MilkySwap

A DEX on the EVM compatible Milkomeda sidechain. Enabling users to trade their ADA for tokens from the Ethereum blockchain.

The MilkySwap DEX, on the Milkomeda sidechain, is an Automated Market Maker, AMM, style DEX that allows liquidity providers to stake their LP tokens to earn the platform's MILKY token. These can then be locked to earn the platform's governance token, CREAMY.

Milkomeda and MilkADA - MilkySwap and MILKY Token

MilkySwap is on the Milkomeda sidechain, who’s base asset is MilkADA. MilkADA should not be confused for MilkySwaps token MILKY.

MilkADA is required for paying fees and gas on the Milkomeda sidechain. There is a well laid out walk through on how to mint MilkADA in the MilkySwap’s Gitbook documentation.

The MILKY token is earned by Liquidity Providers when they stake their LP tokens to the protocol.

The only wallet compatible with Milkomeda is MetaMask. dcSpark are working on adding EVM support to their Flint wallet, allowing users to do everything on the Milkomeda sidechain from one wallet.

Adjustable Transaction Parameters

Transaction parameters i.e. slippage and the time given for the transaction to complete, are preset but can be adjusted by the user if they wish. There is also an “Expert Mode” that can be toggled, allowing users to set a higher slippage for their trades and also allowing them to select a recipient of the trade other than themselves (the swapper).

Fees

There is a 0.3% transaction fee each trade performed on the DEX.

Providing Liquidity, Farming, and Locking

Users can provide liquidity to specific pair on the protocol by depositing their tokens to the protocol. In return they receive LP tokens that represent their ownership stake of that liqudity pool. These tokens can be redeemed at anytime for the initial liquidity that the liquidity provider contributed, along with the fees that they have earned in the time that their liquidity was in the protocol.

LPs receive 0.25% (83%) of the fees from all trades associated with their pool. It is not stated where the other 0.05% of fees goes.

Farming

LP tokens can be staked to earn MILKY tokens. There are no fees for staking or withdrawing LP tokens from the staking mechanism, besides the gas fees associated with these transactions. MILKY tokens can be harvested at any time.

Locking

MLIKY tokens can be locked for a fixed amount of time (between 1 week and 4 years). This is done on the “Churn” page of the website. In return for locking their tokens the user will receives the platform’s governance token, CREAMY.

Users have to pay the associated gas fees for locking and unlocking their tokens.

Team

The MilkySwap team is completely anonymous. They say they’ve been developing in DeFi for a long time however they do not back this statement up with any concrete evidence.

Industry

DeFi

DEX

Tags

Cross-chain

AMM

Yield Farming

Token Staking

Milkomeda Ecosystem

Author

builtoncardano

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Links

Project Website

Glossary

DEX

Here is a Cardano DEX list for you to explore all the decentralized exchanges built on Cardano. There are multiple Cardano DEX projects for you to choose from, each with a different take on the DEX concept and the way of managing a decentralized exchange protocol.

Listed here are Cardano DEX projects that are based on both the automated market maker (AMM) and the traditional order book style of exchange. Both types of DEX on Cardano, like any other exchange, require a good amount of liquidity to operate effectively. This leads many to say that the best Cardano DEX is the one with the most liquidity. However, there are many other factors that the users of these DEXes would tell you to take into account before deciding which is the best Cardano DEX, and which one you should interact with (although a high amount of liquidity is a good indicator for users).

Interestingly, many Cardano exchanges, such as Sundaeswap, use the concept of “batchers” to collect, order, and execute transactions. This reliance on a small group of batchers to order and execute user transactions reduces the decentralized nature these exchanges as these entities could easily collude to front run transactions from particular wallets or to censor transactions from other wallets.

DeFi

Here are all the Cardano DeFi projects complete with descriptions and tags. If you’re looking for a Cardano DeFi exchange, a lending protocol, a launchpad, a Cardano stablecoin, or platforms on which to tokenize real world assets then you’ve come to the right place. The Cardano DeFi ecosystem is maturing and, as it does, we will continue to list the new Cardano DeFi projects here. If you look at Cardano in 5 years this list will be substantially different, some projects will have left it, but many many more will have been added.

If you’re looking to simply swap Cardano native tokens then a Cardano DEX is your best choice. If you’re looking to utilize your crypto holdings for a loan then take a look at all the Cardano lending and borrowing platforms on offer and choose which one fits your needs. There is much more utility in the Cardano DeFi world and we invite you to explore it here!

AMM

AMM stands for Automated Market Maker. This is an algorithm, often supplemented by oracles, that facilitates the pricing and exchange of assets between users. Assets are exchanged at market value through liquidity pools. These pools are created by Liquidity providers, LPs, who deposit assets to the exchange in pairs. This “asset pair” then allows users to swap one asset for the other through the liquidity pool. Fees are paid to the LPs who provided the liquidity. The more liquidity a pair has the less “slippage” a user experiences, meaning the less likely the user is to experience a price change in their trade.

Milkomeda and MilkADA - MilkySwap and MILKY Token

Adjustable Transaction Parameters

Providing Liquidity, Farming, and Locking

Farming

Locking

Team

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