Published in · 3 min read · Dec 7, 2023
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12/7/2023
Launched on January 20th, 2022, Sundaeswap was the first AMM based DEX to launch on the Cardano blockchain and is powered by its governance token SUNDAE. The launch of Sundaeswap was an immensely popular event which led to orders being delayed by multiple days. This article delves into the SUNDAE token, its tokenomics, utility, and more.
Sundae Tokenomics & Distribution
SUNDAE has a total supply of 2 billion tokens. Currently 752.28 million of these are in circulation, equivalent to 37.6% of the tokens supply. At 0.0205 ADA per token, this gives SUNDAE a market cap of $6,719,571 and a fully diluted market cap of $17,864,608, placing it at #24 in the Top 50 on TapTools. SUNDAE has a median holder balance of 82.09 SUNDAE equivalent to 1.67 ADA, and an average holder age of 588.14 days. SUNDAE has the 6th largest market cap of all DEX tokens on Cardano.
The above image details the tokenomics of the SUNDAE token. 55% of the token is slated for the public and includes yield farming rewards and ISPO rewards. 25% of the supply of the token is earmarked for the Sundaeswap team and 13% is reserved for investors. The remaining 7% of the token supply is split between future hires and advisors of the DEX.
Liquidity
SUNDAE token has 3.27 Million ADA in liquidity across 6 Decentralized Exchanges on Cardano. The vast majority of this liquidity is on the SundaeSwap DEX which holds 98.86% of the token’s total liquidity, followed by VyFinance which holds 0.47% of total liquidity. The third most liquid DEX for SUNDAE is Minswap which has 0.36% of the token’s total liquidity.
Volume
SUNDAE has a lifetime trading volume of 177.97 Million ADA in a total of 212,405 trades, equivalent to 1.66 Billion SUNDAE tokens. The token has a total buy volume of 80.52 million ADA and a total sell volume of 97.44 million ADA, with a majority of this trade volume taking place on the Sundaeswap DEX.
Utility
We’ll now examine the utility offered by the SUNDAE token.
Governance
SUNDAE holders can engage in governance and directly influence the protocol’s future. The Decentralized DAO is responsible for important decisions, including voting on parameter changes and the introduction of new features, yield farms, and more, ensuring a community-driven approach to protocol development.
Conclusion
Sundaeswap is Cardano’s first AMM-based DEX, incorporating governance through its token, SUNDAE. This article has provided insights into SUNDAE’s tokenomics, distribution, liquidity, volume, and utility, emphasizing its standing as the sixth-largest DEX token on Cardano. SUNDAE’s governance features offer a platform for community participation, shaping the future of the Sundaeswap DEX.
You can find out more about SundaeSwap at the following link: https://sundae.fi/products/sundaeswap
