Sundaeswáp
SundaeSwap is the first true AMM DEX built on Cardano. SundaeSwap is a native, scalable decentralized exchange and automated liquidity provision protocol.
Last updated
SundaeSwap is the first true AMM DEX built on Cardano. SundaeSwap is a native, scalable decentralized exchange and automated liquidity provision protocol.
Last updated
SundaeSwap is a robust platform, more than just a plain vanilla DEX. In ice cream terms, think of SundaeSwap as well… The sundae of ice cream. This is no boring vanilla cone or lame single scoop of strawberry in a cup. Instead, this sundae is complete with all the flavours, sauces, sprinkles, cherries, whip cream and everything an ice cream enthusiast could want.
The SundaeSwap team has even made it clear that they have some extra tricks up their sleeve and holding some cards close to the chest, which makes it sound like some exciting announcements are yet to be made. Enough with the ice cream metaphors; let's get into the current features of the DEX.
In case it wasn't already obvious, swapping assets is the heart and soul of a DEX. Users can use SundaeSwap to swap assets within the Cardano ecosystem.
Swapping is fairly straightforward and familiar to anyone who has used a DEX. Users simply choose the token they wish to swap and receive, enter the amount and hit swap. If the desired token is not found, users can search for a token using its name, symbol, or pasting its policy ID. Note that all swap fees are paid in Cardano's ADA token, so be sure to have some extra on hand.
One thing I like about SundaeSwap is the advanced slippage options that users can select and the dropdown menu that shows additional information such as estimated tokens received and minimum tokens received in the event of slippage so users can avoid nasty surprises. This helps combat issues that may arise with market congestion, delayed orders and slippage:
As with any good DeFi protocol, there is nothing sweeter than high APYs and passive income. The earning selection for SundaeSwap comes in a few different flavours such as.
Advantages:
Earn passive income from trading fees
Higher APY than simply staking ADA
Users can participate in yield farming with the LP tokens received by providing liquidity for extra rewards
Disadvantages:
Users need to provide 2 assets to make a liquidity pair, not just ADA
Risk of impermanent loss
Funds are held in a smart contract and not a user’s wallet, opening up risk exposure to smart contract hacks, bugs, and failures
Providing liquidity is the first step to yield farming, but this can also be done as a stand-alone activity. When users provide liquidity, they get back an LP token. This token represents the liquidity provided by the user, and users can then stake this LP token by yield farming for extra rewards. By providing liquidity, liquidity providers (LPs) earn a share of the trading fees processed through a particular liquidity pair.
Depositing Liquidity:
To deposit liquidity, users will need to navigate to the “home” tab via the navigation panel on the left.
