Cardano has been significantly boosted by Sundae Swap (SUNDAE), a decentralized exchange, which is set to go live to beta mainnet on January 20. As such, ADA is leading the top ten cryptos with +10% gains over the last 24-hours and Cardano has been elevated to the fifth position in the market capitalization.
Its competitors Polkadot (DOT), Cosmos (ATOM) and Terra (LUNA) have declined over the past day with heavy losses. The overall market capitalization for cryptocurrencies has fallen by 2%. But it should be noted that the markets have shrunk by 7% since the dawn of 2022.
The Cardano team says SundaeSwap uses smart contracts, like other decentralized exchanges) to match token trades between users. It distributes part of the trading fees back to the investors who provide liquidity to the platform. Within six months of the launch of the platform, users can earn SUNDAE rewards. However, it should be noted that the rollout will be beta with limited features. Initially, it will have trade matching times of hours to days.
The team said the execution of fully decentralized governance will not be immediately possible. This is attributed to the existing transaction size limits on the Cardano blockchain.
The first round of ISO rewards will be calculated on January 25. According to information on the SundaeSwap portal, ISO participates must use ADA for ISO Scoopers. By doing so, they will be able to earn SUNDAE for all five ISO rounds. Users will be able to acquire SUNDAE in three ways. They can either participate in the ISO, earn yield farming (something to do with staking) rewards (which will be available from January to June), and by swapping other tokens for SUNDAE on the platform.