In a statement on Dec. 5, the company behind Cardano — Input Output HK — stated that the SundaeSwap DEX will soon be launched as a testnet.

IOHK added that it expects Cardano’s big DEX ambitions to grow.

“We’re looking forward to a huge amount of interest in this highly anticipated event and a lot of activity. That’s why we’re working together.”

However, there have been early problems with some bugs that pushed the release from Sunday to Monday.

Might need to be renamed to MondaeSwap…

Seriously, we found a bug when updating the scooper license.

We’re cleaning it up, and once it’s done, the testnet will be live right away. Thanks for your patience with us!

SunDaSeWAP Lab (@SundaeSwap) December 6, 2021

However, this launch is just a testnet, so some steps will be required to participate. A third-party wallet (such as Nami) needs to be used to connect to the faucet to get testnet tokens for experimentation.

The announcement did not mention how long the test will run, nor the launch date of the mainnet. SundaeSwap is a scalable DEX and automated liquidity provision protocol that supports native token and ADA swaps, the white paper was published in June.

Stress Testing the Network

IOHK said the test was designed to “put the network under high throughput,” allowing the team to monitor and analyze parameter settings. Cardano conservatively sets these network parameters such as block size, CPU limit, and memory limit at the beginning of the test.

Later today, @SundaeSwap will be releasing their DEX on the #Cardano TestNet. We are looking forward to the great interest in this highly anticipated event and plenty of activities. That’s why we work together. Because we also want to learn a lot.

1/8 – Input Output (@InputOutputHK) December 5, 2021

It added that users may expect congestion and bugs in the testnet, which means it is getting the traffic it needs for evaluation.

“Remember, this is early DApp software, and it’s too early for DeFi on Cardano. Testnets are a key part of iterating and improving the experience.”

Cardano’s emphasis on a “slow and steady” approach to DeFi, DAPPs and smart contracts has made it the target of some criticism from the crypto community. However, it still claims to be able to compete with, or even surpass, Ethereum.

“Ignore the FUD”, IOHK says, because there will be bugs, some of which have been reported by testnet users. The company encourages users to join its Discord channel to provide feedback on the SundaeSwap platform.

ADA Price Reaction

Cardano’s native token, ADA, fell along with the rest of the crypto market over the weekend, but failed to gain momentum from the DEX launch.

At the time of writing, ADA was trading at $1.4, down another 3 percent on the day, according to CoinGecko. The coin is down 15% in the past seven days and has plunged 55% since hitting an all-time high of $3.02 on Sept. 9.

FAQs

What is DeFi?

The first entry among the top DeFi interview questions would obviously point towards its definition. Decentralized finance is actually a financial ecosystem developed over the Ethereum blockchain network with various protocols and platforms. DeFi helps in easily moving around cryptocurrency tokens. At the same time, it also helps in trading, lending, and borrowing cryptocurrency tokens.

What does the future of DeFi look like?

As of now, there is no specific answer to this question, but the future looks bright for DeFi as it is slowly becoming mainstream. Technological advancement in the underlying infrastructure for DeFi is faster than ever with new innovative ideas popping up daily. 2021 looks like a great year for DeFi seeing the recent developments.

Is DeFi legal?

Yes, almost all DeFi projects or protocols need to abide by financial regulatory measures licenses to function regardless of whether they’re centralized or decentralized. Thanks to DeFi, financial watchdogs (e.g., the SEC) have started to notice the crypto space more than ever.

Is DeFi safe?

Yes, almost every protocol undergoes smart contract audits to ensure the codebase is secure and free from bugs and vulnerabilities. Majority of the popular protocols adopt strict security measures to ensure your crypto assets remain safe. Still, it’s advisable to conduct your due research before investing in any project.

Do I need some kind of cryptocurrency to participate in DeFi?

Yes, you would need cryptocurrency to participate in DeFi. Since Ethereum is the platform of choice, most DeFi projects’ tokens are based on the ERC-20 standard. Hence, it would be better for you to hold some ether for the sake of ease.

Do I need a crypto wallet for DeFi?

Yes, a digital wallet is a prerequisite for you to be able to dabble in the field of DeFi. There are several wallet options available for interacting with DeFi applications — MetaMask, WalletConnect, TrustWallet and Argent being the popular ones.

What are the important benefits of DeFi?

The primary objective of DeFi focuses on resolving the issues evident in traditional finance. Traditional finance depends on intermediaries such as banks. However, DeFi applications rely on code for specifying the resolution of any potential dispute. Subsequently, users have the ability to maintain comprehensive control over their funds. This can help in reducing costs related to use of financial services products to ensure a frictionless financial system.

The deployment of DeFi on blockchain takes away any specific point of failure, and data can be spread easily across various nodes. So, each node has copies of transactions carried out on the network. Therefore, it is difficult to impose censorship and a possible shutdown of service. The most significant benefit of DeFi points out to the improved accessibility of financial services for a broader audience.

How do DeFi applications work?

Another top mention among DeFi questions to ask in an interview definitely points out that it’s working. DeFi works through the development of dApps on a blockchain network like Ethereum and using smart contracts for automation. By using the two facets, DeFi applications could easily accommodate various financial services on a specific network. Presently, there are many notable examples of dApps tailored for lending automated loans known as crypto loans. Many apps related to DeFi also include the creation of stablecoins, investment options, asset exchange, and others available presently.

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