap (SUNDAE) a good investment?
Like other projects on Cardano, SundaeSwap is a new project being in the development process. Therefore, everything is still on paper and the team needs time to assemble everything.
Referring to technologies, SundaeSwap is somewhat like a Uniswap v2 fork that is built on Cardano. This is not a competitive aspect of SundaeSwap, but Uniswap v2 is a very successful model ⇒ for a new ecosystem like Cardano, the fastest project that will achieve certain success.
SundaeSwap is backed by Alameda Research and cFund. This means Alameda is adding more Cardano-based projects to its portfolio. Alameda Research is famous for investing in Solana-based DeFi projects in the crypto world such as Coin98 Wallet, Serum, Oxygen, etc.
SundaeSwap has a hugely supportive community. With over 293k followers on Twitter, it is now the project on Cardano that is gaining the most traction from the community.
The SundaeSwap platform is built on the Cardano blockchain. Therefore, it inherits the advantages of the blockchain, such as low Tx fees and high transaction speed. At the moment, a swap on SundaeSwap often needs a few seconds to complete. And the speed is expected to get improved since Cardano applies its scaling solutions.
However, smart contracts on Cardano released in Sep 2021 are written in Haskell and Plutus programming languages. The languages themselves are different from the programming language Solidity. Therefore, the development processes of projects are dependent on the Cardano infrastructure.
After mainnet, SundaeSwap's TVL skyrocketed, leading the entire ecosystem. It's fair to say SundaeSwap is going to take up a huge piece of DeFi cake on Cardano. And the $100M TVL of the DEX is far too small when compared to the market cap of $ADA. In the future, SundaeSwap will adopt more Cardano Native Tokens, giving SundaeSwap's users seamless experiences.
Investing in top DEXs means that your investment will be more secure than investing in new protocols. And as usual, whether it is worth investing or not, Do Your Own Research before buying and be responsible for your investment.
On Cardano, there is a DEX race since multiple projects have released their plans to be the first decentralized exchange in the Cardano ecosystem. However, in the race, there are always losers, so be responsible for your investment.
There are other similar big AMM DEXs on other blockchains such as Uniswap, RaydiumSwap, PancakeSwap, etc.
SundaeSwap is the best candidate to be the winner DEX on Cardano, as evidenced by the Twitter followers and the TVL on Cardano. The room for the DEX is still big inside the Cardano ecosystem and the team has lots of things to polish the user experience. The ultimate goal is to become Uniswap of Cardano.
That is all you need to know about SundaeSwap and its SUNDAE token. I hope you’ve gained helpful insights to understand the potential behind SundaeSwap.
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