SundaeSwap launches On Mainnet
After 6 weeks on the testnet, SundaeSwap has finally launched on the mainnet. To swap tokens or yield farm sundae on SundaeSwap, you need first to link your Cardano wallet.
Wallets SundaeSwap supports
SundaeSwap supports the following browser wallets:
- Nami Wallet
- Eternl (previously ccvault)
- Gero wallet
- Flint wallet
- Card wallet
Hardware wallets are not currently supported on SundaeSwap. Browser extensions for the supported wallets are recommended.
All popular Cardano tokens e.g LQ, SUNDAE, ADAX, MILK, VYFI, DRIP, DANA e.t.c have are immediately tradable on the DEX.
SundaeSwap UI feels clean, uncluttered and professional. Once the current congestion on Cardano network clears up, the trading activity should feel like a breeze.
Like the team behind the DEX announced late last week, SundaeSwap launched with a Beta Mainnet label attached to its UI.
Congestion during SundaeSwap's launch
Since it launch, the many users have had to wait for hours for their orders to go through. The long wait is caused by two factors:
The Cardano network is under heavy load, hence the DEX scoopers cannot process the all the orders quickly.
Like the Sundaeswap team earlier announced prior to the launch, the DEX has seen a large volume of orders in its first days. These number of orders should stabilise over time, as users who are just testing the platform subside; leaving actual demand.
Like UniSwap, SundaeSwap can only successfully complete orders that are within a given slippage range.
Prices of tokens on the DEX are constantly changing. This means that some orders that are currently waiting in queue to be processed might never be fullfilled. If the users who placed such orders don't realize that their orders are now beyond the slippage tolerance, then such orders will remain in queue adding onto the networks congestion.
The solution in such a situation is for the user to cancel such an order and place a new one.
For context, when the DEX first launched, the price of SUNDAE token was around 0.1 ADA per SUNDAE. That price has now rallied to 0.881 ADA per SUNDAE. Obviously, someone who placed a swap when the price was near 0.2 ADA would have their order stuck in limbo unless they cancel.
The sundaeswap team has been busy addressing these and other concerns. On Saturday, they updated the orders' tab UI so that users can easily tell if their orders are within or outside the slippage tolerance.
Other than swapping tokens, users can now start yield farming SUNDAE tokens. To do that, the user need LP tokens first. The entire process is well documented here by the SundaeSwap team.
People have been wondering if their LP tokens will automatically compound after harvesting Sundae tokens. The SundaeSwap team confirmed that those rewards wouldn't compound.
There is no auto-compounding! When you harvest your rewards you need to restake and start a new yield farming position. If you would like to take advantage of the compounding effect, you can take your SUNDAE rewards, deposit as liquidity, and start a new farming position. ~ SundaeSWap Labs
According to Defi Lama, the total value locked of ADA on SundaeSwap doubled between Friday and Saturday. Going by this metric alone, there is no denying that SundaeSwap is living up to its hype.
Cardano users can buy $SUNDAE tokens on the SundaeSwap or MuesliSwap DEXs.
Sundaeswap yield farms
|SUNDAE farming pools||Farming APR|
Before participating in the yield farming on SundaeSwap, use this resource to learn about the following aspects:
- How yield farming will work on SundaeSwap
- What pools are eligible to farm SUNDAE
- risks and rewards involved while farming SUNDAE
SundaeSwap announces its governance strategy
The SundaeSwap team has been busy 1/ improving its DEX and 2/ nudging Cardano into further decentralization. We shall focus on the second aspect.
1/ The just concluded SundaeSwap's reverse ISO helped improve Cardano's Multiple Attack Vector (MAV) from 22 to 29. Many Single Operator Pools that were struggling to attract delegators onboarded enough stake via the initiative.
2/ Just today, SundaeSwap's team announced their first steps towards introducing governance to the SundaeSwap community.
Here are the key takeaways from their announcement.
On-chain governance via SundaeSwap smart contracts is not currently possible.
This functionality will become possible after most Cardano scaling proposals are integrated into the main chain. Such upgrades, include Plutus scripts upgrades and Smart contacts memory parameter bumps.
It will be interesting also to see what proposals will come out of Cardano's Voltaire Phase; which is specifically about governance.
SundaeSwap Team will add 'SUNDAE DAO' category on their discord. Via this channel, the SundaeSwap community members will discuss governance proposals. Some of these proposals may require an informal staked community vote.
Introduction of SundaeSwap governance Discourse forum This forum will be used for 1/ general DAO discussions 2/ voting on proposals and 'temperature' checks.
Temperature checks will consist of proposals that would need significant protocol upgrades.
Already there are two proposals, one by Aada Finance and another by Clap Pool. Both teams want to provide liquidity incentives to their respective pools by providing 1% of their total tokens' supply to yield farmers. If both proposals were accepted, that would raise the yield farming pools on SundaeSwap from the current 3 to 5.
These measures are temporary in nature and will serve as placeholder / interim techniques. During and after Cardano's Basho era the chain will evolve to natively support more governance features. In fact, the Cardano is designed with governance in mind and only requires protocol upgrades to add more robust features.
LiqWid Finance follows
Update: On march 1st, Liqwid finance announced 'Liqwid DAO Interim Governance' that seems to follow SundaeSwap's lead. Please LiqWiq's full announcement here.
SundaeSwap too and other Cardano dApps such as MELD, MinSwap, VyFi, LiqWid Finance, AADA Finance, DripDropzs e.t.c will likely evolve to accommodate their own forms of governance. While at the same time being congruent with whatever governance features Cardano's Voltaire will bring.
First published on Jan 20, 2022