Cardano: The Aftermath Of SundaeSwap
SundaeSwap launched on the 20th of January, now it's time to do a review on the launch and things don't look so great right now.
What happened?
SundaeSwap alerted its users that transactions could take a lot of time to process and they weren't wrong. Right from the beggining transactions started to accumulate and to be on queue for many hours, many users didn't get the price they wanted for the token they wanted because of the time it took for the transaction to go through. This started to snowball and transactions got stuck for hours and hours. Some transactions started to fail due to the Cardano network congestion. People couldn't swap or provide liquidity right away.
Things got worse when first Nami wallet couldn't take on the load and started to fail, after that CCVault started to do the same thing. While network congestion was expected, wallets not working wasn't expected and this contributed to what happened. Atleast Cardano doesn't use a fee system to prioritize transactions and users didn't lose a lot in fees, transactions are done by the order they are put in.
What can be taken for this?
Cardano wasn't ready for this and it was already known, the scalability of the network is only being optimized starting this year with Basho.
Another thing we can take from this is that lending ans borrowing can't be done right now on the Cardano blockchain. Imagine being liquidated on your position because you couldn't put more collateral on your borrowing position due to network congestion. This would make a lot of people lose a fortune.
Developers on the Cardano blockchain have a lot to take from this, Cardano needs scalling solutions right away but this can't put decentralization on the side. If they try to centralize the network the project will be no different from a lot of projects with high TPS but a lot of centralization. Cardano is trying to solve the trillema and the focus can't be taken from that.
Should SundaeSwap launch been delayed?
There's two sides of the coin, while all this could be avoided by delaying the launch, this also made everyone aware of the problems that need to be solved. One thing is for sure, they are dealing with people wealth and this should not be taken lightly. Some people got burned by how things went.
It was a good idea to delay the launch of lending and borrowing because that could have destroyed Cardano reputation completely.
Cardano is still a good idea and the roadmap promises to solve all this issues, Basho comes to solve all this issues, lets see how things evolve this year. The experience with SundaeSwap might become better as the time passes like they said. We have to wait and see.
Although this went in a horrible way, Cardano's native tokens increased a lot in price with Sundae token trading at 0.86 ADA per token right now.
Best Regards,
Cryptopeach
