Disclaimer: The text below is a press release that was not written by Cryptonews.com.
Cardano, a proof-of-stake blockchain platform founded by Charles Hoskinson and being developed by the team at IOHK says its goal is to allow “changemakers, innovators and visionaries” to bring about positive global change. Among those innovators, SundaeSwap will be of the first.
What is SundaeSwap?
SundaeSwap is an automated market maker (AMM) – a decentralized application (Dapp) that will allow users to trade tokens native to the Cardano blockchain anonymously, fast, and secure.
Aiming to launch in August of 2021 with the release of Goguen, SundaeSwap will use an automated market model to allow users to trade against and provide liquidity to a liquidity pool (LP) which are funded by the users of the platform who get tokens in compensation.
What is an ISO?
As a result of community interaction they are developing a new method of fundraising they are calling the initial stake pool offering (ISO). The function of which is as follows: Users who want $SUNDAE tokens before it launches publicly and is available to buy without the use of the CLI will stake their $ADA coins in a stake pool they set up, the fees of which will be much higher than a traditional stake pool (around 75-100%). After fifteen days of running the pool they will be able to see the users’ wallet addresses who have staked and airdrop $SUNDAE tokens directly into their wallets proportional to the amount they contribute to the pool. At the end of each epoch there will be a batch of tokens distributed.
As an example, say there is a group of ten individuals who contribute to the pool. At the end of the epoch in this example they will say that the team raised 100 ADA and are planning to give away 4,000,000 $SUNDAE. If one individual contributed to the raising of 50 of that 100 ADA, they would get half of the $SUNDAE tokens distributed during that epoch. For simplicity’s sake they will then assume the other nine people each contributed an equal amount, roughly 5.55 ADA. Those nine people would each get approximately 222,222 $SUNDAE tokens.
One would question how this is any different than a traditional ICO launch as large institutional investors are still able to stake much more than the average investor. The great thing about an ISO is that they can cap the funds staked proportional to the reward, the cap will be high enough to where it still makes sense for them to run the pool, however it will not be so high to where large investors swallow up small investors completely.
Ultimately, SundaeSwap’s innovative approach towards funding their project and rewarding their supports is something that is en route to disrupt how future projects raise their funds.
Where can I learn more about SundaeSwap?
Join the discord: discord.gg/53uBjrzWwz
Follow the twitter: https://www.twitter.com/SundaeSwap
Check out their site: https://www.sundaeswap.finance/
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