SundaeSwap
Cardano network at record capacity due to SundaeSwap launch, but not all users hail it as a success
"This has been a huge disappointment. I've tried 20 times minimum to swap ADA for Sundae and nothing has gone through," says a disgruntled SundaeSwap user.
According to both Cardano Blockchain Insight and pool.pm, the Cardano (ADA) network has maintained record capacity for nearly two weeks due to the launch of decentralized exchange, or DEX, SundaeSwap, the first of its kind to go live on Cardano. At the same time, the total value locked for the ADA blockchain reached a record of approximately $80 million, despite the recent fall in the token's price from the ongoing down market.
The current average blockchain load of the network hovers at 93.19%, which means that 93.19% of its blocks are being filled. In context, the metric amounted to only 32.49% on New Year's Eve. The number of ADA wallets is also on the verge of breaking the 3 million mark.
Many ADA enthusiasts took to social media to celebrate the milestones. However, the phenomenon of the network nearing full capacity due to the addition of just one DEX raised questions about its utility, although scaling solutions are coming soon. Reddit user Additional_Till_838 pointed out:
"I dislike this because it paints a picture of Cardano's blockchain being overloaded and struggling to handle the load. This could scare investors away from Cardano and make them think that it is not a reliable blockchain network."
Not all went smooth during SundaeSwap's launch either. Soon, user reports of failing transactions began circulating widely on social media. At the time of publication, users are still alleging that their DEX orders remain unprocessed, despite submitting them a few days ago. More critically, the platform is locked in a publicized commercial dispute regarding allegations of failed investor promises with Cardano accelerator program CardStarter. Even Charles Hoskinson joined in on the debacle, telling the two parties to "get your shit together!" and settle their differences via arbitration or litigation.
We have just released an update to our orders page, you should now be able to see the approximate queue depth of a pool! Simply click to expand an order for more info.
— SundaeSwap Labs (@SundaeSwap) January 26, 2022
This update should provide additional info on the current state of congestion. ⌛️ 1/2
Cardano projects SundaeSwap and CardStarter squabble over failed promises to investors
''Get your shit together!" said Cardano founder Hoskinson to developers behind the two projects.
The ongoing drama between two projects built on the Cardano (ADA) blockchain escalated across multiple social media platforms Monday, much to the dismay of the ADA community.
The issues began in April when accelerator program CardStarter announced it would launch its own decentralized exchange or DEX. Shortly thereafter, its founders incentivized investors to provide liquidity for the project on Uniswap in exchange for native CSWAP tokens. The platform's developers landed an agreement with a third-party DEX called SundaeSwap sometime later, marketing the deal as a "merger" last June. As per the agreement, CardStarter would no longer develop its promised DEX, and would instead provide liquidity to the existing SundaeSwap DEX.
As told by Reddit user "Environmental-Law768", investors were later promised "great benefits" during a YouTube ask-me-anything session for CSWAP holders in the SundaeSwap DEX. Last week, however, it was revealed that these so-called benefits would simply be a conversion from CSWAP to CardStarter's native CARDS tokens ($3.14 at time of writing), at a rate of 400:1. Holders who had locked in $15M (at the time of reveal) worth of liquidity on the platform seemed to feel this was a slap in the face, amounting to no meaningful reward for their efforts. Allegations of a rug pull soon followed.
Both SundaeSwap and CardStarter took to social media to place blame over the investor fallout on each other — much to the disapproval of ADA enthusiasts and Cardano founder Charles Hoskinson.
In light of SundaeSwap's announcement, we share the following documents which we feel speak for themselves.
— CardStarter (@CardStarter) January 24, 2022
We will continue to fight for the CSWAP community. pic.twitter.com/6oM2rdcKYF
According to a SundaeSwap statement cited by Hoskinson, the June deal was purely a marketing and collaboration agreement. However, the SundaeSwap team acknowledged using misguided terms on multiple occasions when communicating with users. To make matters worse, the freshly launched SundaeSwap DEX has already suffered from numerous user reports of failed transactions.
During a YouTube stream Monday afternoon, Cardano founder Hoskinson condemned the heated exchanges between the parties. Hoskinson elaborated it was unacceptable for the fiduciary organizations involved, SundaeSwap and CardStarter, to use Twitter, Reddit, Telegram, and other channels in social media to make their case. "It's despicable. It doesn't do anything other than try to abdicate your personal responsibility and damage the brand of the ecosystem as a whole," said Hoskinson, continuing:
Please, people, get your shit together. Both sides come together, agree to arbitration, talk to each other, and figure out whatever the hell you agree to get done. And if you can't somehow survive the arbitration process, the courts are always available to you.
SundaeSwap launches on Cardano but users report failing transactions
The first DEX on Cardano launched on the mainnet today to allow traders to perform swaps and add liquidity, but network congestion has slowed transactions processing.
Cardano’s first decentralized app (DApp) SundaeSwap has launched but is causing a frustration among users due to congestion, platform errors and failed transactions.
Is it just a case of expected teething troubles under an influx of excited users or is there more to it?
SundaeSwap is a decentralized exchange (DEX) and token staking platform. It’s mainnet launch today marks a milestone in the Cardano (ADA) ecosystem by being the first DApp of to utilize its smart contracts.
The ADA price climbed 50% over the past week leading up to the launch of SundaeSwap, meaning a successful launch is a high stakes game for Cardano.
Trading on the DEX started at 9:45pm UTC on Jan. 20. It took less than two minutes for users on the project’s Discord server to begin complaining about failed transactions and network congestion.
Swapping is now LIVE!
— SundaeSwap Labs (@SundaeSwap) January 20, 2022
Head on over to https://t.co/GSGzSuqIcf and swap tokens, deposit liquidity, and enjoy! $SUNDAE Token Policy ID: 9a9693a9a37912a5097918f97918d15240c92ab729a0b7c4aa144d77#Cardano #SundaeSwap pic.twitter.com/jhLK6F8PuJ
By 10:07pm UTC, SundaeSwap CEO Mateen Motavaf posted a message in bold font and all caps trying to address the volume of complaints in the server:
“IF YOUR ORDER IS ON-CHAIN, IT WILL BE PROCESSED ORDERS ARE FAILING DUE TO CONGESTION, PLEASE BE PATIENT”.
The SundaeSwap team hosted a Twitter Spaces AMA at about 1am UTC to further address any issues that traders were having with the platform. In light of the tremendous backlog of orders holding up swaps, or ‘scoops’ as they’re called on SundaeSwap, one user asked what the expected effect of an upcoming Cardano node upgrade would have. Chief Technical Officer Matt Ho answered:
“Once the change happens on the 25th, we expect greater than a 2X throughput increase from strictly the memory bump by itself as additional protocol parameters become available.”
Another user noticed that an order was filled on the DEX before it was launched on the website. A tech-savvy trader can bypass the website user interface and execute trades directly on the underlying smart contracts for any DEX.
Ho responded that: “There were so many things to deal with, we didn't believe maybe, to our naivete, that someone would have constructed a transaction by hand ahead of time.”
By 2:40am UTC, users were still complaining of failed transactions and orders pending for over four hours. CIO Pi Lanningham responded on Discord: “Orders will continue to be processed (currently around 2500 orders per hour; currently ~11k orders on chain, ~1600 of them within slippage tolerance).”
The SundaeSwap team has not yet responded to Cointelegraph’s request for further comment.
The core team of the project expected a large backlog of orders ahead of the launch based on the performance of the testnet about one month ago. In a Jan. 8 blog post, the team wrote:
“We want to inform you all that while orders may take days to process, everybody’s orders will be processed fairly and in the order they were received.”
Related: Cardano goes ‘full send’ with a 50% ADA rally ahead of SundaeSwap launch
By using the performance of the SundaeSwap platform from a previous test phase, the team acknowledged the possibility of poor performance at first, but said “we’re very confident that the protocol can meet the normal day-to-day load once things settle down.”
The Cardano blockchain introduced smart contracts to the platform following the Alonzo hard fork last September. Within one week, over 2,000 smart contracts were deployed on the blockchain with a timelock without becoming operational.
Cardano Launches First Decentralized Exchange Built on ADA, Triggering Price Spike
Cardano (ADA) is surging after launching the first-ever decentralized exchange (DEX) built on the smart contract platform. According to a statement made by the SundaeSwap (SUNDAE) team, the fully functional beta version of the DEX premiered today on Cardano. Its launch boosted Cardano from its day-low of $1.32 to $1.42, a 7.5% increase. The fifth-largest […]
The post Cardano Launches First Decentralized Exchange Built on ADA, Triggering Price Spike appeared first on The Daily Hodl.
Cardano goes ‘full send’ with a 50% ADA rally ahead of SundaeSwap launch
ADA bulls cranked the price higher as excitement mounts over the upcoming SundaeSwap DEX launch.
Cardano (ADA) traded within striking distance of its three-week high at the start of this week, leading some investors to suggest that a trend reversal was in order. In reality, the bullish momentum is primarily connected to an anticipation of the upcoming decentralized exchange (DEX) called SundaeSwap.
ADA price rose by nearly 12% on Jan.17 to reach an intraday high of $1.60, a day after SundaeSwap announced the launch of its "fully-functional beta decentralized exchange (DEX)." Nonetheless, the upside swing also came as a part of a wider rebound trend wherein ADA jumped by almost 50% in just seven days.
In detail, ADA's rebound began almost in sync with similar retracement moves across the cryptocurrency market. That included Bitcoin (BTC), which sharply reversed its trend on Jan. 10 after its price dipped to as low as $39,650. At press time, BTC price trades at $41,500.
ADA initially tailed the crypto market's reversal, but later continued its upside momentum on its own after taking cues from the euphoria surrounding the SundaeSwap DEX launch on Jan. 20. As a result, ADA emerged as one of the best performers among the top-ten cryptocurrencies based on a 24-hour adjusted timeframe.
What makes SundaeSwap bullish for ADA?
SundaeSwap's official DEX launch announcement included evidence of greater demand for ADA tokens in the future and this is typically a bullish signal for investors.
The moment we've all been waiting for has finally come!
— SundaeSwap Labs (@SundaeSwap) January 15, 2022
We're excited and proud to share that SundaeSwap and the ISO will be launching on the evening of Thursday, January 20th (EST)!
Check out the article below! https://t.co/8oDYU6i3k9 pic.twitter.com/upgNZx2xH2
The DEX platform also introduced its native SUNDAE token and discussed three ways to distribute it among users: via an initial stake offering (ISO) round, yield farming and direct exchange-based conversion.
Discussing the ISO round, SundaeSwap explained that it would distribute 5% of the total SUNDAE supply via five epochs. Each epoch represents a five-day reward cycle wherein users delegate their ADA tokens into a stake pool.
"If you want to make sure you qualify for all five ISO reward rounds, you must have ADA staked with eligible SPOs [Stake Pool Operators] before 21:45 UTC on January 25," the DEX's announcement read, adding:
"Your reward will be calculated based on the snapshot taken at that time, and at the same time at each subsequent epoch boundary."
Meanwhile, the yield farming program saw SundaeSwap adding four ADA-based liquidity pools: SUNDAE/ADA, LQ/ADA, WMT/ADA and CARDS/ADA. The DEX also allocated 500,000 SUNDAE per day from January through June.
ADA to $2?
The SundaeSwap-led bounce pushed ADA toward its 100-day exponential moving average (100-day EMA; the blue wave) near $1.57.
Additional bullish cues have also been coming from the anticipated launch of Pavio, Cardano's first metaverse undertaking.
Pavio is a Decentraland-like virtual land startup with some 100,000 land parcels, each being minted as a unique nonfungible token (NFT) with coordinates. The advent of the Metaverse in the crypto sector in the past months and Cardano's involvement in it may boost demand for ADA further.
Related: Meta poaches staff from Microsoft and Apple for metaverse plans
This raises the possibility for Cardano to close above its 100-day EMA resistance wave, thus shifting the next upside target toward the 200-day EMA near $2.
Conversely, risks of an overall crypto market crash led by the U.S. Federal Reserve's tapering programs this year could spoil ADA's bullish setup to an extent.
"While ADA is far from its peak, the prospect of obtaining more scalability as part of its 2022 roadmap explains why investors appear to be betting big on Cardano. This point was also noted by Liam Bussel, the chief marketing officer of Cardano-native DEX WingRiders in a statement to Cointelegraph.
Bussel said,
"In a world characterized by high performance and novel use cases, Cardano will be able to keep up and lead the pack. As a result, a weekly closing above $1.80 is likely, barring any last-minute profiteering by sellers."
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