Cardano Launches First Decentralized Exchange Built on ADA, Triggering Price Spike

Cardano (ADA) has skyrocketed since launching the first ever decentralized exchange (DEX) built on a smart contract platform.

A fully functional beta version of DEX premiered today on Cardano, according to a statement from the SundaeSwap (SUNDAE) team.

With its launch, Cardano has risen from its daily low of $1.32 to $1.42, an increase of 7.5%. The seventh largest crypto asset by market capitalization has since been stable and has been exchanged for $1.40 at the time of writing.

Sundae Swap’s utility token, SUNDAE, allows owners to trade, bet, lend, and vote on platform governance protocols for coins. Tokens are unique because their prices are determined not only by DEX developer Sundae Swap Labs, but by the entire community.

“I don’t think it’s suitable for Sundae Swap Labs. [the] Community sells tokens [at a] Set price.

The first circular supply of tokens is sold directly by DAO (Decentralized Autonomous Organization) using an automated price discovery mechanism. Input: Taste test.

At the start of the protocol, 7% of the token community supply is locked by DAO to a smart contract called The Taste Test. “

The taste test is a 10-day period during which community members can deposit ADA or SUNDAE from the reward pool without exchange. After 10 days, the deposited tokens will create an ADA / SUNDAE liquidity pool and establish the initial price of the tokens.

Participants can then claim a liquidity provider token that represents both assets in the pool and track their share of the pool.

Sundae Swap isn’t the only new feature seen in ADA this week. Ethereum (ETH) competitors have recently entered the Metaverse with the launch of Pavia, a Play-to-Earn non-fungible token (NFT) virtual reality project.

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Featured Image: Shutterstock / NextMarsMedia

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