Cardano’s ecosystem is expanding with a slew of new projects, one of which is the DEX SundaeSwap, which is almost ready to launch its ISO.
What exactly is an ISO?
ISO (or ISPO) stands for Initial Stake Pool Offering, and it is a new token distribution model that can supplement the more well-known ICO (Initial Coin Offering) or IDO (Initial DEX Offering). In other words, it’s a type of airdrop that can be used in conjunction with a project’s token sale.
Because it involves staking to specific stake pools, the ISO model can only be implemented on Proof of Stake blockchains.
In more detail, users delegate their ADA (Cardano’s cryptocurrency) to stake pools participating in the ISO, and every Epoch (5 days), delegators are rewarded with tokens from the DEX, often in addition to the standard yearly ROA (Return on ADA), which varies according to the amount staked.
The ISO of SundaeSwap
SundaeSwap is the most anticipated of the Cardano DEXs. With 200k Twitter followers, they outnumber other DEXs such as Minswap (30k) and Maladex (20k) (10k). In comparison to Ethereum, Uniswap has 700k followers despite the fact that it has been around for years.
SundaeSwap has allowed existing stake pools to apply for the role of “Scooper,” which will not only be required to distribute their tokens, but will also be critical to the operation of their DEX.
At the time of writing, there is an ongoing vote that will determine which stake pools will become Scoopers and allow their delegators to receive SUNDAE tokens.
SPOs should be voted for.
The voting procedure is simple. We’ll use two stake pools that we interviewed for our Cardano SPO Column as examples: Bio Pool [BIO] and Stake for Nature [ST4NA].
It is sufficient to go to the SundaeSwap ISO Dashboard, choose the stake pools to vote for, and a specific amount of ADA will be displayed. In our example, it is 2.912453 ADA, with “912” corresponding to BIO and “453” corresponding to ST4NA:
Voters must send this transaction to themselves using a non-custodial wallet such as Yoroi or Daedalus. The SundaeSwap team will be able to scan the Cardano blockchain for these specific amounts and count the votes as a result of this. Users’ voting power is proportional to the amount of ADA they own.
The voting period will end on Tuesday, November 16, after which the SundaeSwap will announce the chosen stake pools and share more information about the ISO’s launch.
Cardano DEXs That Aren’t Cardano
We recently spoke with Minswap, another Cardano DEX that has been running its FISO (Fair Initial Stake Pool Offering) for several months. Minswap called themselves “Fair” because, rather than establishing their own stake pools, they collaborated with smaller SPOs (Stake Pool Operators) to counter the centralizing force of users staking their ADA with fewer stake pools.
Maladex was another DEX that chose the ISO model. However, in their case, they established their own stake pools and are rewarding users with MAL tokens when they delegate their ADA to the stake pools MAL, MAL2, and XMAL.
These are only the first steps in implementing DeFi on the Cardano blockchain. Developers have been working hard since the activation of smart contracts, and the first results are beginning to emerge.