# Sundǎeswaᴘ

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SundaeSwap is a decentralized exchange (DEX) protocol that has strong influences from the leading Ethereum DEX, Uniswap. For a primer on how this technology works, check out our Blockchain & Bitcoin 101 course. Here, you can uncover the fundamentals of how blockchain operates, including mining nodes, UTXOs, and much more. Then, our Ethereum 101 course is a fantastic next step to discover why smart contracts are critical to decentralized applications (dApps). Moreover, with expert-led tuition on the Ethereum Virtual Machine (EVM) and the account model, you’ll become an expert on the foundations of decentralized finance (DeFi) in no time! Join over 30,000 like-minded students today, at Ivan on Tech Academy!

**What is SundaeSwap?**

SundaeSwap is an ownerless decentralized exchange soon to be operating on the Cardano blockchain. With an intuitive user experience (UX) design, SundaeSwap creates a permissionless space for “efficient cryptocurrency transactions” using blockchain technology. Participants of the SundaeSwap protocol can create markets by providing liquidity, allowing others to exchange native tokens.

Striving to achieve “the Uniswap of Cardano” status, SundaeSwap operates the same traditional automated market maker (AMM) algorithm (x \* y = k) in addition to some innovative Cardano-specific twists. From the user-end perspective, the experience will be somewhat similar to other popular AMMs such as Uniswap, PancakeSwap, and SushiSwap.

Under the hood of the project, the SundaeSwap decentralized exchange (DEX) will operate slightly differently from its DEX counterparts on other chains. As an innovative take on Ethereum’s accounting model and Bitcoin’s UTXO model, the SundaeSwap Cardano DEX is implementing the novel eUTXO model, or “Extended unspent transaction output” model. We will discuss this in further depth later in the article. With the potential to be the leading Cardano DEX, SundaeSwap is, at the time of writing, a project still under development led by SundaeSwap Labs.

**SundaeSwap Labs**

SundaeSwap Labs, Inc., or simply ‘SundaeSwap Labs’, is responsible for the design and implementation of the Cardano decentralized exchange (DEX). Trading primarily as a software company, SundaeSwap Labs’ mission is to “enable economic empowerment for all”. To achieve this, SundaeSwap Labs is developing a suite of peer-to-peer tools facilitating the utilization of cryptocurrencies. As such, the first product to launch and the heart of the SundaeSwap Labs development scheme is the SundaeSwap Cardano DEX.

With headquarters operating from the San Francisco Bay Area, West Coast, Western US, SundaeSwap Labs has witnessed successful fundraising for the project since its inception on June 7th, 2021. SundaeSwap Labs currently has three core investors at the time of writing. These are cFund, Double Peak Group, and Alameda Research as the most recent investor. Together, these investors put in $1.3 million during the seed funding round on September 21st, 2021, to contribute towards the development of the new Cardano DEX, SundaeSwap.

SundaeSwap Labs brands itself as “a family of risk-takers and innovators looking to spearhead the future of finance”. However, although technically SundaeSwap Labs, Inc. is a centralized organization, the SundaeSwap Cardano DEX is a fully open-source, decentralized protocol. Moreover, the protocol operates governance management through the use of the native SUNDAE token and a decentralized autonomous organization (DAO).

**Cardano DEX**

The Cardano blockchain currently sits as the third-largest blockchain in existence by market cap, according to CoinGecko. Cardano Network presents a progressive, creative, and innovative approach to the development of blockchain technology. Furthermore, with a “slow and steady” mindset, the Cardano Network is launching its fully operational features in five stages. The first two phases, Byron and Shelley, are operational, providing solid foundations for decentralization. The third phase, Gogen, will introduce the function of smart contracts. This stage is set to attract large amounts of utility and economic activity to the network.
