SundaeSwap

Decentralized exchange and automated liquidity provision protocol built on the Cardano blockchain.

SundaeSwap is a DEX which runs using an Automated Market Maker, AMM, algorithm, combined with Constant Product Liquidity Pools, which helps to minimize price slippage in lower liquidity pools.

SundaeSwap is currently being tested on the Alonzo testnets. Swap fees and the subsequent distribution of those fees are yet to be announced.

SundaeSwap were the first to design an Initial Stakepool Offering, ISO, but delayed it due to concerns within the community of the use of a 3rd party stake pool operator. It is to be rescheduled to coincide with the release of the exchange on the main net.

Industry

DeFi

DEX

Tags

AMM

Swaps

Yield Farming

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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.

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.

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