Without a doubt, the Cardano ecosystem is one of the most fruitful ecosystems in the crypto world. It is the home for plenty of new DeFi projects, NFTs, and other applications that are being deployed on this great blockchain.
Today, we are going to discuss and offer a beginner guide for one of the most important DeFi projects on the Cardano ecosystem. It is called SundaeSwap. Needless to say, Sundae is named after ice cream and follows the trend in the crypto world such as other projects called SushiSwap or PancakeSwap.
In the following sections, you are going to learn every single detail you might want to know about SundaeSwap. So, if you have been looking for an opportunity to learn more about this promising and popular DeFi project, this is it! So, let’s start without losing any time.
What Is SundaeSwap?
As we noted before, SundaeSwap is one of the popular and promising DeFi projects that was developed in the Cardano ecosystem. It is an AMM decentralized exchange that allows its users to trade, lend or stake tokens.
The best part of SundaeSwap is it allows its traders to enjoy little commission fees. In addition to this, it allows its liquidity providers to make a profit over their deposits. Moreover, this amazing project also has its own token called SUNDAE.
Sundaeswap Guide, How Does SundaeSwap Work?
Since Uniswap and SundaeSwap projects are considered DEX and use an AMM mechanism, they have a similar working mechanism. AMM stands for Automated Market Maker and provides amazing benefits, especially for liquidity providers in the platform.
As you know, Cardano has a eUTXOs model. eUTXOs stands for Extended Unspent Transaction Outputs to maximize the profits of the traders. However, Cardano implements the AMM slightly differently than other blockchains.
It is worth noting that SundaeSwap developers did not prefer the common programming language Solidity in such projects. Instead, they coded the entire project with Plutus/Haskell to provide more versatility in their operations and function. Without a doubt, this is one of the important reasons why SundaeSwap managed to take its part among the best DeFi projects soon after it launched.
What Is SundaeSwap Token?
Just like all other popular DeFi projects, SundaeSwap has its own token that is native to its platform. According to the whitepaper of SundaeSwap, their native token is called SUNDAE and it is designed and offered for utility uses.
The SundaeSwap team will distribute the tokens with the ISO program, which took place a few days ago. Besides utility, the SUNDAE token will be used for governance and the maximum supply of SUNDAE tokens is determined as 2 billion tokens.
Here is the quick overview about the SUNDAE Token allocation:
- Maximum Supply (100%): 2,000,000,000 Tokens
- Public (55%): 1,100,000,000 Tokens
- Team (25%): 500,000,000 Tokens
- Investors (13%): 260,000,000 Tokens
- Future Hires (5%): 100,000,000 Tokens
- Advisors (2%): 40,000,000 Tokens
How to Swap Tokens in SundaeSwap?
First, you need to connect your wallet to SundaeSwap to start engaging in any kind of trade on the platform. It is important to note that all kinds of Cardano transactions must be paid with an ADA token. In this regard, you need to keep enough ADA tokens in your wallet to meet the transaction fees.
Step 1: Select Your Tokens
First, you need to select the pair you would like to swap. For instance, in case you would like to swap ADA token to SUNDAE token, you need to select ADA token first and then the token you would like to swap to second.
Since we are going to swap the SUNDAE token, in this example, we recommend selecting SUNDAE. Traders can also search for tokens by using the name, symbol, or policy ID.
Step 2: Type the Amount
Now, you need to specify the amount you would like to swap. In this regard, you have two options. You can either type the number of tokens you would like to swap, or you would like to receive. The SundaeSwap platform will automatically convert the amount of Token you need to convert or swap for you.
In this calculation, the platform uses metrics such as liquidity pool depth, market price, and other important details.
Step 3: Review Your Transaction
SundaeSwap pops up a new window to let your review your request before it automatically performs the transaction for you. In this popup, you are going to find a quick overview of your trade. Here, you will find details such as:
- Expected Amount: This shows the amount the end-user is going to receive after he or she submits the swap request to the blockchain.
- Liquidity Provider Fee: Depending on your preferred liquidity pool, SundaeSwap will charge you a certain amount of fee. The platform has three pool tier fees, and these are 0.01%, 0.3%, and 1%.
- Route: This indicates the path that your transaction will follow to find the optimal price for your swap request.
- Minimum Received: This indicates the minimum number of tokens you are going to receive at the end of your transaction. It is calculated based on the current market price, slippage limit setting that you have set before your transaction. Traders can always change their slippage tolerance rates through their swap panel.
- Scooper Fee: In this section, you are going to view your Scooper processing fee that will be paid to Scoopers to submit your request on the blockchain.
Step 4: Submit Your Request
Once you review your request and believe that everything is fine, all you need to do is click on the “Order Swap” button to finalize your trade!
How to Connect Your Wallet to SundaeSwap Interface?
You can imagine your wallet as your Cardano account. Traders have to use their wallets to connect to the SundaeSwap or any other decentralized applications or protocols to carry out a transaction on target systems or platforms.
Basically, you can also think of your wallet as your Gmail account you use to connect and use Google services. Both wallets and your Gmail account serve the same purpose and function in the same way. Here are the steps you need to follow to connect your wallet to the SundaeSwap interface:
Step 1: Connecting Your Wallet
First, you need to visit the app.sundaeswap.finance to access the interface and then click on the Connect Wallet button. You can find this button at the top right of the screen.
Step 2: Review and Accept Policies
Review and check the policies such as Disclaimer, Privacy, and Use Terms. If everything is okay for you, then pick your preferred wallet from the pop-up window. Depending on the wallet you are going to use, you will be provided with instructions to follow.
Follow these instructions to connect your wallet. It is worth noting that you can connect your wallet through the mobile app of SundaeSwap or a web browser.
Step 3: Enjoy SundaeSwap
Once you follow the instructions to connect your wallet to SundaeSwap, you will be ready to enjoy all kinds of transactions on the SundaeSwap interface! You can swap, trade, or provide liquidity depending on your preferences!
Important Note About Connecting Your Wallet to SundaeSwap
Traders will use the wallets they have connected to the SundaeSwap interface for all kinds of transactions and actions they are going to take on the platform. This constitutes the main difference between centralized and decentralized applications. You will carry out all your operations through your wallet and your private key for your wallet.
Which Wallets Are Supported by SundaeSwap?
Although the Cardano ecosystem is one of the notable ecosystems in the crypto world, it is still a new ecosystem. Thus, it is still developing and there is some confusion among users. Wallets are one of the categories that lead to confusion among the users as well.
Thus, we wanted to compile this section for you to inform you about which wallets are supported by SundaeSwap and which are not available right now.
Supported Wallets by SundaeSwap
Considering that SundaeSwap is a considerably new project, the list of supported wallets is quite short too. However, more wallets will be included in the future. For now, SundaeSwap supports two wallets, which are Nami and ccvault.
In addition to this, depending on the seed phrase and wallet type that interacts with Cardano, you can use additional wallets too. Make sure that you have a 15 or 24-word combination for your created wallet and never share your seed phrase with someone else.
If you are using Nami wallets and importing phrases into your wallet, your funds may display as 0. This is a common problem in Nami wallets, and it does not mean that you have lost all your ADA tokens. You just need to transfer your tokens to a new address.
Why Does SundaeSwap Do Not Support XYZ Wallets?
SundaeSwap only supports CIP-30 compliant wallets. This means that the platform supports wallets that can communicate with a web page. Unfortunately, you will not be able to use any wallet that does not have this feature.
In case you need further assistance or have questions, you can always contact the SundaeSwap team through the Contact page or social media accounts.
How to Deposit Liquidity in SundaeSwap?
One of the biggest advantages of SundaeSwap is it allows liquidity providers to make money by simply lending currencies to other traders. If you would like to benefit from this opportunity and make money without any effort, here are the steps you need to follow.
Firstly, we would like to note that you can deposit liquidity into existing liquidity pools and earn trading fees as a reward by doing so. The good news is that providing liquidity to any existing pool is highly straightforward in SundaeSwap.
Step 1: Visit SundaeSwap
First, head to the app.sundaeswap.finance to access the platform. If you have not connected your wallet yet, click on the Connect Wallet button and follow the instructions to connect your wallet to SundaeSwap. Later on, click on the Home button on the navigation panel located on the left sidebar.
Step 2: Search for Liquidity Pools
Now, you need to search for and select the liquidity pool that you would like to deposit.
Step 3: Learn More and Provide Liquidity
Once you select your preferred liquidity pool, now you need to click on the More button located on the right section of that liquidity pool. Later on, click on the Provide Liquidity button to continue your transaction.
Step 4: Make Your Selections to Provide Liquidity
In this step, you need to type the number of tokens you would like to deposit to the liquidity pool. You will find this section on the Provide Liquidity panel. If you want, you can also view and set other factors such as trading volume, your risk assessment, or TVL.
Important: You do not have to enter the second amount since your assets must be a 50:50 ratio so that you can deposit them. SundaeSwap will automatically calculate and adjust the other asset on your behalf.
Step 5: Review and Confirm Your Deposit
You are almost done! Once you follow the above-mentioned steps, you will only have to review your deposit in the last step. If you are okay with the deal, you can approve your transaction, provide liquidity to your preferred pool, and start making money in a short time by lending.
After your order is processed, you will be able to see the details of your liquidity position in the Liquidity section. You can find this section on the left of your screen, on the navigation menu.
Conclusion
SundaeSwap is one of the most promising platforms that was built on the Cardano ecosystem. Considering its robust system and the power of the Cardano ecosystem, this platform will be highly popular in the following days.
Thus, it may be a good idea to take your part in the SundaeSwap ecosystem right now! We have compiled this guide for this purpose. We believe that we have covered all the basics that any trader needs to know to start using the system.
If you have any questions or concerns, please feel free to share them with us by leaving a comment on this sundaeswap guide.
