“While still in its early stages, Sundaeswap’s debut as a pioneer DEX in the DeFi ecosystem launched by Cardano is a game-changer for crypto users looking to exchange tokens in a more scalable smart contract ecosystem By."
01Project name
Sundaeswap
02Project track
DeFi, DEX
03Project Introduction
SundaeSwap is the DEX of the Cardano network, offering native tokens and ADA trading to anyone. Thanks to its protocol, you will be able to exchange, stake, lend, and more in a truly decentralized way!
Cardano's market value ranks fourth in the public chain rankings, second only to BNB and slightly higher than SOL. With the launch of Cardano smart contracts, it will also become one of the most competitive decentralized ecosystems. The Cardano ecosystem has covered many sectors including DEX, lending, synthetic assets, decentralized insurance, derivatives market, and infrastructure.
In the DEX sector, there are currently 20 DEX products that are known to be ready to go online. SundaeSwap is a DEX completely native to Cardano, and it is also the most popular product.
SundaeSwap is currently planned to be in Cardano's DEX sector, with the most followers on social platforms, with more than 270,000 followers on Twitter and more than 100,000 users on Discord. SundaeSwap is also one of the earliest DEXs launched by Cardano and has official support, which means that SundaeSwap may have extremely high liquidity.
04Project positioning
The exchange operates similarly to other DEXs, the only difference is that its infrastructure utilizes Cardano’s UTXO model.
Based on the technical characteristics of Cardano eUTXO, a different innovative DEX solution is proposed to take into account the problems of concurrency and parallelism. Market participants can place orders up to and including cancellation on the blockchain. These do not need to interact with any pre-existing entities and thus do not suffer from the UTXO contention issues found in other protocol designs. Using a programmable API, these orders can be customized according to the needs of market participants. However, unlike pure order books, liquidity pools can rely on orderly and efficient swap execution supported by automated market makers.
While still in its early stages, Sundaeswap's debut as a pioneer DEX in the DeFi ecosystem launched by Cardano is a game-changer for crypto users looking to exchange tokens in a more scalable smart contract ecosystem .
05Project advantages
Contrary to the relative simplicity of technical development, SundaeSwap's work in project commercial development is the most successful among all DEXs, and a relatively complete ecosystem has been built. At present, SundaeSwap has reached cooperation with CardStarter, the earliest IDO platform on Cardano, Indigo Protocol, an algorithmic synthetic asset protocol, and Liqwid, a lending protocol.
SundaeSwap partners with CardStarter (Source: https://sundaeswap-finance.medium.com)
CardStarter is the first and largest IDO platform on Cardano and currently has $67M locked up. CardStarter needed a DEX in their strategic development to trade their new tokens, and they chose SundaeSwap for now. And CardStarter promises to provide full liquidity to SundaeSwap DEX after it goes live.
Indigo Protocol is a Cardano-based algorithmic synthetic asset protocol that allows the creation of synthetic assets that track the price of real-world assets. SundaeSwap DEX will be integrated into Indigo's web page and APP, allowing customers to trade corresponding synthetic assets. Liqwid is a Cardano-based algorithm and a non-custodial lending protocol that builds a decentralized marketplace for lenders and borrowers. SundaeSwap DEX will provide a fund pool of ADA and Liqwid's native token LQ and interest-earning token qToken, and Liqwid will provide additional liquidity to the SundaeSwap platform. With the cooperation of these Defi projects, SundaeSwap DEX is expected to become the DEX with the largest lock-up volume at the initial stage of Cardano's launch.
06Team Information
The information of 8 core members and 2 advisors is published on its website. The two co-founders of the project, Artem and Mateen, are both students at Boston University, majoring in business analysis and human physiology, respectively, and have no experience in cryptocurrency project development. But apart from the two founders, the other members have enough experience in software development, cryptocurrency field development and business expansion. Therefore, the technical development and business expansion capabilities of the entire team seem to be good, but the founder's ability and sustainability of operating projects still need to be tested.
07Token Economy
economic model
SundaeSwap has only one token: $SUNDAE. Currently, only the governance function has been announced. The team provides users with a complete on-chain experience. Users who participate in the construction of the protocol through governance voting will be rewarded. In the future, there will be functions such as pledge profit sharing and reducing bulk transaction fees, but there are not many details.
Token distribution
The SundaeSwap token is SUNDAE, with a total supply of 2 billion tokens, 55% of which will be publicly issued and 25% owned by the team. The project party has not yet determined the specific use of the tokens. It is worth noting that the percentage of tokens issued to the team (25%) is at a relatively high level.
TGE time
At the launch of the DEX, the ISO will begin and SundaeSwap tokens will be available to users using the SundaeSwap DEX protocol. 5% of the total token supply is distributed through ISO, and users can also earn additional SUNDAE as a reward by providing liquidity to any XX/SUNDAE pair at launch. Later, users will be able to earn more SUNDAE rewards through yield farming, fee sharing programs, and other features we expect to be introduced to the DEX.
Allocated team, investor and advisor tokens will be released on a 4-year (team) or 2-year (investor/advisor) schedule, with tokens issued on a monthly pro rata basis.
SundaeSwap adopts the innovative financing mechanism of Initial Stake Pool Offering (ISO) at the initial stage of the project's launch. In the ISO mechanism, users pledge ADA into the SundaeSwapstake pool, and will receive SUNDAE token rewards according to the amount of pledged ADA (the principal of ADA remains unchanged). Through ISO, users can be among the first to hold SUNDAE. Within five cycles (approximately 25 days), the protocol will issue 1% of the total SUNDAE tokens to the SundaeSwap stake pool. In order to prevent giant whales from entering the capital pool to grab most of the token rewards, ISO has also adopted a model of diminishing returns for SUNDAE rewards.
08 Financing Information
Earlier this month, SundaeSwap Labs also announced the completion of a $1.3 million seed round, led by cFund, a development fund jointly established by Cardano development company IOHK and crypto asset management company Wave Financial, with participation from Alameda Research and Double Peak Group.
09 Project Summary
At present, SundaeSwap can be said to be the most concerned DEX project on the Cardano platform. The number of followers on various social platforms is also far ahead, and the project has formed a good ecosystem, which is a good IDO platform, lending platform and synthetic asset platform developed on Cardano. Reaching a cooperation will help the rapid accumulation of TVL after the project is launched.
But on the other hand, since the founders have no experience in technology development, it is uncertain whether the future technology upgrade will be smooth. The two founders are also currently students, and the ability to operate the project and interest in continuing operations will become risk points. In addition, legal issues in the form of ISO should also be noted, the project company is registered in the United States, ISO has been delayed for some legal reasons before, not sure if the team has dealt with this issue.
10 Project Links
Sundaeswap Web: https://sundaeswap.finance/
Twitter: https://twitter.com/SundaeSwap
Reddit: https://www.reddit.com/r/SundaeSwap/
Discord: https://discord.com/invite/Sundae
Medium: https://sundaeswap-finance.medium.com/
*The above analysis is for reference only and does not constitute investment advice!
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