SundaeSwap: The First DEX On CardanoJanuary 30, 2022 1:09 pm
Cardano first started support smart contracts just last year and has recently seen the launch of its first decentralized application which is called SundaeSwap.
SundaeSwap is a decentralized exchange (DEX) and a token staking platform that uses that will be utilizing the smart contracts in the Cardano ecosystem to provide its trading utilities.
The launch of the network did not go without any hiccups as it was reported that the exchange was already experiencing issues related to congestion a few minutes after the launch which caused a lot of users to complain online and on Discord.
Cardano capacity nearing maximum after the launch of the SundaeSwap DEX, the percentage hovers around 93.19%, network overload has created problems with transactions, however the team has already announced that scaling solutions will be implemented.#CardanoCommunity #CryptoNews pic.twitter.com/xH31EJiaiF
— CryptoManiac (@Allecs2811) January 30, 2022
SundaeSwap CEO, Mateen Motavaf posted a message in bold font and all caps trying to address the volume of complaints on the server.
He stated, “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 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 stating, “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.”
As of today, users were still complaining of failed transactions and orders pending for over four hours. Chief investment officer Pi Lanningham responded on Discord stating, “Orders will continue to be processed (currently around 2500 orders per hour; currently ~11k orders on chain, ~1600 of them within slippage tolerance).”
As this was the first DEX launch on the Cardano ecosystem, ADA had been rallying up until the launch and it was reported that the token went from $1.28 to $1.55.
Unfortunately, when looking at this situation in hindsight, this increased anticipation and overwhelming attention brought more traffic than the SundaeSwap team was actually prepared for.
As a result, the first launch was somewhat disappointing as many had expected that this was something that would have been caught in testing.
— kryptobb (@kryptobb) January 28, 2022
“It is fair to say that major launches can lead to a lot of congestion on the chain, resulting in slowing down transaction time,” said Denis Vinokourov, head of research at Corinthian Digital.
“Thus, in hindsight, it was inevitable, and, in fact, SundaeSwap Labs itself acknowledged the likely operational constraints and limitations that the blockchain and the DEX will exhibit on opening day,” he added.
Vinokourov said a DEX is far from the most complicated of product launches.
“There are much more complicated iterations that have been launched by other smart-contract blockchains, and one would have expected more stress testing to prepare for the real-world traffic onslaught,” he said.
Despite the rocky start, Cardano has still been able to see around 2000 smart contracts deployed on the blockchain since the introduction of smart contracts in less than a single week.
At the time of this writing, Cardano is currently the 6th largest coin by market cap at an estimated $35.4 billion.
I absolutely agree. I just don't think Sundae swap was ready and nor was Cardano blockchain. It's a shame but they will get there eventually
— Glad instance (@RoyCox15897458) January 30, 2022
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