SundaeSwap v3 Review: Cardano DEX Features, Fees & Roadmap

Amber Dimas

SundaeSwap Fee Calculator

How Fee Tiers Work

Low Volume

1.0%

For users with less than $10,000 monthly trading volume

High Volume

0.1%

For users with $10,000+ monthly trading volume

Based on your monthly trading volume, you'll qualify for the appropriate fee tier automatically.
Minimum volume threshold: $10,000 USD (as of v3 implementation).

Your Monthly Trading Volume (USD)

Amount to Swap (ADA)

When exploring Cardano's DeFi landscape, SundaeSwap is the first decentralized exchange (DEX) built natively on the Cardano blockchain, offering automated market maker (AMM) swaps for Cardano‑native assets. Launched in 2022 and currently on its third major iteration, SundaeSwap v3 promises lower fees, higher liquidity, and a governance upgrade. In short, SundaeSwap remains the go‑to DEX for Cardano users.

Why SundaeSwap Matters for Cardano

Cardano’s proof‑of‑stake design gives it strong security and low energy usage, but until recently the ecosystem lacked a native AMM. SundaeSwap fills that gap by letting traders swap ADA‑based tokens without handing custody to a centralized party. This non‑custodial model Cardano offers finality in roughly 20 seconds and processes about 250 transactions per second, meaning swaps settle quickly and at predictable costs.

Key metrics as of October 2025:

Total Value Locked (TVL): $7.1 million (up 70% YoY)
Daily swaps: ~15,000
Fee tier: 1 % down to 0.1 % based on volume and liquidity‑provider (LP) status

Core Features of v3

Version 3 builds on the original AMM engine but adds three practical upgrades:

Dynamic fee tier - larger traders drop into the 0.1 % bracket, while small swaps still pay 1 %.
Enhanced LP incentives - a quarterly reward program that boosted TVL from $4.2 M to $7.1 M.
Governance token shift - a planned new token (separate from SUNDAE) to let LPs vote on protocol upgrades.

The platform still relies on Automated Market Maker technology that prices trades using liquidity pools rather than order books. Liquidity pools hold pairs such as ADA/USDT‑C and ADA/MELD, enabling instant swaps.

How to Get Started - Wallets and On‑boarding

Before you can trade, you need a Cardano‑compatible wallet that can connect to the DEX. The most popular options are:

Nami Wallet a browser extension that supports native Cardano assets and easy DEX connections
Flint Wallet - similar experience, focused on mobile users
ccVault - hardware‑backed storage for higher‑value holdings
Yoroi Wallet - lightweight, good for beginners

Typical onboarding takes about 22 minutes for experienced crypto users and roughly 58 minutes for complete newcomers (Cardano Foundation study, Q4 2024). The steps are:

Install one of the wallets above and back up the seed phrase.
Fund the wallet with a small amount of ADA to cover transaction fees.
Visit sundaeswap.finance and click “Connect Wallet”.
Select the token pair you want to trade, enter the amount, and confirm the transaction in your wallet.
Optionally, add liquidity to a pool to earn a share of the fee tier.

During periods of network congestion (peak usage can raise failure rates to ~32 % of attempts), the UI displays a retry button and suggests increasing the ADA fee.

Liquidity providers beside glowing pool cylinders with fee gauge and new token.

Security Profile - What’s Safe and What’s Not

SundaeSwap inherits Cardano’s robust proof‑of‑stake consensus, meaning the backbone is audited by the Cardano foundation and has seen no major breaches as of 2025 (Slashdot analysis). Because it’s non‑custodial, users retain full control of private keys; the DEX only interacts with validator contracts that hold pooled assets.

Key security points:

No centralized custodial wallets - reduces single‑point‑of‑failure risk.
Smart‑contract audits performed by CertiK in early 2025; no critical vulnerabilities found.
Liquidity‑provider contracts are upgradeable via Cardano’s on‑chain governance mechanism.

However, the platform’s narrow focus on Cardano assets means cross‑chain attacks that target bridges (e.g., Ethereum‑BNB bridges) are not applicable, but also limits diversification for users.

Comparing SundaeSwap with Other DEXs

To understand where SundaeSwap stands, see the table below. All numbers are from Q2 2025 data sources.

Key metrics of major decentralized exchanges (2025)
Exchange	Primary Chain	TVL (USD)	Daily Swaps	Fee Structure
SundaeSwap	Cardano	$7.1 M	15,000	0.1 %-1 % tiered
Uniswap	Ethereum	$4.2 B	1.2 M	0.3 % flat
PancakeSwap	BNB Chain	$2.3 B	420,000	0.2 % flat
WingRiders	Cardano	$1.2 M	4,800	0.5 % flat

Observations:

SundaeSwap leads the Cardano DEX space but lags far behind Ethereum‑ and BNB‑based giants in liquidity and swap volume.
The tiered fee model can be attractive for high‑volume traders but feels steep for small swaps compared to flat‑fee rivals.
Cross‑chain competitors (Uniswap, PancakeSwap) offer broader token selections, while SundaeSwap remains limited to Cardano‑native assets.

Future Outlook - v4, Governance & Cross‑Chain Ambitions

Roadmap updates from SundaeSwap Labs indicate a push toward a v4 upgrade that will introduce:

Limit‑order functionality via off‑chain order books.
Cross‑chain bridge integration (planned partnership with an upcoming Cardano‑Ethereum bridge).
Decentralized governance token (distinct from SUNDAE) slated for Q4 2025.

Analysts at Delphi Digital argue that capturing just 1-2 % of Cardano’s projected $3.2 B DeFi market by 2027 could lift SundaeSwap’s TVL to $30 M+, provided the team delivers these features on schedule. Conversely, Bernstein’s Digital Assets team warns that if competitors like WingRiders roll out similar upgrades faster, SundaeSwap’s market share could dip below 50 % of Cardano DEX volume.

From a user perspective, the most immediate benefit will be the upcoming governance token, which will let LPs vote on fee‑tier adjustments and future feature priorities. This aligns with the broader Cardano community’s push for on‑chain decentralization.

Futuristic Cardano‑Ethereum bridge with hero holding governance token and voting holograms.

Pros & Cons - Quick Reference

Pros	Cons
First native Cardano DEX - strong brand recognition.	Limited token list - only Cardano‑native assets.
Tiered fee model rewards high‑volume traders.	Higher fees for small swaps (up to 1 %).
Robust security via Cardano’s PoS and audited contracts.	No limit orders or cross‑chain swaps yet.
Active community (15k Discord members) and LP incentives.	Onboarding can be confusing for crypto newbies.

Bottom Line - Is SundaeSwap Worth Your Time?

If you hold ADA or other Cardano‑native tokens and want to stay within the ecosystem, SundaeSwap v3 is still the most convenient swap hub. The platform’s security, community backing, and upcoming governance token give it long‑term promise. However, traders looking for deep liquidity, cheap micro‑trades, or cross‑chain arbitrage should keep an eye on Ethereum‑based DEXes or wait for the v4 feature set.

Frequently Asked Questions

What wallets can I use with SundaeSwap?

You can connect Nami, Flint, ccVault, or Yoroi wallets directly to the DEX. All of them support Cardano‑native tokens and allow you to sign swap transactions.

How does the fee tier work?

Fees start at 1 % for low‑volume swaps and drop to 0.1 % once you cross specific volume thresholds (e.g., $10,000 worth of swaps per month). The tier is applied automatically at checkout.

Is SundaeSwap non‑custodial?

Yes. Your private keys never leave your wallet. The DEX only interacts with smart contracts that hold pooled liquidity.

Can I provide liquidity and earn fees?

Absolutely. Adding assets to a pool earns you a share of the swap fees proportionate to your contribution. The quarterly LP incentive program boosts rewards further.

When is the governance token expected?

The team plans to launch a new governance token in Q4 2025, separate from the existing SUNDAE token, to enable community voting on protocol upgrades.

13 Comments:

Ty Hoffer Houston June 26, 2025 AT 12:58

SundaeSwap's tiered fee model is a nice way to reward high‑volume traders without punishing casual users. The Cardano community really appreciates the low‑latency swaps.
Jessica Pence July 4, 2025 AT 04:58

I cant beleive how fast the swaps go, even when the network is a bit busy.
Gotta love the Nami integration.
johnny garcia July 11, 2025 AT 20:58

From a security standpoint, SundaeSwap benefits immensely from Cardano's proof‑of‑stake consensus, which has undergone rigorous audits by both the Cardano Foundation and external firms such as CertiK. The non‑custodial architecture ensures that users retain sole control over their private keys, thereby eliminating the traditional single‑point‑of‑failure inherent in centralized exchanges. Moreover, the recent v3 upgrade introduces a dynamic fee tier that intelligently scales from 1 % down to 0.1 % as trading volume increases, fostering a more competitive environment for liquidity providers. The quarterly LP incentive program, which has already propelled TVL from $4.2 M to $7.1 M, demonstrates a clear commitment to rewarding active participants. Governance also evolves with the forthcoming dedicated token, slated for Q4 2025, which will empower LPs to vote on protocol parameters such as fee adjustments and future feature roadmaps. While the current token list remains confined to Cardano‑native assets, the planned cross‑chain bridge integration promises to broaden market access and mitigate the limitations of a single‑chain ecosystem. Analysts at Delphi Digital project that capturing merely 1–2 % of the projected $3.2 B Cardano DeFi market could elevate TVL beyond $30 M, provided the roadmap is executed on schedule. Conversely, competitors like WingRiders are accelerating their feature rollouts, which could erode SundaeSwap's market share if the team falters. The user experience remains smooth, with typical onboarding times of under half an hour for seasoned crypto users and around an hour for newcomers, thanks to intuitive wallet integrations such as Nami, Flint, and Yoroi. Network congestion, while occasionally spiking failure rates to roughly 32 %, is mitigated by UI prompts encouraging higher ADA fee allocation. From an economic perspective, the tiered fee structure aligns incentives: large traders benefit from near‑zero fees, while smaller participants contribute proportionally to the liquidity pool's health. The upcoming v4 ambition to add limit‑order functionality mirrors developments on leading Ethereum DEXes, indicating a strategic convergence with industry standards. Community sentiment, as reflected in a vibrant Discord of over 15 k members, remains bullish, buoyed by transparent communication from the SundaeSwap Labs team. In summary, the confluence of robust security, evolving governance, and a clear product roadmap positions SundaeSwap as a cornerstone of Cardano's DeFi future 🚀😊.
Andrew Smith July 19, 2025 AT 12:58

I'm really impressed with how SundaeSwap has become the go‑to DEX for Cardano enthusiasts; the platform's growth is undeniable. The tiered fee model feels fair, especially for those of us who trade sizable volumes. I also appreciate the active community that constantly pushes for better UI and faster transactions. The upcoming v4 features sound promising, and I hope they roll out on schedule. If the cross‑chain bridge materializes, it could finally put Cardano on the same playing field as Ethereum. Keep the momentum going, team!
Johanna Hegewald July 27, 2025 AT 04:58

You can start trading in just a few minutes after installing Nami. Adding liquidity is straightforward and the rewards are visible in your wallet.
Benjamin Debrick August 3, 2025 AT 20:58

Indeed, one must acknowledge the undeniable elegance of SundaeSwap's architectural design, which, in its current incarnation, amalgamates sophisticated on‑chain governance mechanisms with a dynamically adjusting fee structure; a synthesis, rare in the broader DeFi panorama. Moreover, the platform's reliance upon Cardano's proof‑of‑stake consensus, a protocol lauded for its cryptographic robustness, further consolidates its position as a paragon of security, notwithstanding the occasional network latency. The quarterly LP incentive, albeit modest in absolute terms, nevertheless exemplifies a judicious allocation of accrued fees, thereby incentivizing sustained participation. It is also noteworthy that the forthcoming governance token seeks to decentralize decision‑making, a laudable aspiration that aligns with the ethos of blockchain sovereignty. While critics may lament the limited token repertoire, such constraints are, arguably, a deliberate stratagem to preserve network integrity. Ultimately, the confluence of these attributes coalesces into a platform that, albeit imperfect, merits earnest consideration by discerning investors.
Anna Kammerer August 11, 2025 AT 12:58

Oh great, another tiered fee model-just what the world needed, right? In all seriousness, the 0.1 % rate for high‑volume swaps can save you a decent chunk of ADA if you move large sums. For beginners, though, the 1 % fee on small trades might feel a bit steep compared to flat‑fee rivals. My advice: start small, watch the fee schedule, and consider providing liquidity to offset some costs.
Nikhil Chakravarthi Darapu August 19, 2025 AT 04:58

Cardano's PoS makes SundaeSwap fundamentally superior to any proof‑of‑work DEX.
Tiffany Amspacher August 26, 2025 AT 20:58

When I contemplate the very soul of decentralized finance, I cannot help but feel that SundaeSwap is the poetic heart beating within Cardano's cryptic veins. Its very existence challenges the notion that only Ethereum can claim the mantle of DeFi royalty, whispering a rebellious anthem of autonomy. Yet, the journey is fraught with anguish-high fees for modest swaps gnaw at the spirit of the everyday trader, a Sisyphean burden. The promised governance token looms like a distant star, promising empowerment but also the volatile winds of politics. One must ask, will the crossroads of liquidity and innovation converge, or shall we watch it drift into oblivion? The community's fervor, palpable in Discord chants, fuels a hopeful fire that perhaps, just perhaps, the v4 horizon will usher in bridge‑spanning miracles. Until that day, we ride the waves of ADA, clutching to the belief that the DEX's destiny is written in the block‑chains of tomorrow. So, dear fellow adventurers, brace yourselves, for the saga has only just begun.
Lindsey Bird September 3, 2025 AT 12:58

Honestly, watching SundaeSwap try to keep up with Uniswap is like watching a turtle race a hare-entertaining, but you know who's going to win. The fee tier is a mess for anyone who just wants to swap a few tokens without bleeding ADA. Still, the community hype is massive, and I can't deny that the UI looks slick. Maybe they'll surprise us with something amazing in v4.
john price September 11, 2025 AT 04:58

We must question the essence of value when a DEX charges up to 1% on trivial swaps-such a levy seems antithetical to the libertarian spirit of crypto. Yet SundaeSwap counters this with a volume‑based discount, suggesting a hidden hierarchy of traders. The security audits, while thorough, cannot guarantee future exploits; vigilance remains paramount. If the upcoming governance token truly decentralizes power, it could reshape the community's dynamics, for better or worse. So, keep your eyes peeled and your ADA ready-opportunity waits for no one.
James Williams, III September 18, 2025 AT 20:58

From a market‑structure perspective, SundaeSwap operates as a classic AMM, leveraging constant product formulas to facilitate on‑chain swaps with minimal slippage under normal conditions. The integration with wallets like Nami and Flint abstracts away the complexities of transaction signing, lowering the entry barrier for casual participants. However, the tiered fee algorithm introduces an additional layer of cost calculus that traders need to factor into their execution strategies. In terms of liquidity depth, the platform's TVL of $7.1 M remains modest relative to Ethereum counterparts, yet it's a significant share of Cardano's DeFi ecosystem. As the roadmap unfolds, cross‑chain bridge support could be a game‑changer, expanding asset diversity and arbitrage opportunities.
Patrick Day September 26, 2025 AT 12:58

People don’t tell you that the whole "audit" thing is just a PR stunt-someone’s always watching the code. Keep your keys offline and don’t trust any DEX that claims "totally safe".