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Cardano's Minswap Experiencing Issues, But Funds Are Safe

Wed, 03/23/2022 - 12:58
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Tomiwabold Olajide
Minswap is an automated market-maker (AMM) decentralized exchange (DEX) on Cardano
Cardano's Minswap Experiencing Issues, But Funds Are Safe
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Cardano's Minswap has reported detecting an issue and is presently fixing it, but users' funds remain safe. It says that while the fix is tested and deployed, the DEX remains in maintenance mode; thus, users may not be able to swap, withdraw or harvest yield farming rewards. The issue detected was not specified at press time, but the DEX promises to elaborate more in a post-mortem in the following days.

The launch of SundaeSwap, a decentralized exchange (DEX) and token-staking platform marked a milestone in the Cardano ecosystem by being the first dApp to utilize its smart contracts. The DEX got off to a rocky start as users complained about transaction speeds.

According to its white paper, Minswap is "an automated market-maker (AMM) decentralized exchange (DEX) on Cardano which supports multiple pricing functions for a single liquidity pool." Since Minswap's launch barely a few weeks ago, its TVL has skyrocketed to reach $195.22 million, usurping SundaeSwap as the most dominant DeFi protocol. Currently, Minswap dominance is at 62.88%, while the total value locked (TVL) on Cardano is at $310 million.

IOHK's steps toward scaling

In a thread of tweets, while announcing the update proposal to increase Plutus memory scripts, IOHK says that though congestion might happen on the network during peak times, the Cardano network has been designed to operate safely.

The company says: ''With the arrival of many new DeFi projects on Cardano over the weeks and months ahead, users should expect high volumes of network traffic. This may be significant at peak times around launches and large NFT drops.''

It continues, ''While users may occasionally experience delays in transactions going through, the Cardano network has been designed to operate safely at high load & throughput will steadily improve as the network continues to be optimized.''

As previously covered by U.Today, Cardano founder Charles Hoskinson, while commenting on the growth of the ecosystem, explained that many decentralized applications (dApps) are waiting for the Vasil hard fork to benefit from pipelining.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.