Published in · 4 min read · May 14, 2024
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5/14/2024
Last week marked a significant milestone in the Cardano ecosystem with the launch of SundaeSwap’s V3 Smart Contracts. SundaeSwap, the pioneering AMM DEX on Cardano, continues to innovate and push the boundaries of decentralized finance. This article explores the latest developments with SundaeSwap’s V3 launch, offering insights into its advanced features and the broader implications for the Cardano blockchain.
V3 Smart Contract Launch
On May 9th, 2024, Sundae Labs announced that SundaeSwap V3 was now live on the Cardano Mainnet. This marks a significant development for the Decentralized Exchange as the smart contracts are written in Aiken which will offer users faster trades and lower fees. The launch of SundaeSwap V3 comes after a successful smart contract security audit by TxPipe.
SundaeSwap V3 contracts offer a far more dynamic pricing model, which is made up of the base fee and an incremental fee. The base fee is collected for the protocol as a part of each scoop, while the incremental fee is collected from each order. The base fee is shared by all participants in a scoop. This version of SundaeSwap also sees the base protocol fee drop to 0.50 ADA to encourage increased trading on the platform.
In terms of capability, SundaeSwap V3 can handle up to 35 transactions per batch, significantly more than the 2–4 transactions typical of earlier versions. Pi Lanningham from Sundae Labs quantifies this capacity: “At 35 orders per scoop, a maximum of 6 scoops per block, and an average of one block every 20 seconds, that’s a theoretical max throughput of around 907,200 orders per day.” However, he cautions that the practical throughput will likely be lower due to the shared nature of the blockchain with other protocols.
Liquidity Migration Tool
SundaeSwap V3 introduces a streamlined liquidity migration tool that enables users to transfer their liquidity, yield farming, and delegation swiftly and efficiently with just a few clicks. This user-friendly feature simplifies the process, allowing transitions to be completed within minutes. Protocol users on Twitter have reported successfully moving all of their liquidity, including yield farming positions, LP positions, and delegations, in just three minutes. This rapid functionality underscores SundaeSwap’s commitment to enhancing user accessibility and operational efficiency, which is crucial for advancing Cardano’s DeFi ecosystem and attracting a broader user base.
How SundaeSwap V3 Will Benefit Cardano
The launch of SundaeSwap V3 on the Cardano blockchain, employing the Aiken language, significantly enhances the end user experience by reducing fees and increasing transaction throughput. This upgrade is particularly crucial during market uptrends, where increased trading volume has previously led to network congestion. By efficiently managing higher transaction loads, SundaeSwap V3 ensures that the blockchain remains fluid and responsive, thus removing a major bottleneck that has historically dampened user activity and market participation.
This improvement is not only bullish for Cardano but also sets the stage for attracting greater trading volume and total value locked (TVL). As more protocols on the Cardano network upgrade to Aiken or Plutus V2, this trend towards higher efficiency and lower congestion is expected to draw even more users from other blockchains, bolstering Cardano’s position in the competitive DeFi landscape.
Conclusion
The launch of SundaeSwap V3 marks a significant milestone for Cardano as it moves into the next chapter of its decentralized finance journey this summer. With the implementation of Aiken-based smart contracts, the platform is poised to enhance its efficiency and scalability, addressing historical network congestion issues during peak trading periods. As SundaeSwap continues to evolve, it will be interesting to see how these developments contribute to the broader growth and maturity of Cardano’s DeFi ecosystem.
This article is strictly for informational purposes and does not constitute a promotion or financial advice. Our aim is solely to provide users with the latest news and updates within the Cardano ecosystem.
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