Updated on:12/01/2025 05:07 PM 
Dubbed the “next-generation DEX,” AdaSwap has ambitious plans to make a significant impact on the rapidly growing Cardano DeFi ecosystem.
DeFi Llama currently lists ten DeFi projects built for Cardano, of which four are inactive. A notable recent addition is WingRiders, which IOHK CEO Charles Hoskinson described as:
“one of the most exciting new DEXes to launch.”
With competing protocols gradually entering the market, and several scheduled by Q3 when AdaSwap plans to launch, the platform has its work cut out to catch up.
But what sets AdaSwap apart from its competitors?
AdaSwap positions itself as a more cost-effective and equitable Automated Market Maker (AMM) than its rivals. It aims to build a comprehensive micro-ecosystem that will attract more attention to the Cardano blockchain.
Ultimately, the team's mission is to onboard the next wave of DeFi users through a variety of use cases including liquidity pools, farming, token swapping, a new token standard, and an NFT marketplace.
“Our primary goal is to develop tools for creators and users, as well as facilitate high-yield staking pools and NFT content through our launchpads and marketplaces.”
To learn more, CryptoSlate interviewed AdaSwap COO and co-founder Aaron Tait.
CryptoSlate: With many layer 1s to choose from, what inspired you to build on Cardano?
Aaron Tait: Cardano has established itself as one of the premier ecosystems in the blockchain space and the first peer-reviewed blockchain project. Through this, Cardano has been able to develop an incredible community that has supported and helped build the blockchain over the past several years. We are really excited to tap into this community.
More than that, smart contracts went live on Cardano in September 2021, and we were very excited to be one of the first market movers to help ignite DeFi in this ecosystem.
CryptoSlate: It was announced last month that AdaSwap had secured a $2.6 million seed round. Can you tell us more about how these funds will be utilized?
Aaron Tait: As a startup and software company, AdaSwap faces all the same expenses that a startup will face such as user acquisition, operational expenses, staffing, branding, legal, marketing, etc.
The purpose of the funding was to give us runway for burn rate before generating positive cash flow from traffic to ensure the product and brand can be adequately deployed and protect the token.
CryptoSlate: Cardano's Unspent Transaction Output (UTXO) model came under fire last year as some said a single transaction/user per block capacity would limit throughput.
Although this was later dismissed as FUD resulting from looking at the model through an Ethereum transaction model lens, as someone who's hands-on with Cardano at the protocol level, can you share your insights on the UTXO model?
Aaron Tait: Developing on a new paradigm is always a challenge, with that said, we view this as an architectural challenge that must be addressed while developing on the Cardano network. Current EVM DEXes on other blockchains are working natively and it isn't a direct port to deploy them on Cardano.
To overcome the issue, until an efficient enough solution is available for Cardano, we have decided to deploy our DEX on a layer 2 solution called Milkomeda, while still developing our Cardano DEX in parallel.
CryptoSlate: A lot of Cardano DEXes have either launched or are about to launch. How does AdaSwap differentiate itself from the competition?
Aaron Tait: The current market competitors are focused on utilizing Cardano believers and fail to look towards other blockchains for attracting volume. AdaSwap was launched as a cross-chain token to create a higher level of trading volume and bring these cross-chain traders over to Cardano with attractive incentives and excellent utilities.
We also offer protocols to gain traction such as our Free Trading Protocol, where no transaction fees are charged on ASW token transactions. While our gaming and staking protocol will automatically generate an airdrop system through staking pools to help users grow their portfolios without lifting a finger.
CryptoSlate: Can you elaborate on the Free Trading Protocol and the 0% fee strategy?
Aaron Tait: The Free Trading Protocol will only be used on ASW token trades to incentivize the use of our native token. Fees will still be charged for direct trades on the DEX between tokens other than ASW.
CryptoSlate: Your roadmap states a Q3 rollout; given that delays are part and parcel of blockchain development, are you confident you'll launch on time?
Aaron Tait: No project is without setbacks, we were delighted with the launch of ADANFT, and we are on track for our Q3 launch of the DEX.
CryptoSlate: Are there plans for an ASW token airdrop? If so, what information can you share at this time?
Aaron Tait: We run airdrops frequently through our community partners on events such as AMAs or project milestones. Please keep an eye out for our next airdrop!
