SundaeSwap, which calls itself “the sweetest decentralized exchange on Cardano”, has gone live on Cardano’s public testnet, which seems to have helped $ADA’s price surge 12% in the past 24-hour period.
What I SundaeSwap ($SUNDAE)?
SundaeSwap is “a native, scalable decentralized exchange and automated liquidity provision protocol”.
It is backed by cFund (“an early-stage sector agnostic venture firm in the Blockchain industry anchored by IOHK and managed by Wave Financial”); Alameda Research (the quantitative cryptocurrency trading firm and liquidity provider founded by FTX CEO Sam Bankman-Fried); and Double Peak Group (“a family office focused on investments in the digital asset and blockchain space”).
Here is why the SundaeSwap team decided to build a DEX on Cardano:
“… in simple terms Cardano is faster and cheaper than the alternative smart contract platforms. It also is run by a non-profit foundation and regularly collaborates with high profile academic institutions. All in all it is more advanced and a better option for future projects to be built upon.“
SundaeSwap’s Testnet Launch
On December 1, it was announced that SundaeSwap would launch on Cardanos testnet on Sunday (December 5):
The next day, Input Output (aka “IOHK”, aka “IOG”), the blockchain technology company responsible for Cardano’s R&D, confirmed that they are collaborating with SundaeSwap Labs on the SundaeSwap testnet launch with the shared goal of testing “the network parameters and the user experience” before the mainnet launch.
Then, on Sunday (December 5), the team said they were looking forward for people to start using SundaeSwap on the public testnet later that day:
And IOG explained why they were so excited about the upcoming launch of SundaeSwap on the public testnet:
They went on to say:
- “The test is intended to put the network under high throughput so we can monitor and analyse the current network parameter settings. As a user, expect congestion on the testnet. This will be a sign that we are getting the traffic volume we want/need to properly assess!“
- “And expect bugs in the DEX. The @sundaeswap team is encouraging you to find some. Remember this is early #DApp software, and it’s still early days for #DeFi on #Cardano. Testnets are a key part of iterating & improving the experience.“
- “Both the IOG and @SundaeSwap teams want your feedback on the DEX experience, so we can iterate and improve it in good time for the full mainnet launch.“
Sadly, the testnet launch had to get postponed to a showstopper bug:
Fortunately, this bug quickly got fixed, and a few hours later, the SundaeSwap team announced that they had gone live on Cardano’s public testnet, which prompted a seemingly delighted Charles Hoskinson (Co-Founder and CEO of IOG) to invite members of the Cardano community to “go get some ice cream.”
$ADA’s Price Action
According to data by TradingView, on crypto exchange Kraken, minutes before SundaeSwap’s launch took place, $ADA was trading around $1.2883. Currently (as of 10:15 a.m. UTC on December 7), $ADA is trading around $1.4546, up nearly 12% in the past 24-hour period.
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Photo by “bennimax” via Pixabay