What are everyones thoughts on Sundae Swap? There seems to be a lot of hype around this so-called Initial Stake Pool offering on the 25th May.
I’m concerned that projects like this will harm stake pools as ADA will flood out of them into dApps like Sundae to earn greater rewards, therefore reducing decentralization and security of the network.
It’s just one pool among many others. If you prefer to have Sundae tokens instead of ADA and you trust them, why not.
For me, I can see several of these types of projects and people want the greatest ROI, so it could become a problem in the future.
What problem could that be? The delegators might not receive their tokens as delegation rewards - but I’m sure everyone is aware of that. Apart from that - your ADA is totally safe - as it stays in your wallet.
The staking pool itself is doing the same work as other pools and serving the network - no issue with that so far.
The problem is centralisation. If someone created a dApp tomorrow whereby you stake ADA with them to generate a guaranteed 20% ROI, how many delegators would want to stake with them?
I’m guessing quite a lot.
Agree - pool farming is a threat to decentralization. Honestly currently I’m more concerned about Binance, ETORO & co than Sundae:
It will be interesting to monitor the changes to the amount of SPOs over this year.
More or less? I guess it depends on any changes brought in which are coming I believe.