How To Be Prepared For Cardano's DeFi (SundaeSwap Launches on January 20th)

This week SundaeSwap announced that it will launch its DEX on the mainnet on the 20th of January. You can still qualify for their airdrop if you delegate your stake to one of the chosen pools until the 25th of January.

What to do to be prepared?

You have to install a web3 wallet, Yoroi isn't compatible yet with dapps neither is Daedalus. First you have to setup a Nami wallet or a CCVault wallet, these two wallets are fully ready to interact with dapps on the Cardano blockchain. I would advise to go for ccvault since it's ledger compatible, which means that you can pair it with your hardware wallet for more security. Both these wallets are Browser based.

After setting up one of this wallets you are ready to interact with a DEX. You have to put some ADA on your wallet or import your existing seed phrase to them. I would advise to setup a wallet just for DeFi and send funds from your main wallet to this new wallet. After this you can go to a DEX and trade your ADA for existing native tokens or provide liquidity, remember that this can only be done on SundaeSwap, so you have to wait until Thursday.

What I have to gain for being ready?

As you know when a DEX launches you have the best APY at the beginning, when there's not a lot of liquidity, you can gain advantage and farm a lot more in the beginning than when a few days pass. Be aware that some tokens might be overvalued but the opposite can happen to.

What to expect from a Cardano DEX?

You can expect liquidity farming finally coming to Cardano and an explosion of new tokens that you have to do a proper research before you buy them. DeFi is starting to grow a lot on the Cardano blockchain and SundaeSwap might be an even bigger catalyst for DeFi on Cardano. Note that some congestion might happen and your transaction might take some time to go through.

In the last 24 hours according to Defillama Cardano had an increase of 116% on the Total Value Locked on DeFi, with only one basic DEX active right now this is huge. Remember that this DEX, MuesliSwap, only offers swaps right now and we are talking about 3.5 million dollars in TVL already. It's to be expected that when SundaeSwap launches this value will skyrocket.

DeFi is coming together on Cardano and these next months will be a wild ride for Cardano users.

Best Regards,

Cryptopeach