Sundaeswap swap has recently released their work around for the fact that UTXO currently cannot run a permissionless, decentralized AMM DEX (Uniswap/PancakeSwap). Items of note:
-the Sundaeswap team determined that the entire Cardano chain, without any other dApps competing for resources, will have slower PEAK tx speeds than half the AVERAGE tx rate used by one dApp on ethereum. They compared cardano’s peak to the average rate on Uniswap v3 (but didn’t count v2). Cardano will have options to speed that up in the future, but they are not ready yet (see second link below). And even then, cardano will still be slower than ETH, the slowest layer one chain that anyone has ever heard of.
-They accurately explain why all the other proposed solutions create vulnerabilities, weaknesses, market inefficiency, attack vectors and centralization that Uniswap does not have
-They propose to add a novel, gated and “trusted” application-specific proof of stake layer with untested incentives (and untestable due to the lack of direct fee incentives on a testnet). They have determined that the best way to avoid the UTXO concurrency dilemma is to appoint third party aggregators to execute all of the orders, and “[t]he first step is choosing trusted members of the community to run them.” So much for having the most decentralized chain.
-They rate every solution to this problem, including their own, as requiring more development work and creating more “surface area [that] needs to be audited” than Uniswap. So much for the advantage of UTXO being easier to audit.
Meanwhile, Cardano devs are finally getting serious about starting the public conversation around why txs fees are necessary to avoid catastrophic network congestion, why cardano needs decentralized development, and the mistake of not having a longterm roadmap and pursuing layer 2 solutions sooner: