A Sweet Opportunity
SundaeSwap, the first institutional-grade DEX on the Cardano Blockchain, will be going live today. This will give every Cardano user access to financial instruments, which generate passive income, that are currently only available to traditional financial institutions. We’ll go over all the information you need to know about SundaeSwap’s go-live date, and how to participate to earn SundaeSwap’s native token $SUNDAY.
Article Dictionary is at the end of every article. More than likely if you find an acronym or word that you’re unsure of, it’s defined in the Article Dictionary. The goal is that eventually you can read without referring to the Article Dictionary, but for all new comers- welcome.
Tip: All acronyms and words italicized are in the Article Dictionary.
So Close You Can Taste It
January 20th, 2022 – SundaeSwap goes live as a full-functional beta DEX.
January 20th, 2022 – Yield farming for $SUNDAE rewards begins, and will be available for at least the first six months.
January 25th, 2022 – First round of ISO rewards will be calculated. You must delegate $ADA to qualifying ISO Scoopers prior to 21:45 UTC to be able to earn $SUNDAE for all five ISO rounds.
When SundaeSwap goes live, there’ll be three ways to earn $SUNDAE. First, and the most simple way, is by swapping $ADA for $SUNDAE through SundaeSwap. Second, is by delegating your $ADA to a qualifying ISO Scooper. Third, is by earning yield farming rewards by being a liquidity-provider and farming your liquidity-pool tokens.
Since the first example, swapping $ADA for $SUNDAE, is a remedial task, we’ll focus on the second and third examples. The second example is based on delegating your $ADA as votes to a qualifying SPOs.
Interjection; See qualifying SPOs here: https://iso.sundaeswap.finance/#/voting
Delegating To A SPO
To delegate to a SPO, you must hold your $ADA in a supported wallet- outside of a centralized exchange. I suggest Yoroi because it’s lightweight and is available as a mobile application, or browser extension. Delegating your $ADA, as votes, is a matter of clicking a few buttons and then choosing the the percentage of $ADA you want to delegate. If you’re familiar with delegating your $SGB to Songbird FTSOs, then this’ll be a breeze for you. Be sure to choose from one of the qualifying SPOs– see the link above this section.
For a guide on how to delegate your $ADA in Yoroi, please visit this page and scroll down to the bottom: https://yoroi-wallet.com/#/faq/2
The reward for delegating $ADA to a qualified SPO is your fair share of 5% of the entire supply of $SUNDAE. Your share is based on how much $ADA you delegate, and how much $ADA others delegate because the distribution of $SUNDAE will be divided equally per $ADA (vote).
Providing Liquidity And Yield Farming
To provide liquidity to the SundaeSwap DEX, you must have a pair of supported assets. Once you have a pair, or multiple pairs, of the supported assets, then you’ll be able enter the liquidity-pool(s) to earn off transaction fees (swaps), in the form of $ADA, from every swap that happens between the pair(s) of assets you’ve provided liquidity for. After successfully submitting your transaction to enter the liquidity-pool, you’ll be given LP tokens that represent your share of liquidity within a respective pool. The LP token can be used to earn $SUNDAE through Yield Farming by staking your LP tokens within the respective farming pool- so if you’ve provided liquidity for the pair of $SUNDAE/$ADA, then you’ll want to stake your SUNDAE/ADA LP tokens within the SUNDAE/ADA farming pool.
Supported assets on the SundaeSwap DEX:
$SUNDAE/$ADA, $LQ/$ADA, $WMT/$ADA, and $CARDS/$ADA.
The reward for providing liquidity to SundaeSwap’s DEX is $ADA earned from transaction fees (swaps), and a total of 500,000 $SUNDAE distributed evenly amongst all participants in the farming pools.
Expect congestion and delays.
For more information about the congestion and delays to be expected, visit here: https://sundaeswap-finance.medium.com/expectations-congestion-mainnet-launch-e9da5abfd819
- SundaeSwap – Decentralized exchange (DEX), and decentralized finance (DeFi) protocol for the Cardano blockchain.
- Cardano – Proof-of-stake blockchain network.
- $SUNDAE – Native token of the SundaeSwap DEX.
- $ADA – Native currency of the Cardano blockchain used to pay transaction fees.
- ISO (Initial Stake Pool Offering) – A way for decentralized finance (DeFi) initiatives to distribute tokens in a fair and decentralized manner while also gaining community support.
- Delegate – Let someone else use your tokens to produce blocks; on a proof-of-stake network. You still own the currency, and you get a slice of any rewards they generate.
- DEX (Decentralized exchange) – Cryptocurrency exchange which allows for direct peer-to-peer cryptocurrency transactions to take place online securely and without the need for an intermediary.
- Centralized Exchange – Cryptocurrency exchange which is hosted by a single trusted entity that acts the intermediary for all swaps, and also acts as a custodian for all assets.
- Yield Farming – Funds are locked, or staked, into smart contracts that control the liquidity pools decentralized finance lending protocols rely on.
- Liquidity Pool – A pool of cryptocurrency assets locked within a smart contract, which can be used for exchanges, loans and other applications.
If you have any questions, then please don’t hesitate to join our Discord here: https://discord.gg/qprerSb3