Cardano’s (ADA) Dex Sundaeswap Launches First On-Chain Governance Proposal

by | Mar 6, 2023 | Alt Coin, Altcoin News, DeFi, Market, Market News, News | 0 comments

A decentralised exchange (DEX) is a P2P marketplace that facilitates transactions between buyers and sellers of cryptocurrencies directly. Decentralized exchanges (DEXs) are preferable to centralised exchanges (CEXs) because users can keep control of their secret keys at all times. Because there is no central authority overseeing DEXs, they rely on smart contracts to automatically execute trades when certain criteria are met and to record those trades on the blockchain.

A growing subset of the technology platform market, these permissionless, secure transactions are paving the way for innovative new financial services. Alameda Research (established by FTX CEO Sam Bankman-Fried), a quantitative bitcoin trading firm and liquidity provider, and Double Peak Group (a “family office concentrating on ventures in the digital asset and chain sectors”) are among its backers.

A “native, scalable decentralised exchange and automatic liquidity provision system,” SundaeSwap is exactly what it sounds like. With ADAX, there is no order book; instead, we do away with middlemen, complexity, and laborious procedures altogether, giving our users unrestricted trading freedom without fear of censorship or losing possession of their assets.

The ADAX protocol is a fully decentralised, non-custodial, and automated liquidity solution for trading within the Cardano ecosystem. In contrast to a centralised exchange, users of decentralised exchanges need not hand over their private keys in order to have their orders recorded.

According to the Cardax group, “crypto exchanges typically deliver market values via an Order Book or Automatic Market Maker (AMM).” and “the AMM model works much better for sluggish pairs as long there is sufficient volatility around a price to fill a large market order,” whereas “the order book model works best with extremely liquid trading pairs.”

First Testnet Release of the Cardano Decentralized Exchange

According to reports, SundaeSwap is now the first fully working DEX on the Cardano testnet. The original transaction was shared by SundaeSwap’s chief technology officer, Matt Ho. The public testnet version of SundaeSwap, a DEX built on Cardano, is now available. To our knowledge, this is the first project to use Cardano payment systems to execute a token swap on the public testnet.

With Cardano’s launch in September, smart contracts quickly ran into a major technical obstacle due to the Alonzo hardfork. Then, Cardano developers started talking about issues with concurrency because of the e-UTXO paradigm employed by the blockchain. In a concurrent smart contract, many users can make changes at the same time.

Also Read: Cardano-Based Djed Stablecoin Draws 27M ADA Tokens As Reserve

One of the first DEX development teams, MinSwap, on the Cardano testnet failed to implement token swapping in September of this year. Soon after, other groups, like Minswap and SundaeSwap, acknowledged the need for scaling solutions for Cardano dApps as a means of reducing the negative effects of concurrent use.

SundaeSwap’s CEO, Mateen Motavaf, addressed this, saying the situation is under control. Moreover, Input Output Hong Kong, the parent business of the Cardano network, stated that the issue was caused by the “high Cardano network traffic.” After a lengthy beta period, SundaeSwap released its mainnet on January 20.

It is expected that the DEX will require people to trade, deposit, and lend coins on the platform at a minimal cost. After losing over $200 billion in value in less than 24 hours, the crypto market suffered a precipitous drop in the value of digital assets. During that time, the cost of an ADA token fell by more than 10%, to a low of $0.9.

Users complained that they were unable to make purchases on the site shortly after its release, as reported by multiple users. Congestion in the platform’s network was ultimately identified as the root reason of the breakdown, which was taken as a reflection of the high degree of interest the DEX has garnered in the Cardano community. Those who tried to make a trade on SundaeSwap were disappointed when their deals fell through.

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