SundaeSwap is a decentralised, autonomous protocol for trading Cardano projects and tokens, on the Cardano blockchain. The application is (at the time of writing) in public beta on the Cardano mainnet. As a result, the functionality is a little bit behind other DEXs such SpookySwap (Fantom network) and Trader Joe (Avalanche). SundaeSwap, however, does still allow users to swap tokens, provide liquidity, and farm to earn yield. Like all other DEX’s you will need to make sure you have some Cardano in a wallet to pay for gas fees. Let’s jump in and learn how to use SundaeSwap!
Getting Started on SundaeSwap
To get started with SundaeSwap, go here and connect a Cardano wallet. You have two choices, either Nami or ccvault. For the purposes of this guide, we are going to use the Nami wallet. If you have not already, then first install your preferred wallet.
- Select your wallet. If using Nami Wallet, then you will need to use either Google Chrome, Microsoft Edge, or Brave when using SundaeSwap.
- Give the application access to your wallet by clicking on the ‘Access’ button.
- You will receive confirmation that your wallet has connected. It is that simple!
Swapping Tokens
Swapping on SundaeSwap is very simple.
- You start by clicking on ‘Swap’ in the navigation menu.
- Choose the tokens that you want to swap from and to using the dropdowns. Once the ‘Swap’ button appears enabled, click ‘Swap’
- Click on ‘Order Swap’, and then your wallet will ask your permission for the transaction.
- Once you have clicked the ‘Sign’ button and authorized the swap, you will receive confirmation of the transaction being queued.
- When your request to swap has been sent to the Cardano blockchain to process, you will see the ‘Success’ message to know it’s being processed. You check on the progress by clicking on the ‘View on Cardanoscan’ link.
- To check your swap has gone through you can click on the ‘View Orders’ button, or by navigating to the menu on the left – and clicking ‘Orders’. Once completed, the transaction will appear in the ‘On-Chain Orders History’ section.
That’s it, simple as that!
Liquidity Pools
A liquidity pool (LP) is a pool of two tokens, e.g. $ADA and $SUNDAE tokens. Users can earn a share of the trading fees within the pool by depositing a pair of tokens into the LP (also known as “adding liquidity”). You will receive an LP token, representing your share of the LP. This is a super simple process!
You have a couple of options to move forward here.
1. You can click on the “Provide Liquidity” button on the homepage (highlighted) below. OR We would recommend scrolling through the list of liquidity pools, pressing the ‘More’ button for the one that interests you the most. This displays information about the pool. Then click the ‘Provide Liquidity’ button.
2. Enter the amounts of each token that you wish to deposit to the liquidity pool, and then press ‘Provide Liquidity’ button.
3. Click the “Order Deposit” button initiate the request to provide liquidity.
4. Approve the transaction within your wallet.
5. You will see the ‘Success’ message to see the swap has been queued. You check on the progress by clicking on the ‘View on Cardanoscan’ link.
6. After clicking ‘View Orders’, you can see that the order is pending. Once complete, it will be moved to the ‘On-Chain Order History’ section.
Your LP tokens will now be available in your wallet, ready to go yield farming.
Yield Farming
In return for depositing tokens to a Liquidity Pool, you will receive a “LP” token. You can stake these tokens in one of the Yield Farms on SundaeSwap – earning extra yield in the form of $SUNDAE Tokens.
- Click on ‘Liquidity’ in the navigation menu
- Your available LP tokens will be displayed. If you have no LP tokens, you will be directed to provide liquidity in the first instance. Click on the ‘More’ button to see more details of the farm.
- In order to set up a yield farming position, click on the ‘Stake LP Tokens’ button.
- Input the amount of LP tokens that you wish to stake. For the above farm, you are required to stake for a minimum of 30 days prior to earning any rewards. Select “Stake Tokens”.
- Approve the transaction in your wallet, and once the transaction is in progress, you will see the below message. You can check on the progress by clicking on the ‘View on Cardanoscan’ link.
- Once the transaction has been completed, you will see your new yield farming position.
Congratulations, you will now be earning Farm rewards!
That is how to use SundaeSwap!
Now, if you want to know how to use Cardano (buy/sell/trade), read Rebecca’s elaborate guide on How To Use Cardano | ADA Guide to really get going!
Rebecca is a crypto investor and content writer based in the UK.
She specializes in breaking the news into bite size pieces and simplifying investing topics.
You will find her on Twitter and Instagram providing crypto and investing education.
