Introducing MuesliSwap – The First DEX on Cardano

• How does MuesliSwap work?
• Tokenomics
• Milk token allocation
• Token use case
• Presale Statistics
• Team
• Identify

How does MuesliSwap work?

MuesliSwap is a decentralized exchange that will work on both Cardano and Smart Bitcoin Cash. The goal of the project is to enable the exchange of tokens for anyone in a truly decentralized way. 

In the illustration below, let's say Charles wants to buy some favorite tokens, namely 10 MILK and is willing to give up to 5 ADA in return. This corresponds to him setting a limit price of 0.5 ADA per MILK. Next, he places an order at ada.muesliswap.com/swap. Charles is then entered into the decentralized order book by locking 5 respective ADAs, with some additional metadata in the MuesliSwap smart contract on the Cardano blockchain.

Now Alice intends to sell some MILK again. She wants to get at least 6 ADA in return for the 10 MILK she put on her order. And so 6 ADA is her purchase amount. Similarly, Bob places an order to sell 10 MILK but only asks for 4 ADA in return. This means that he charges a lower limit price than Alice. The order book will now look like this:

Remember, how Charles, Alice and Bob interact directly with the smart contract on the Blockchain without any third parties involved. This is also a key difference to traditional order book exchanges – where orders are sent to a central trusted coordinator, which then matches orders and executes trades. In the above case, the commands sent to the smart contract cannot actively self-coordinate. Therefore, the question arises how orders are matched and executed without the need for a third party.

And the answer is Matchmaker – the representative who observes the status of all orders currently locked in the smart contract. Once two matching orders are found, Matchmaker initiates an exchange via a smart contract, with the ability to keep the remaining profit as a fee. Muesliswap points out that the smart contract obliges such exchanges to be valid (in the sense that all parties receive their funds at the specified price). This means that Matchmaker does not act as a broker but only as an unreliable originator. Even having a single Matchmaker leads to centralization of power. Therefore, MuesliSwap also decentralizes Matchmaker. Everyone can become a Matchmaker, then contribute to the MuesliSwap exchange platform and earn incentives.

Going back to the example above: Let's say Matchmaker M1, by scanning the blockchain for new entries in the MuesliSwap smart contract. Let's first look at the top two orders in the orderbook. Obviously, these won't match as the smart contract will force Alice to receive her 6 ADA on demand but Charles only gives 5 ADA. Next, M1 looks at the top and bottom order in the order book. In this case, the limits are set in a way that makes both Charles (receives 10 MILK ordered) and Bob (receives 4 ADA ordered) satisfied. There's even 1 ADA left over from the 5 ADA Charles provided. Matchmaker may hold this spread as a reward for facilitating market trading.

Summarizing the three core points that help MuesliSwap demonstrate its decentralized nature, including:

1. Traders are registering transaction requests in a decentralized Plutus smart contract. This smart contract is designed so that user funds can only be spent as intended, eliminating the need for a third party. 
2. Matching tasks are distributed among multiple Matchmakers and are publicly accessible to anyone. Similar to Blockchain mining rewards, matched orders incentivize members to run a Matchmaker. Of course, all Matchmakers must follow the rules defined in the smart contract, in order to ensure the safety of traders' funds and the fairness of the trading order matching process.
3. The MuesliSwap website is just one of many interfaces capable of interacting with the protocol's smart contract. Any member of the community can build their own website with unique user interface features. Thereby enriching the MuesliSwap platform. Commands placed on different user interfaces will still be sent to a single MuesliSwap platform. This ensures increased liquidity, faster transaction settlement and therefore a smoother trading experience. With both the front-end and the modular Matchmaker interchangeable, MuesliSwap is, in many ways, a truly decentralized exchange protocol.

Tokenomics

Similar to the CAKE token on PancakeSwap, the MILK token is a governance token and will be used on the DEX. In a nutshell, MuesliSwap incentivizes liquidity in the DEX because using these tokens offers lower fees and it can be staking. 

Milk token allocation

The total supply is 10 million (10,000,000) MILK. The token distribution is depicted in the following chart:

The project's Tokenomics seems simple and fair compared to some other projects. The number of tokens allocated to the team is 15%, much less than some other projects in the Cardano ecosystem.

Token use case

MILK tokens are used to:

• Preferred Trading: Access to Exclusive Exchange Features
• Governance: Vote on community recommendations
• Staking: Join MILK pools and earn some rewards
• Early Access: Get early access to MuesliPad (launchpad)

Presale Statistics

The Presale ended ended Tuesday, 11/30/2021 at 14:00 UTC, with 5,000,000 MILK to the Cardano community. The next stages will have the expected price as shown below.

Team

Team MuesliSwap currently consists of seven people and is based in Switzerland. Six of them are core team. All team members are highly qualified and trained computer scientists in cryptocurrencies. 

The team has many years of experience in Haskell development and advanced algorithms design. This lays the groundwork for the innovative MuesliSwap protocol, which aims to make MuesliSwap an essential part of the Cardano ecosystem. Team MuesliSwap is currently running a successful DEX on the smart Bitcoin Cash blockchain. This makes them one of the most experienced DEX teams in the Cardano ecosystem.

On its website, MuesliSwap says it is currently protecting the privacy of the team, avoiding personal attacks. Maybe they will consider revealing the identity of the team officially in the near future.

Identify

Overall, MuesliSwap aims to enrich the Cardano Defi ecosystem with a host of new trading features, not limited to token trading but also an NFT marketplace…

Transactions on MuesliSwap are paid out quickly combined with low fees. Therefore, the project is considered to have breakthrough prospects.

You can learn more about the project here: Website | Twitter | Discord | Telegram

• Thailand will introduce the first "virtual bank" in 2025
• Binance US Introduces New Staking Platform With Attractive Profits