Excitement from the Cardano decentralized finance (DeFi) community in supporting the development and roll-out of the SundaeSwap DEX continues to grow. Today, we’re very happy to announce a collaboration with Liqwid Labs. SundaeSwap will become Liqwid’s Cardano DEX of choice to integrate with at the time of the Alonzo hard fork, while Liqwid will provide additional liquidity to the DEX at the time of launch through its LQ governance token.
The SundaeSwap DEX will support ADA pairs for Liqwid’s LQ token and qToken stablecoins to be swapped, providing additional liquidity for both. The SundaeSwap DEX has agreed to develop one of the first oracle solutions on the Cardano blockchain, allowing Liqwid to easily and securely initiate lending and borrowing markets for Cardano native assets in supported liquidity pools. Additionally, as part of the agreement, Liqwid Labs and SundaeSwap will collaborate to implement an audited governance module composed of Plutus smart contracts. This will allow the SundaeSwap team to focus on more day one features, while providing a well-tested voting mechanism for community-driven innovation going forward.
Liqwid is an algorithmic noncustodial liquidity protocol for interest rates built on the Cardano blockchain. The decentralized liquidity protocol is built for lenders, borrowers and developers and functions as a set of open liquidity pools with algorithmically set interest rates based on supply and demand each block. Liqwid’s eUTXO lending protocol and governance-enabled staking functionality set the standard for incentivizing liquidity in Plutus DeFi markets, and we’re excited to have them be part of our launch and future development plans.
We’re excited that Liqwid has chosen to use their precious developer hours to work towards integrating with us at launch; Liqwid will certainly integrate with many DEX’s in the fullness of time, and there is a certain pride in being chosen as their first point of integration. Both companies are working hard to create a rich and interconnected Cardano ecosystem with room for healthy competition.
This collaboration opens the door to innovative developments down the road for the SundaeSwap DEX, and we anticipate that it will provide our DEX — and the entire Cardano ecosystem — with additional liquidity and market stability at the time of our launch and beyond.
For more details on Liqwid, check out www.liqwid.finance!
For more details on SundaeSwap, head to www.sundaeswap.finance!