I've been seeing a lot of chatter about SundaeSwap recently and wanted to put out a word of caution on it.
People are talking like this will become the main Dex for cardano, however there is a huge red flag in the whitepaper (found here: https://sundaeswap.finance/papers/SundaeSwap-2021-06-01-Fundamentals.pdf)
In particular, I'd like to draw attention to:
"This model, however, has a fatal flaw. Because any given eUTXO can only
be spent once, as part of one transaction, it appears as if only one swap can
happen per block. On the Cardano blockchain, there is roughly one block
every 20 seconds. This would be abysmal throughput for a decentralized
We will discuss the SundaeSwap scaling solution in a future whitepaper."
In other words, they do not have a working scalable product, and as far as I can tell there has been no "future whitepaper" where they have elaborated on their plan for scaling.
I'd recommend caution with this exchange until they can give further details on their scaling solution. Of course, not financial advice and do your own research.
Edit: See SundaeSwap's response here: https://www.reddit.com/r/cardano/comments/pa5m66/a_word_of_caution_on_sundaeswap/ha2nznx
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