# Hello! MuesliSwap [MuesliSwap](https://muesliswap.com/) is the first decentralized exchange on Cardano, providing the Cardano community with a smart contract-powered trading platform since November 2021. ## What is a decentralized exchange? Muesliswap is a decentralized exchange that allows you to trade crypto assets (tokens, NFTs) on the blockchain. It is similar to a stock exchange, where assets are traded between participants. Yet there is a key difference: Anyone, not just market makers, can provide liquidity in the form of liquidity pools! Moreover, the project is completly decentralised. This means that we are only developing a decentalized protocol but are not involved in any of the trading aspects. ## How can I trade tokens on Muesliswap? The good news is that trading tokens is really easy! Still, there is some initial setup that you will need to do. First, you will need a crypto wallet that supports dApps. Check out [Cardano Wallets](/cardano/cardano-wallets) for details on the setup. Second of course, you will need to have some crypto in this wallet, otherwise there wouldn't be anything to trade, right? Ready to start? Check out our getting started guide here: {% content-ref url="/pages/-MjoO5DBMAvQpShBF54u" %} [Introduction](/cardano/introduction) {% endcontent-ref %} # Introduction MuesliSwap is a decentralized exchange (DEX) on the Cardano blockchain that enables you to trade Cardano native tokens. Backed by a newly developed token swapping protocol, MuesliSwap aims to become the go-to DEX on Cardano. MuesliSwap uses a hybrid trading model with an on-chain order book connected to liquidity pools, providing crypto traders with features like limit orders. In this model, there is no central order matching authority. Instead, order matching is incentivized and can be performed by anyone, subject to rules fixed in a smart contract. ### MuesliSwap in 30 Seconds MuesliSwap distinguishes two types of users, traders and matchmakers. * Traders place orders (buy or sell) using the web interface. An order is simply a transaction offering to buy or sell a certain token at a certain price. Upon confirming the trade with a Cardano wallet (such as Nami), the order is locked in a smart contract on the blockchain as a [EUTxO](https://docs.cardano.org/learn/eutxo-explainer). * A matchmaker constantly scans the blockchain for open buy and sell orders. When such matching orders are found, the matchmaker executes a transaction, fulfilling the order and sending the assets to the respective parties. For this, the matchmaker obtains a small fee. Orders can also be fulfilled using liquidity from liquidity pools. The orders are locked in a smart contract in the form of an UTxO, and can be unlocked by matchmakers only for a trade that satisfies the trader's demanded limit price. An order may be partially filled, resulting in a new order that buys or sells the remaining token amount. A pending order may be canceled at any time by its creator, unless it has been completely filled already. If it has been partially filled, a cancel retrieves the remaining order and the part of the order that has been filled already. ### More details We have created an exhaustive blog post about the detailed trading concepts of MuesliSwap on Medium, check it out here: More details can be found in our white paper outlining the MuesliSwap Cardano DEX: ### **Looking to get started trading? See the trading guide:** {% content-ref url="/pages/T5gbVt6xVtbEUJu2zQhO" %} [Orderbook](/cardano/orderbook) {% endcontent-ref %} You can read more about the MuesliSwap protocol [here](broken://pages/Y7JiwIl1y7M2khWy4gYd). # Cardano Wallets ## 1. Installing a wallet In order to trade on MuesliSwap, you will need a Cardano wallet that supports dApps. \ All light wallets which follow the [CIP-30 specification](https://cips.cardano.org/cips/cip30/) should work out of the box.\ The following light wallets are officially supported: 1. [Nami](https://namiwallet.io/) 2. [Eternl Wallet](https://eternl.io/app/mainnet/welcome) 3. [Flint Wallet](https://flint-wallet.com/) 4. [GeroWallet](https://gerowallet.io/) 5. [Eternl Wallet](https://chrome.google.com/webstore/detail/ccvaultio/kmhcihpebfmpgmihbkipmjlmmioameka) Note that you will need to use the browser plug-in version of the wallet. Also note that hardware wallets (Trezor, Ledger) are not supported yet. You can also use the Eternl mobile app to interact with a dApp on your mobile device. There are multiple other mobile wallets out there, and alternatively you can also use mobile browsers like [Kiwi browser](https://kiwibrowser.com/) or [Yandex browser](https://play.google.com/store/apps/details?id=com.yandex.browser), which allow the installation of chrome extensions like wallets on mobile devices. ## 2. Connecting your wallet After installing one of the wallets, your wallet needs to be connected to MuesliSwap. 1. Press the "Connect Wallet" button in the top-right of the website (see *Fig.1)* 2. Select one of your installed wallets (see *Fig.2*) ![](/files/NDp6FL2MU10bBIXE035S) ![](/files/8wVKBzMlgWfGHguNaeQt) Now you are ready to place buy and sell orders. Congratulations! **Note:** In order to connect with Eternl, you need to activate one wallet as a dApp Account (starting from version 1.4.1) ![](/files/iWJgbPndsxuiI6eaEgZy) ## 3. Adding collateral To interact with smart contracts on Cardano, you need to set a "collateral" amount.\ This collateral will remain in your wallet, but might no longer be displayed as spendable.\ Some wallets support collateral by default (e.g. Nami and Gero), while for others we added this functionality to our page (e.g. Eternl). You can always get your collateral back! It's not locked there forever. ### Nami 1. Click your user icon, to show your wallet settings 2. Click on "Collateral" 3. Enter your password, the collateral will be deducted from your wallet ![](/files/YzNWqJWuj2bxWpWm1DFP)![](/files/FctG45aQEpNBuTMgxCT1) ### Gero 1. Click on "Account" 2. Click on "Collateral" 3. Click on "Deposit Collateral" 4. Enter your password ![](/files/FC39fwGpkqQ0jaF4hv2e)![](/files/V0ynGRF9roUWzYZ3WPte) ### Eternl CCVault supports Collateral starting from v1.4.1 directly within the wallet. To set collateral please go to CCVault. In CCVault select your wallet and go to the wallet specific settings. In the settings menu please enable the option collateral and set collateral if needed. 1. Select your dApp Account 2. Select the tab "Settings" 3. There you will find the option "Collateral". Enable it. 4. Press "Set Collateral" in case that no collateral is displayed. ![](/files/gjMWxwjlSehuFLFcfHmY) Older versions of CCVault don’t have the notion of Collateral, instead the interacting website has to make sure that the wallet is smart contract ready.\ We will ask you to press a button on the ["My Orders" page](https://legacy.muesliswap.com/orders) in case your wallet is not already smart-contract-ready. ## 4. Full Disconnect In case you ever want to revoke the wallet access rights of the site, you can disconnect by following one of the guides for your wallet below or alternatively fully uninstall the wallet extension. ### Nami 1. Open Nami & click on your profile picture in the top-right corner 2. Click on "Settings" 3. Go to "Whitelisted sites" 4. Click the small cross to the right of "ada.muesliswap.com" ![Step 1 & 2](/files/RhrIMawVZqWyd0YH0754) ![Step 3](/files/PI1X6eL7EkE8aHk3fKWj) ![Step 4](/files/ykFZapIzkpeDBJ5EQRCu) ### Gero 1. Go to [ada.muesliswap.com](https://ada.muesliswap.com) & open Gero wallet by clicking on its icon. 2. Click the small green circle in the top-right corner \ (If it is not there press the green circle in the top-left corner first for it to appear) 3. Click "Disconnect" ![Step 2 & 3](/files/YhKoVbh5xwOecikgAhVQ) ### Eternl 1. Click on the ccVault icon 2. Click on "Settings" in the bottom-left of your window 3. Open the "Whitelisted dApp Sites" category 4. Click the red trash-can to the right of "" ![](/files/k6tPGDMJA2XJVZdkSUf7) ## 5. FAQ **Question:** I bought tokens with my Nami Wallet, but I received collectibles?\ **Answer:** Nami wallet has a display bug, where tokens could be displayed as collectibles. By hovering over the collectible, you will see the amount of token you received. You can double check on [pool.pm](https://pool.pm/) or by using another wallet that you have indeed received the correct amount of tokens. **Question:** I am trying to place orders with my Hardware Wallet (i.e. Ledger) but the order fails!\ **Answer:** Hardware wallets like ledger do currently not support interactions with Smart Contracts. Please consider creating a Software Wallet, to which you can send small amounts for trading. **Question:** Is there any mobile wallet support?\ **Answer:** We are not aware of any mobile wallet with dApp support. Using browsers like [Kiwi browser](https://kiwibrowser.com/) or [Yandex browser](https://play.google.com/store/apps/details?id=com.yandex.browser), some wallet Chrome extensions like Nami can be used on mobile devices. # Token Listing Every Cardano Native Token can be traded on the MuesliSwap platform. {% hint style="info" %} Every Cardano token is uniquely identified by 2 values: *policy id* and *token name*. {% endhint %} Tokens listed on the MuesliSwap platform typically have one of the following tags:\ *Verified, Unverified, Scam, Outdated, Onhold* We do not closely moderate unverified tokens, so we encourage users to do due diligence on tokens that are marked as *Unverified*. Tokens marked as *Outdated* or *Scam* should be traded at your own risk! This means that the team has identified that the project has either migrated to a new token (*outdated*) or the project/token is a scam. Trading will only be stopped for tokens marked as *Onhold*. ### Verifying validity of a token Always DYOR and compare the policy ID of the token with the policy ID of the project's official homepage. ![The policy ID of a project shown on a projects official website.](/files/WJ7v2hWf5oTQdoWfiiKi) ![The Policy ID of a token as displayed on Cardano Scan](/files/Q6E46S58LNnY1ZvBMcnX) ### Adding new tokens Everyone can add a new token for trading on MuesliSwap, however any properly registered Cardano Native Asset should be tradeable within a day of registration. Therefore the following is only relevant for token creators: You will be needing the *policy ID* and the *name* of the token that you want to add. This information is usually displayed on a project's homepage. You should double check the information with Cardanoscan. ![](/files/myrNj7rjZ698eOac9b31) We recommend registering your token with the [Cardano Token Registry](https://github.com/cardano-foundation/cardano-token-registry). They have a written step-by-step [guide](https://developers.cardano.org/docs/native-tokens/token-registry/how-to-submit-an-entry-to-the-registry/) to follow along. This will list your token automatically on Muesliswap and will also ensure valid metadata (decimal places, icon, description, homepage, etc.) as provided by you. In case you are a token creator but don't plan on listing your token in the Cardano Token Registry, you can also list your token via our website.\ We do *not* recommend this, as alternatively, the metadata of a token is used. The intention behind this is primarily to support NFTs, that usually store their metadata in the on-chain metadata after minting. This information is used by MuesliSwap to list NFTs.\ Therefore your token will likely only have a *policy ID* and *name*, and will be missing out on support for decimal places and all the other metadata introduced with the Cardano Token Registry. In case this is fine for your token, here is how to proceed: * Go to * Enter the policyId and tokenname in the corresponding fields * Click List New Token, this will place a transaction, causing the token to be listed without requiering a CTR entry # Token Verification ### Tokens By removing the "Only verified" filter on the markets page it is possible to trade **any** token on Cardano **without** being verified. However, verification will give you more visibility and increase the trust of the community.\ To account for processing each verification manually and to prevent people from spamming requests we require a verification fee of **50 ADA**.\ Additionally tokens that want to be verified have to be registered in the [Cardano Token Registry](https://developers.cardano.org/docs/native-tokens/cardano-token-registry/). ### How can I get verified? Submit a Pull Request to the following repository: {% embed url="" %} The verification requires the following steps, which are explained in greater detail in the Github repository. 📄 A correct JSON token description of the token \ 🖼️ An image for the token \ 💸 A comment, with the transaction id showing you submitted 50 ADA Note that there are specific minimum requirements to get verified, such as: 🌐 A website\ 📝 A token description \ 📊 Tokenomics\ ✉️ Contact information (e.g., twitter, email) If you do not know how to implement these, check out our MILK token or contact us. Upon receiving the verification request, we will perform some due diligence, such as checking the minting policy of the token, to make sure the token can't be rug pulled. Note that this does not imply any legal responsibilities from the team towards verified tokens. Please note that a token being verified doesn’t guarantee that it will be listed on the featured page. Moreover, the team has the possibility to reject a token during the verification process in which case we will refund you 40 ADA of the verification fee. If you are a charitable project please leave a comment in the pull request and we will consider waving the 50 ada fee. Please open a Github issue if you have any questions our team is here to help! ### NFTs For verification of NFTs we recommend submitting a Pull Request at the [CNFT-NFT repo](https://github.com/Cardano-NFTs/policyIDs). Our dApp automatically verifies policy IDs based on the policy IDs that have been accepted by the CNFT.io team. # Creating a Pool If you want to create a pool for your token, you can do so by following these steps. Note that currently, in order to protect users, you can only provide liquidity to pools with verified tokens. Please note the **minimum amount of ADA to send is 6 ADA.** *Note: This is an intermediate mechanism for early adopters. We are working on a smooth frontend utility for this.* For pool creation you need to submit the following * The tokens that you want to provide as liquidity * The ADA equivalent of the token * 4 ADA (of which all but the fees will be returned) Submit tokens + ADA equivalent + 4 ADA to this address: `addr1vxed8f0jlnntvtqcy42xn9c4tpcc8w6xrfh9unj7pyxse5c6g4gj8` Please check that the mentioned addresses previous transactions are pool creation. # Fee Structure At MuesliSwap, we are devoted to offering a service with transparent and low fees. The table below shows an overview of the current fee structure used in the MuesliSwap frontend.. A small fee of 0.95 ADA is taken to cover the network costs and to incentivize decentralized matchmakers when matching a transaction. This fee will also be returned, when you cancel an order through our website. Moreover, we are taking a very small frontend fee As promised, MILK has very direct utility on MuesliSwap: That’s why MILK holders will enjoy discounted fees! If you hold at least 100 MILK in your trading wallet, you will enjoy reduced trading fees on the frontend fee. A more detailed overview on possible fee reductions can be seen below.
Required holdingsFrontend FeeSavings
0+ MILK1 ₳ + 0.050%0%
100+ MILK1 ₳ + 0.035%30%
500+ MILK1 ₳ + 0.030%40%
1000+ MILK1 ₳ + 0.025%50%
2000+ MILK1 ₳ + 0.020%60%
5000+ MILK1 ₳ + 0.015%70%
**Example:** If you have 500 MILK in your wallet and you place a 1000 ADA order you will pay the following frontend fee: *1 + 1000 \* 0.030% = 1 + 0.30 = 1.30 ADA* frontend fee. In addition, we attach 0.95 ADA to the order that are an incentive to decentralized matchmakers and pay for Cardano network fees.
# Orderbook In this guide, you will learn how to get started trading Cardano tokens via the Orderbook feature on MuesliSwap. If you'd like to get a better understanding of the technology behind the MuesliSwap order book, we recommend reading [this blog post](https://medium.com/@muesliswap/muesliswap-presents-the-protocol-powering-cardanos-first-dex-3db25a844245). If you want to even better understand the rationale behind these mechanisms, please refer to our [white paper](https://ada.muesliswap.com/whitepaper.pdf). If you want to play around with the DEX without spending any ADA, check out [the development version of the DEX](broken://pages/et7yCr3sS9O5fw8eS071) that is publicly accessible and running on testnet. 📘 New to Cardano? Make sure you're well informed before using dApps! You can learn more about the Cardano blockchain and the main ideas behind it on its official website: [https://cardano.org](https://cardano.org/) ### Installing a Cardano wallet In order to trade on MuesliSwap, you will need a Cardano wallet that supports dApps.\ Check out our [Wallets](/cardano/cardano-wallets) guide on [How to install](#installing-a-cardano-wallet) and [How to connect](#installing-a-cardano-wallet) a wallet. 💡 A wallet is simply an application that holds your funds. When you create a new account, your wallet will assign you a Cardano address (similar to bank account number), and a secret key that you can use to access your funds. Needless to say, keep your key hidden in a safe place! 💸 To use the Cardano blockchain, you will need the ADA cryptocurrency. To fund your wallet, you can simply send ADA from any of the reputable centralized exchanges to your new address that you've just created. See for example: [Kraken](https://www.kraken.com/learn/buy-cardano-ada), [Coinbase](https://www.coinbase.com/how-to-buy/cardano), [Binance](https://www.binance.com/en/buy-cardano) You can only cancel or edit orders if you have set a collateral, so make sure you check out our [guide](https://docs.muesliswap.com/cardano/pages/sOFRZyG2yYpxLqjiON3Y#3.-adding-collateral) on how to do that. \ As the procedure is a bit different for each wallet please check the wallet specific descriptions: [Nami](/cardano/cardano-wallets#nami), [Gero](/cardano/cardano-wallets#gero), [Eternl](/cardano/cardano-wallets#ccvault) ### Placing a trade It is very easy to trade tokens on MuesliSwap! First, head to the trading interface at and find the token you wish to buy or sell under Markets. Clicking on the token entry will open the trading interface, where you can place buy/sell orders and see token information, price data and open orders. After entering your desired token amounts, you can click the "Swap Instantly" button to trade. As soon as your trade is submitted to the blockchain and fulfilled by a matchmaker, you will receive your assets in your wallet. To learn more about how this works, see [Concepts](/cardano/introduction#more-details). Placing a trade incurs a small fee to cover costs for both the matchmakers and the frontend providers. You can save fees by buying [MILK](/cardano/tokenomics/muesliswap-milk). More details on the fees can be found in the [Fee Structure page](/cardano/fee-structure). As soon as your order has been registered on the blockchain, it will appear on the [Open Order ](https://muesliswap.com/wallet/orders)page. You can also inspect your order history on the [Order History](https://muesliswap.com/wallet/orders-history) page! ### Cancelling a trade You can see a list of your outstanding orders under the "My orders" tab in the menu. These orders can be cancelled at any time, simply by opening the order detail and clicking on "Cancel". The input assets will be refunded to you immediately. In case your order has been partially filled, you will receive remaining assets of the open order and all assets that have been filled already. To cancel, your wallet has to be made smart contract ready. Please refer to the [wallets page](/cardano/cardano-wallets) for more information on how to check and set your collateral. **Tip:** Sometimes cancellation fails even when the collateral has been set. In most cases, it helps to reload the browser window and to reset the collateral. Please also make sure that the correct wallet is connected. If that doesn't help reach out to us for help by Telegram, Twitter, Discord or email. ### Retrieving ordered tokens The tokens you ordered are delivered directly to your wallet upon being fully matched. There is nothing you need to do in order to retrieve them! In case you want to retreive a part of your order before it has been fully matched, you need to cancel the order or change its limit. You can see whether your order has been matched in the MuesliSwap Order History and in your Wallet history. ### Frequently asked questions **Question:** How does your DEX work? Is there a high level description? **Answer:** We created an exhaustive blog post to the trading concepts of MuesliSwap on Medium, check it out here: \ More details can be found in our white paper outlining the MuesliSwap Cardano DEX: **Question:** Why doesn't my order get matched? **Answer:** First of all, note that MuesliSwap is an orderbook-based exchange, meaning unlike with liquity pool based exchanges, orders are pending *until a accordingly priced matching order is found*. This means if you choose your buy price to high compared to what sell prices are currently available on the market, your order will not find a match. A second point is that in the current version of our protocol, *the result of partial matches stays in the contract.* That means you have to check the list of open orders to see the current state of your order. **Question:** What happens to my ADA / tokens when I place a trade? **Answer:** Being a decentralized exchange, MuesliSwap does not hold any assets. Instead, these are stored on the blockchain and protected by a validator script. The assets may only be unlocked if certain conditions are met. These are: a) the trade succeeds, and you get the ordered value, or b) the order is canceled by you. **Question:** I can not cancel my order! What is happening? **Answer:** There can be several reasons an order can not be canceled. First, make sure that your wallet is smart contract ready . Also, it may be necessary to try several time before the order works. Or, the order has been matched already, in which case you should see the received funds in your wallet. If you have already put a collateral and canceling did still not work, try removing it and setting it again. If it did not work after some attempts, please reach out to us. **Question:** I bought tokens with my Nami Wallet, but I received collectibles? **Answer:** Nami wallet has a display bug, where tokens could be displayed as collectibles. By hovering over the collectible, you will see the amount of token you received. You can double check on [pool.pm](https://pool.pm/) or by using another wallet that you have indeed received the correct amount of tokens. **Question:** What fees are being paid to use the service? **Answer:** The main amount of funds sent to the contract is the amount of token you want to sell or the amount of ADA which you are willing to spend on tokens. This is accompanied by 1.5 ADA, which is the minimum amount of ADA in any transaction on the Cardano network. An additional 0.6 ADA are sent to reward matchmakers for matching your order and to cover Cardano network fees. There is also a small frontend fee for server maintainance and development cost, explained in more detail on the [Fee Structure page](/cardano/fee-structure). **Question:** Can MuesliSwap access my wallet? **Answer:** No. When you place an order, this is done entirely in your browser and has to be signed by your wallet. We do not receive any data. Note: never share your private keys with anyone! **Question:** Are there any risks involved in trading ADA/tokens? **Answer:** As always, investing comes with certain risks. When you buy an asset, is value may increase or decrease over time, which may result in gains or losses. As a rule, never invest more than you are willing to lose. # Network Load The load of the Cardano network can have consequences on your trading experience. This means that during heavy network load placing, modifying, matching and cancelling orders may take longer than usual. If you are faced with error code 2 please retry after a few minutes. Most likely a previous transaction is still being processed. **Note:** It may happen that after placing a transaction nothing happens. This is due to the network load - it might take some time before the transaction appears and gets processed. This also depends on the wallet used. **Tips for trading under high load** Under high load, submitting a transaction to the cardano network might takes several minutes or even fail completely. Below are some suggestions to cope with the situation 1. **Use your own node**, where your wallet permits it. Each wallet uses its own cardano node to submit transactions to the network. Under high load, these nodes can become slow and overloaded. Set up your own node and configure your wallet to use your own node to circumvent the problem (i.e. Nami offers this functionality) 2. **Place orders slightly below/above market price.** This incentivizes other users to place matching orders. Even for existing matches, matchmakers prefer orders with a small margin! 3. Use the **limit change rather than the cancel button** when changing an open order. This way, you will only have to wait for one transaction to be submitted to the cardano network, rather than two. 4. **Split your tokens among several UTxOs**. Each order placement consumes one or more utxos and creates new ones in your wallet. If you have your tokens split among several small UTxOs, you can submit a new order using unused UTxOs rather than waiting for the new UTxO of a preceding order to be created. # Swaps (AMMs and LPs) Next to its orderbook trading features, MuesliSwap also has functionality to trade against liquidity pools. These liquidity pools have the benefit of high liquidity, which is supplied by users in a decentralized manner. Read on to learn how to place orders against liquidity pools using the MuesliSwap Swap feature. # Instant Swap Next to its orderbook trading features, MuesliSwap also has functionality to trade against liquidity pools. These liquidity pools have the benefit of high liquidity, which is supplied by users in a decentralized manner. There are different (and an increasing number of) DEXs that support trading via liquidity pools. Finding the best price is not always easy and may take a lot of time. Over MuesliSwap you can always get the best price, from whichever DEX on the Cardano blockchain. In Instant swap, we find the cheapest prices on Cardano for you by aggregating all DEX protocols! **How does it work?** Simply head to our [markets page](https://muesliswap.com/markets), select the pair you want to swap, and our aggregator will take care of the rest! You can always see the protocol which currently offers the best price, as well as the estimated swap price and associated fees. ![](/files/lNyuZjC9vLDcbbqD8DHO) Note that this feature allows you to trade at the best price currently available. If you want to have a swap executed once a given price limit is reached, read on about Limit Swaps. # Limit Swap Using the MuesliSwap Limit Swap feature, you can place limit orders against liquidity pools. As soon as the price in the pool matches your specified limit, the order will be executed. You don't need to hit enter at the right price anymore! Just add your limit swap order and relax. **How does it work?** 1. Open the [trading page](https://muesliswap.com/swap) and select "Limit" in the top of the swap dialog. 2. Select the token pair you want to trade. 3. Insert the amount of token you want to sell, or receive. 4. You may now change the amount of token to receive or the price at which to swap by inserting your desired price/ received tokens. 5. Choose a pool to place the trade against. Your order will only be executed once this specific pool reaches the price you choose. Therefore, carefully consider which pool you want to trade with. You may want to take into account the Total Value Locked (lower = more price fluctuation, higher = less price impact), the current market price, fees etc. 6. Hit "Place Limit Order". This will open your wallet to construct a transaction as requested by you! ![](/files/AygLNnYVGEMzhISS5K8E) # Liquidity pools 101 We are happy to announce that liquidity pools are now a part of MuesliSwap's Hybrid DEX. This page aims to explain the concept of liquidity pools from user's perspective in simple terms. Please note this is not investment advice. {% hint style="info" %} We recommend that liquidity providers familiarize themselves with the following concepts before interacting with liquidity pools. {% endhint %} Let's say Alice wants to buy 1 ADA for BTC at the current (market) price. In a traditional market, there needs to be a second trader, Bob, who is willing to sell this 1 ADA to Alice. This allows Alice and Bob to "meet in the middle" and find a fair price for 1 ADA. *This is the orderbook model.* However, it could happen that at the moment there is no one selling their ADA and thus Alice can't trade it either. This problem can be solved by introducing a *liquidity provider*. The liquidity provider owns a certain amount of ADA and BTC available for trading. He or she then uses it to act as a counterparty to Alice's trade. The liquidity provider charges a slightly higher price for buying ADA than for selling it, earning a small profit on every transaction. #### Liquidity pools enable trading on blockchain In off-chain finance, the role of liquidity provider is traditionally fulfilled by financial institutions. **Liquidity pools** (LPs) are a way to democratize this role on the blockchain. In principle, a liquidity pool is a smart contract that holds tokens A and B. Without going into technical details, for this model to work, the liquidity pool is programmed to follow a simple rule: the ratio of token A to token B in the pool determines the price of A/B. Anyone can provide their tokens ("liquidity") to the pool in the current ratio. A liquidity provider then owns a **share of the pool**. Alice can now trade ADA/BTC against the liquidity pool - e.g. by depositing x BTC, the smart contract lets her withdraw the equivalent value from the pool, y ADA. Because the ADA/BTC ratio in the pool has changed, this also changes the pool price offered to the next trader. #### Providing liquidity may lead to profits or losses The smart contract also charges a small percentage of each trade as a **transaction fee**, adding the fee amount to the total pool amount. The total amount of tokens locked in the liquidity pool will therefore slightly increase, resulting in a profit for liquidity providers. *The higher the trading volume, the more liquidity providers earn on transaction fees.* When a provider decides to **withdraw** their liquidity, they will get back their share of the pool (tokens A and B). If transaction fees have added more tokens into the pool, the provider will have made a profit. However, if the price of A/B has changed, the provider will have made a loss compared to the situation if they had kept the tokens A and B in their wallet the whole time. The more the price changes in either direction, the less resulting total value the provider gets back. The *bigger the price change in any direction, the more liquidity providers lose on this so-called "divergence loss", or "impermanent" loss.* *You can learn more about the risks of divergence loss in this article:* \ [*https://pintail.medium.com/uniswap-a-good-deal-for-liquidity-providers-104c0b6816f2*](https://pintail.medium.com/uniswap-a-good-deal-for-liquidity-providers-104c0b6816f2) #### The math of providing liquidity The main concept of providing liquidity is that transaction fee gains should outweigh divergence losses. For volatile token pairs, it might make more sense to add liquidity into a pool with a higher transaction fee to make a profit, whereas for stable token pairs, it might make sense to choose a liquidity pool with a lower fee, where the transaction volume is higher. Before providing liquidity, it is useful to estimate both potential gains based on the pool's volume, and potential losses based on the tokens' volatility. The resulting profit or loss is then a sum of these two percentages. For the latter, one can use an online tool such as: **Liquidity Pools on MuesliSwap** For security reasons, the creation of liquidity pools is currently permissioned. If you want to create a new liquidity pool for your token, please feel free to reach out to us. A list of all available liquidity pools can be found at: \
**Add Liquidity** To add liquidity for a token pair, press the "Add Liquidity" button for the relevant liquidity pool. ![](/files/CIhSvZgJb48VjeUrjKhT) 1. Click "+ Add Liquidity" 2. Select the amount of one of the tokens you want to provide 3. The amount of the other token is automatically determined by the current price in the liquidity pool. 4. Click "Add Liquidity" and confirm your inputs. Your share in the liquidity pool is represented through liquidity pool tokens (LP tokens). When adding liquidity, you will receive your liquidity pool tokens back in a separate transaction in a few seconds to minutes. You can track your open transactions in "Open orders".
**Your Liquidity Positions** After connecting your wallet, you can see your open liquidity positions by clicking the "My Earnings" button. On this overview page you also have the option to remove the liquidity that you have previously added. ![](/files/sIbo2uaukgN2JTWWmFrY) **Remove Liquidity** ![](/files/LqCCFVpvClajo1JtSnyr) When removing liquidity, you can select what part of the provided liquidity to remove from the pool. When clicking the "Remove Liquidity" button, you will receive your tokens back in a separate transaction. You can track your open transactions in "Open orders". # Concentrated Hybrid Model (CHM) In addition, to the standard AMM pools you can also find concentrated pools that we introduced as the CHM. Our detailed report on this model and it's inner workings can be found here: **Quick summary. What is the CHM?** The concentrated hybrid model is a new DEX paradigm introduced on Cardano that combines an orderbook with concentrated liquidity pools. (CLPs). Concentrated liquidity pools let liquidity providers (LPs) choose the exact price range where their funds are active, rather than spreading liquidity across all prices. This makes capital more efficient: the same funds can earn more fees if prices trade inside the chosen range. On MuesliSwap, concentrated pools run on Cardano’s eUTXO model and connect directly to the on-chain orderbook. Each pool is tied to a token pair and a fixed price range. Many pools can exist for one pair, each covering different ranges. When users trade, the system can route across multiple pools that overlap the current price to get a better fill. What does this mean for traders? * You swap tokens against pools covering the current price. * Orders can be matched across several pools to improve execution. * Partial fills are supported; you always receive what the transaction proves on-chain. What this means for LPs * Provide liquidity only where you expect trading to happen (your chosen price range). * Earn a higher share of fees if the market stays inside your range. * You can open several positions (pools) with different ranges to cover wider prices. How it works at a high level * Pools: Each pool is one UTxO with a pool NFT and a fixed price range. * Deposits/Withdrawals: LP tokens (“LP coins”') represent your share of the pool. Deposits and withdrawals are batched on-chain to save fees. * Swaps: Swaps respect the concentrated constant-product rules for the pool’s range. Fees remain in the pool, increasing its value for LPs. When to use concentrated pools * If you have a price view and want to focus your liquidity for more fee income. * If you want fine control (multiple ranges, different widths) instead of a single “all-prices” AMM. Notes * If price moves outside your range, your position may stop earning fees until you adjust the range * All actions (orders, deposits, withdrawals, swaps) are validated on-chain; transaction costs apply. # Using the CHM A user-guide on how to use the CHM (Concentrated Hybrid Model) and providing liquidity to our concentrated pools The **Concentrated Hybrid Model (CHM)** lets you provide liquidity in a smarter way. Instead of spreading your funds across all possible prices, you choose the **price range** where your money works. This makes your liquidity more efficient, and you can earn more fees if trades happen inside your chosen range. On MuesliSwap, these concentrated liquidity pools are connected directly to the orderbook. This means: * **Traders** always get the best possible trade route. * **Liquidity providers (LPs)** can focus their funds on the price ranges they believe in. Now, let’s go step by step. ### 1. Finding Concentrated Pools Go to **MuesliSwap → Earn → Liquidity**.\ Here you’ll see a list of available **Concentrated Liquidity Pools**.
Liquidity page with available pools

Liquidity page with available pools

Each pool shows: * **Pair Name** – the two tokens in the pool (e.g., SHEN/ADA). * **Liquidity Range** – the price interval where the pool is active. * **Price** – the current price in ADA. * **Liquidity Locked** – how much total money is in the pool. * **Pool Fee** – the fee charged on trades (shared among LPs). 🔑 Key difference: unlike normal pools, here your liquidity only works **inside the price range** shown. ### 2. Connect Your Wallet & View Your Position 1. Click **Connect Wallet**. 2. Once connected, you’ll see your own **liquidity positions** inside each pool.

SHEN/ADA pool showing user’s liquidity position.

This panel shows: * How much ADA and SHEN you provided. * What percentage of the pool you own. * Pool details (fees, locked liquidity, matchmaker fee). From here, you can **Add Liquidity** or **Remove Liquidity**. ### 3. Add Liquidity 1. Click the **Add Liquidity** button. 2. Choose how much **ADA** and **SHEN** (or another pair) to deposit.

The Add Liquidity form

Important notes: * The correct ratio is **calculated automatically** based on the current price. * You don’t need to worry about math — just enter how much you want to add. * The interface shows the price range, your share of the pool, and the fee tier (for SHEN/ADA this is 0.3%). 3. Confirm your transaction. * Your deposit is **batched on-chain** (to reduce fees). * You’ll receive **LP tokens** as proof of your position. * After confirmation, your liquidity appears in your position list. ### 4. Remove Liquidity 1. Click the **Remove Liquidity** button. 2. Use the slider to pick how much you want to take out (e.g., 25%, 50%, 100%).

The Remove Liquidity widget.

3. The system shows the **amount of ADA and SHEN you’ll get back**. * Example: removing 39% of your position might return \~1.08 ADA + 0.9 SHEN. 4. Confirm the transaction, and the tokens return to your wallet. ⚠️ Note: If the **market price moves outside your range**, you might only get back one token (all ADA or all SHEN). This is normal. ### 5. Trade Using Concentrated Pools 1. Go to the **Swap** page. 2. Choose the tokens you want to trade (e.g., ADA → SHEN).

Swap form with ADA → SHEN trade.

The system will: * Automatically pick the **best route** (it may include concentrated pools). * Show you the amount you will get **after fees**. * Let you confirm the trade on-chain. If you enable **Expert/Pro Mode**, you can see the **Buy/Sell orderbook**.

Buy and Sell orders for SHEN/ADA

Some of these quotes come directly from the concentrated pools — this is how the CHM combines orderbook liquidity with pool liquidity. ### 6. Key Tips & Things to Remember * You can open **multiple liquidity positions** with different ranges to cover a wider market. * If the **price moves outside your range**, you stop earning fees until it moves back in. * Every action (add, remove, trade) is a blockchain transaction and costs a small fee. * Always check your **liquidity page** after connecting your wallet to see your active positions. # Staking Stake MILK and earn tokens as a reward! We are happy to announce that staking is now live on mainnet. By participating in MuesliSwap staking, MILK holders have the chance to earn Cardano tokens such as SNOW! The number of available pools varies. So make sure to follow our [Social Media Channels](/cardano/contact-us) to learn about new pools! **How does staking work?** Anyone can deposit their MILK tokens into our smart contract. You can then decide between different token pools in which you will earn rewards. The rewards within each token pool are distributed to all participants staking their MILK in the pool. Once you unstake your MILK tokens, you can automatically claim the accumulated token rewards from the MILK pool. The rewards will then be sent in a separate transaction to your wallet. **How can I get started?** Just head to the [Earn - Stake Page](https://muesliswap.com/earn/stake). You will see a list of MILK pools, where you can stake your MILK tokens, along with some information. In the example below, we have a pool with the SNOW token as a reward. We can see the total amount of MILK staked at the moment and the current reward per 1 MILK. This mechanism shows the estimated rewards you can get if you stake until the pool end date. Each pool has a start and an end date — in this case, the pool ends on August 29th. By clicking on Details you can stake MILK. Simply enter your amount, click Stake MILK, and you’re done!
# Hungry Cows NFT HungryCow NFTs by MuesliSwap #### Find a detailed article explaining drops and the token on our Medium: #### And on the drop page: **Quick facts about Hungry Cows** * Total Number of NFTs: 10,000 * Drop 1: Date: 18th July 2022 5pm UTC * Drop 2: Date: 20th July 2022 - **Mint price 60 ADA** * Drop size 5,000 Hungry Cow NFTs * No whitelist requirement (open to everybody) * Preregister between 12pm UTC and 8pm UTC -> minting starts at 8pm UTC * requests between 12pm UTC and 8pm UTC are treated equally (we distribute NFTs randomly and return NFT/leftover ADA) We are proud to present the MuesliSwap Hungry Cow NFT series. Hungry Cows will help you boost your yield farming rewards on MuesliSwap. You can lock your hungry cow NFT with one yield farming position to boost your rewards. Each hungry cow is unique and has a unique boosting factor. To understand how the boosting factor is computed please have a look below. **Boosting factor distribution** *Please note* *we have adjusted these informations to exactly represent the boosting factors we selected during the random minting process* The boosting factors are distributed as following: ![Distribution of NFT boosting factors ](/files/IyAryh3cKeyosUwLFISJ) Minimum Boosting Factor: 7.62% Maximum Boosting Factor: 91.99% Median boosting factor: 38.32% Mean boosting factor: 39.99% Standard deviation of boosting factors: 15.28% **Unique Boosting Factor and Rarity levels** Each Hungry Cow is composed of multiple gadgets that have a rarity level and a unique boosting factor. Of course when computing the boosting factor all gadgets that are part of the NFT will contribute to the factor. The following tables additionally introduces the different widgets and their rarity levels. The Hungry Cow NFTs feature a unique boosting factor between 7.6% and 92% on your yield farming position. HungryCow NFTs are limited to 10,000. **Background** | Item Name | Rarity | | ---------------- | ------ | | Alpine Mountains | 19.87% | | Space | 20.47% | | Park | 19.86% | | Kitchen | 19.49% | | Swiss Town | 20.34% | **Cow** | Item Name | Rarity | | --------- | ------ | | Regular | 39.89% | | Happy | 29.62% | | Hungry | 14.93% | | Greedy | 10.48% | | Cardano | 4.15% | | Golden | 1.85% | **Hats** | Item Name | Rarity | | ------------------ | ------ | | None | 40% | | Beret | 19.74% | | Cowboy Hat | 20.22% | | Muesli Bowl | 10.36% | | Cooking Hat | 5.57% | | Melone Hat | 2.36% | | German Hunting Hat | 2.52% | **Hand Items** | Item Name | Rarity | | --------- | ------ | | Spoon | 50% | | Scepter | 25% | | Ladle | 18% | | Fork | 7% | **Tables** | Item Name | Rarity | | --------- | ------ | | Regular | 30% | | Grass | 25% | | Cardano | 20% | | Wood | 20% | | Fancy | 5% | **Muesli Bowl** | Item Name | Rarity | | ----------------------------- | ------ | | Original Bowl Blue | 30% | | Original Bowl Orange | 30% | | Original Bowl Green | 20% | | Purple Bowl (different shape) | 10% | | Yellow Bowl (different shape) | 10% | **Muesli Bowl Content** | Item Name | Rarity | | ------------------------------------ | ------ | | Original Muesli Fruits | 40% | | Muesli Fruits with more Strawberries | 30% | | Pineapples | 10% | | Different Fruits | 10% | | Milk Tokens | 5% | | Cardano Coins | 5% | **Gadgets** | Item Name | Rarity | | ---------- | ------ | | None | 50% | | Sunglasses | 20.19% | | Glasses | 15.57% | | Monocle | 9.37% | | Gold Chain | 5.24% | **Clothing** | Item Name | Rarity | | ---------- | ------ | | Regular | 39.88% | | Crazy | 15.68% | | Normal | 14.98% | | Ancient | 10.18% | | Lederhosen | 10.06% | | Suite | 9.77% | # Tokenomics The MuesliSwap ecosystem interacts with a number of tokens. Read on to learn more about the features and tokenomics of all tokens associated with MuesliSwap - MYield, MILK and SNOW! # MuesliSwap MILK Official governance and utility token of MuesliSwap on Cardano and Milkomeda **NOTE:** On January 26, 2024, as decided through a [governance vote](http://vote.muesliswap.com/helios/e/dao-transition), we have started migrating the [original MILK token](https://cardanoscan.io/token/8a1cfae21368b8bebbbed9800fec304e95cce39a2a57dc35e2e3ebaa4d494c4b) into the [new MILKv2 token](https://cardanoscan.io/token/afbe91c0b44b3040e360057bf8354ead8c49c4979ae6ab7c4fbdc9eb4d494c4b7632) in order to feature decimal places for increased flexibility. There's a 1:1 correspondence between MILK and MILKv2, hence the total and circulating supply is unaffected by this migration. For details on the migration process, see the [MILK Token Migration FAQ](https://docs.muesliswap.com/cardano/milk-token-migration-faq). *** **We are proud to present** the MuesliSwap MILK token 🥛 - the official governance and utility token of MuesliSwap on Cardano and Milkomeda. **The total supply of our utility token is fixed to 10 million (10,000,000) MILK, and 5.3 million (5,300,000) MILK are currently in circulation.** Moreover, we have allocated \~ 1.12 million MILK to our yield farming campaign. **Roadmap of MILK Token** This is the list outlining the MILK token utilities. 1. Launch of **MILK trading** on the MuesliSwap exchange 2. **Staking of MILK**: Collect new Cardano tokens by staking your MILK 3. **Premium trading features** (e.g. access to advanced monitoring and stock analysis) 4. **Reduced trading fees** 5. Development of MuesliSwap towards a **DAO** by 1. using MILK to contribute in community votes on listing of new token featured 2. giving MILK holders the opportunity to decide on new features of MuesliSwap, and influencing the future development timeline. Summarizing, MILK will many useful benefits as the utility token of MuesliSwap: * **Trading:** access to exclusive exchange features and lower transaction fees * **Voting:** Vote on community governance proposals * **Staking:** Participate in the MILK pools and collect new Cardano tokens * **Early Access:** Get early access to MuesliPad (the innovative launchpad from MuesliSwap) The policy ID of MILKv2 is [`afbe91c0b44b3040e360057bf8354ead8c49c4979ae6ab7c4fbdc9eb`](https://cardanoscan.io/token/afbe91c0b44b3040e360057bf8354ead8c49c4979ae6ab7c4fbdc9eb4d494c4b7632). The policy ID of MILK is [`8a1cfae21368b8bebbbed9800fec304e95cce39a2a57dc35e2e3ebaa`](https://cardanoscan.io/token/8a1cfae21368b8bebbbed9800fec304e95cce39a2a57dc35e2e3ebaa4d494c4b). # Muesli Yield Token The yield farming reward token of MuesliSwap - 100% community committed MuesliSwap is adding Liquidity Pools to both Milkomeda and Cardano mainnet step by step. To incentivize liquidity provision within the MuesliSwap protocol, we introduce the **Muesli Yield** Token. The main utility of Muesli Yield is that it can be staked to earn MILK buy options. By staking the Muesli Yield Token, you can transform it into MILK call options (1 call option = 1 MILK token) with an exercise price of 1 ADA, and without any expiry date. That means for 100 Myield you stake you get the option to buy a MILK token for 1 ADA. You stake 100 MYIELD for 30 days to get 1 MILK buy option. After 30 days, the staked MYIELD will be burned. *Please note: MYIELD will **be burnt after** earning the MILK call option. Initially, we have announced different tokenomics for Milkomeda and extra MILK options will be distributed through a snapshot on Milkomeda to make up for this change (more information soon).* **MILK will still be the main governance and utility token for both MuesliSwap on Milkomeda and Cardano mainnet.** *Note:* Staking of Muesli Yield tokens is expected to go live once Liquidity pools and yield farming are launched on Cardano mainnet. This is the first time ever that you can farm call options. We are excited to bring new professional trading instruments to the Cardano network - keeping MuesliSwap at the forefront of innovation in DeFi. **MuesliYield Tokenomics** *Initial Supply*: 100,000,000 Muesli Yield tokens (-> 1,000,000 MILK call options) - 300,000 options reserved for Milkomeda and 700,000 options for Cardano mainnet *Ticker*: MYIELD *Distribution Timeline*: 18 months (see chart below) MuesliSwap Yield tokens will be distributed through yield farming on Milkomeda (30%) and Cardano mainnet (70%) - (subject to change). After the 18 month initial distribution period the farming incentives will be decided through a community vote. ***An additional 110,000 MILK will be distributed to the Milkomeda community to make up for our tokenomics changes.*** **FAQs (Frequently Asked Questions)** ***What are LP tokens?*** When you provide liquidity to either MuesliSwap Milkomeda or MuesliSwap Cardano Mainnet Liquidity Pools, you will receive LP tokens that represent your share in the liquidity pool. We will be adding farming for some Liquidity Pools, which means that you can stake your LP tokens and receive Muesli Yield as a reward. ***What can I do with my Muesli Yield tokens?*** You can either directly trade your Muesli Yield tokens or stake them so that you can earn MILK call options. Please note that after the MILK call options are distributed you can only ***What does it mean to receive a MILK call option*****?** The [call option](https://en.wikipedia.org/wiki/Call_option) tracks our underlying MILK token. The exercise price is 1 ADA and has an unlimited run time. The call option will also be listed for trading on MuesliSwap. We are more than excited to announce that you are now able to yield a call option - for the first time ever on Cardano! One call option can be exchanged for 1 MILK token. ***Are you going to mint new MILK to cover the call options?*** No, we are not creating new MILK tokens. MILK will still have a total supply of 10 million tokens. The tokens will come from the not yet distributed MILK token. ***What other utilities can I expect from MYIELD?** As MILK is our main governance token you can only expect a limited set of features from MYIELD including farming on both Cardano mainnet, Milkomeda and access to some Milkomeda features.* **Muesli Yield Token Distribution -** 100% community committed / 0% for team or investors 30% of the Muesli Yield tokens will be distributed on Milkomeda (30,000,000) and 70% on Cardano mainnet (70,000,000) for Liquidity Provision. (This ratio is based on our initial estimate and can be changed if the Total Value Locked between both blockchains substantially differs.). This means we have 300,000 MILK options reserved for Milkomeda and 700,000 MILK options reserved for Cardano mainnet. ![Distribution of Muesli Yield supply](/files/O7jJQtNsBn3SAhAEukbK) *Please note that this is our preliminary plan to incentivize liquidity provision and is subject to change.* The policy ID of MYIELD on the Cardano Network is `8f9c32977d2bacb87836b64f7811e99734c6368373958da20172afba` The contract address of MYIELD on Milkomeda is `0x2D7289Df2f41a25D3A628258081aD7B99eb4C83B` # MuesliSwap SNOW The MuesliSwap launch commemorial token The year 2021 was set to revolutionize the Cardano ecosystem: With the widely anticipated Alonzo hard fork, smart contracts allowed the community to build the first decentralized applications. While dozens of projects had proudly announced their vision of becoming the first Cardano-based DEX, their Devs seemed to be entirely occupied with the study of Plutus Core. Well, not entirely ... One small team of indomitable Swiss computer scientists had already cracked the code and saw their chance. On November 26th, 2021, MuesliSwap launched as the first DEX on Cardano mainnet. The same day, Switzerland saw its first snow. To celebrate the launch and the first snow of the year, we created SNOW: \ A limited amount of special snow globes! ![The MuesliSwap SNOW token, featuring its original Logo](/files/ZZRbdqxtIxV5vHrBosSx) SNOW is a scarce token with a supply of only 1,000,000, but unlike MILK, its primary purpose is not utility. Instead, it resembles a milestone in the history of Cardano DeFi, frozen in time. As a holder of the SNOW token, you share this moment with us. Are there future benefits for SNOW holders, you ask? We will see! \ Snow globes are no crystal balls, so stay tuned for what's to come! The policy ID of SNOW is [`8f52f6a88acf6127bc4758a16b6047afc4da7887feae121ec217b75a`](https://cardanoscan.io/token/8f52f6a88acf6127bc4758a16b6047afc4da7887feae121ec217b75a534e4f57) # Other tokens There are some other tokens distributed at special events. Their tokenomics are usually bound quite tightly to the event they correspond to. This page gives an overview over other official MuesliSwap tokens: ### MVOUCHER The MVOUCHER (Milk Voucher) Token represent a call option for MILK, redeemable at 1 ADA. It is distributed as reward for staking 100 Muesli Yield tokens for at least 30 days. See the[ Muesli Yield token](/cardano/tokenomics/muesli-yield-token) page for details. The official policy ID of the token is `0a5c0d56198786281ecd65fd0eb8b405a968a2a859bbbc4cfd32b1e3` # Decentralization What makes MuesliSwap different? Read more to see how we compare 👇 **Non-custodial model**\ In a traditional exchange, assets are held by a centralized entity (exchange, stock broker, ...). This comes with a significant risk of financial loss if this entity were to be hacked. When using MuesliSwap, funds are held directly on the blockchain, either in traders' private wallets or in a smart contract. Thus, there exists no intermediary with the ability to misuse users' funds. **Order transparency**\ In the MuesliSwap protocol, all trades are publicly visible on the blockchain, forever. This way, everyone has the same access to market data, small and large investors alike. At the same time, transparency helps in avoiding market manipulations. **Democratized trading**\ The MuesliSwap protocol doesn't rely on trusted individuals with special privileges. This is in contrast to other decentralized protocols, where a dev team has the power to select "validators". As a rule, these validators make money by arbitrage and reordering transactions in a way profitable for them. Such a protocol is not really decentralized! In MuesliSwap, no such thing exists - everyone can be a matchmaker. # Matchmakers Matchmakers are bots that continously scan open orders on the MuesliSwap orderbook protocol. If they find two orders that can be used to fill each other, they issue a match: Use the locked funds of either order to fill the other order. This process is coordinated by two factors: The matchmaking incentive and game theory. The matchmaking incentive is a small amount of ADA that is attached to each order and incentivices matchmakers to process orders. The matchmakers are additionally incentiviced by the margin on two orders, which they can keep as a reward. Game theory coordinates the contention around matching orders. While Matchmakers may try to batch as many orders as possible or wait strategically until they match certain orders, game theory forbids this behavior. The matchmakers need to be aware of other matchmakers interacting with the protocol. Since others could process orders before any strategic behavior is applied, the main incentive is to fill orders as fast as possible - just as users would wish for. The MuesliSwap protocol doesn't rely on trusted individuals with special privileges. This is in contrast to other decentralized protocols, where a dev team has the power to select "validators". As a rule, these validators make money by arbitrage and reordering transactions in a way profitable for them. Such a protocol is not really decentralized! In MuesliSwap, no such thing exists - everyone can be a matchmaker. ### Interacting with orders Users place orders on the Cardano Blockchain by locking funds in the MuesliSwap Orderbook contract. The contract may only release tokens if the conditions specified by the user are met - this is the case if the amount of tokens returned to the user fits the amount of tokens ordered. Alternatively, a ratio of the tokens may be attached to a new order placed to the contract belonging to the same user. **Parsing user orders** How do the matchmakers know the amount of tokens ordered by the user? When placing an order at the MuesliSwap orderbook contract, we attach metadata and tokens to the transaction. The amount of token offered is exactly the amount of token attached to the utxo, except for 1.7 ADA that are always attached to meet the minimum UTxO amount. The following metadata provides the remaining information necessary to reconstruct what a user ordered: | Metadata label | Value | Example | | -------------- | ----------------------------- | -------------------------------------------------------------------------------------------------------------------- | | 1000 | Shelley address of user (hex) | `01bb82dd3ca6f7570361047fb5a249ad46b6eb949a8bf99d68eca5a158f450aaffebf56c87bda8d5810a8587443b6151df89e0a56e6636b0b8` | | 1002 | Ordered token Policy ID | `8a1cfae21368b8bebbbed9800fec304e95cce39a2a57dc35e2e3ebaa` | | 1003 | Ordered token Name (hex) | `4d494c4b` | | 1004 | Ordered token Amount | 1000 | | 1008 | Offered token Policy ID | `8f52f6a88acf6127bc4758a16b6047afc4da7887feae121ec217b75a` | | 1009 | Offered token Name (hex) | `534e4f57` | **Constructing a match** When constructing a match transaction between two user inputs, the matchmaker needs to supply the contract with additional information. Once, it needs to supply the datum that the user attached to its order in the contract. This datum is reconstructed according to the metadata fields above. In addition, the matchmaker needs to supply a special datum, called redeemer, that tells the contract the purpose of spending the user funds. When matching two orders completely, the format for the redeemer does not change. In case of a partial match, the matchmaker has to provide the match ratio `r` in the redeemer. *Note:* With the launch of our new orderbook protocol, we introduce so called "Matching licenses". These are necessary in order to interact with the orderbook as matching entity. The licenses are in place to secure user funds and guarantee a safe match making progress. As our protocol progresses, we will give licenses out in a more and more liberal fashion such that ultimately everyone can participate as a registered matchmaker. Licenses are now available for testnet via our testnet faucet! See the [feature preview page](broken://pages/et7yCr3sS9O5fw8eS071). The redeemer now has an additional field which specifies the index of the incoming UTxO to the transaction that contains a valid matching license. It is important that the matching license is valid until before the end of validity of a transaction. # FAQ Frequently asked questions ### General #### **How does MuesliSwap DEX work? Is there a high level description?** We created an exhaustive blog post about the trading concepts of [MuesliSwap on Medium](https://medium.com/@muesliswap/muesliswap-presents-the-protocol-powering-cardanos-first-dex-3db25a844245). Technical details can be found [in our white paper ](https://ada.muesliswap.com/whitepaper.pdf)outlining the MuesliSwap Cardano DEX. #### **Is the smart contract secure? Is there a security audit?** Yes - our v2 Smart Contract has been audited by [MLabs](https://mlabs.city/). The v1 code is publicly available and has seen many internal and independent community reviews. In general, the approach of using a decentralized order book is much less vulnerable to exploits. Funds are only temporarily locked until the corresponding order is filled, which reduces the locked amount (and risk) in comparison to liquidity pools. #### Where can I find the Smart Contract I am interacting with? We published all the code regarding our Smart Contract in our GitHub repository: . Feel free to build the contract and compute the address locally to be sure you are interacting with the right address. Our contract can be observed on cardanoscan and other blockchain explorers #### **How can I submit suggestions/changes for token listings? How can I get my token listed?** We are receiving many requests for listed tokens every day. Please submit your request in our GitHub repository for us to consider it: #### **What are the official handles/ social media accounts of ADA MuesliSwap?** Below is a list of official representatives of MuesliSwap on different platforms: * Twitter: * Telegram: @muesliswap\_ADA * Github: * Medum: ### Wallets #### I bought tokens with my Nami Wallet, but I received collectibles? Nami wallet has a display bug, where tokens could be displayed as collectibles. By hovering over the collectible, you will see the amount of token you received. You can double check on [pool.pm](https://pool.pm/) or by using another wallet that you have indeed received the correct amount of tokens. #### I am trying to place orders with my Hardware Wallet (i.e. Ledger) but the order fails! Hardware wallets like ledger do currently not support interactions with Smart Contracts. Please consider creating a Software Wallet, to which you can send small amounts for trading. #### Is there any mobile wallet support? Our website is featured in the [Eternl DApp Store](https://eternl.io/app/mainnet/dapps) on mobile devices and can be interacted with from [Vespr Wallet](https://vespr.xyz/) and other wallets with in-wallet browsers. ### Trading #### Why doesn't my order get matched? First of all, note that MuesliSwap is an order book-based exchange, meaning unlike liquidity pool based exchanges, orders are pending *until an accordingly priced matching order is found*. This means if you set the buy price too high compared to what sell prices are currently available on the market, your order will not find a match. A second point is that maybe the option to match partially was disabled in the options menu, then *only equally sized orders will be matched*, i.e. don't be surprised if there is an opposite order with matching price, as long as it is of different size, the match won't happen. #### What happens to my ADA / tokens when I place a trade? Being a decentralized exchange, MuesliSwap does not hold any assets. Instead, these are stored on the blockchain and protected by a validator script. The assets may only be unlocked if certain conditions are met. These are: a) the trade succeeds, and you get the ordered value, or b) the order is canceled by you. #### I can not cancel my order! What is happening? There can be several reasons an order can not be canceled. First, make sure to set a collateral in the Nami Wallet. This can be done under Nami Settings -> Collateral. Also, it may be necessary to try several times before the order works. Or, the order has been matched already, in which case you should see the received funds in your wallet. If you have already put a collateral and canceling did still not work, try removing it and setting it again. If it did not work after some attempts, please reach out to us. #### What fees are being paid to use the service? The main amount of funds sent to the contract is the amount of token you want to sell or the amount of ADA which you are willing to spend on tokens. This is accompanied by 1.5 ADA, which is the minimum amount of ADA in any transaction on the Cardano network. An additional 0.95 ADA are sent to reward matchmakers for matching your order and to cover Cardano network fees. #### Can MuesliSwap access my wallet? No. When you place an order, this is done entirely in your browser and has to be signed by your wallet. We do not receive any data. Note: never share your private keys with anyone! #### Are there any risks involved in trading ADA/tokens? As always, trading comes with certain risks. When you buy an asset, is value may increase or decrease over time, which may result in gains or losses. As a rule, never invest more than you are willing to lose. ### Network Congestion We receive many questions due to the congestion of the Cardano network. Here we answer a few: #### I have successfully placed an order, but I have not received any tokens, nor does it appear under "My Orders". What should I do? If your order was successful and did not result in any error message, you will soon be able to see it in your transaction history. However, it can take up to a couple of hours until you receive your funds or see your order under "My Orders". Please **do not repeat** the same transaction unless you would like to order/sell additional tokens. #### Help**,** I can not cancel my order! The congestion can delay submitting transactions, even when setting a collateral. It might be that a previous transaction that uses the Collateral UTxO is still pending. Please wait for a while and try again until the cancellation succeeds. #### I keep getting a fullMempool error, what should I do? This error is also due to congestion and is mainly reported when using Nami wallet. Please try using a different wallet. If that does not resolve the issue, please wait for a while and try again. As an advanced user, you can try setting a custom node for transaction submission. # MILK Token Migration FAQ Here, you'll find answers to common questions about transitioning from MILK to MILKv2. Our aim is to ensure a smooth and straightforward migration process for all our users. ### What is the MILK Token Migration? The MILK Token Migration is the process of transitioning from our [older version of the MILK Token (MILK v1)](https://cardanoscan.io/token/8a1cfae21368b8bebbbed9800fec304e95cce39a2a57dc35e2e3ebaa.4d494c4b) to the [new version (MILK v2)](https://cardanoscan.io/token/afbe91c0b44b3040e360057bf8354ead8c49c4979ae6ab7c4fbdc9eb.4d494c4b7632). This migration introduces decimal places for enhanced transaction flexibility and ensures both versions retain full utility within our ecosystem. ### MILKv2 Token Details * Policy ID: [`afbe91c0b44b3040e360057bf8354ead8c49c4979ae6ab7c4fbdc9eb`](https://cardanoscan.io/token/afbe91c0b44b3040e360057bf8354ead8c49c4979ae6ab7c4fbdc9eb4d494c4b7632) * Token name: `MILKv2 (4d494c4b7632)` * Decimal places: `6` * Total supply: `10,000,000.000000` *** ### When does the MILK Token Migration start and end? * **Start Date:** 26 Jan 2024 * **End Date:** There is no fixed end date for the migration. However, it's advisable to migrate early as rewards for MILK v1 will gradually decrease over time. *** ### Why should I migrate to MILKv2? * **Decimal Places**: MILKv2 supports decimal places for greater transaction precision. * **Ease of Process**: The migration involves a simple, one-time procedure of burning MILK v1 tokens and receiving MILK v2 tokens. * **Earn your Milks Worth**: The rewards for farms and flexible staking of the old Milk token will decrease over time, therefore you should consider moving your MILK to keep earning to the fullest potential. *** ### How do I migrate my MILK Tokens? Simply head to the [MILKv2 page on muesliswap](https://muesliswap.com/token-migration) and follow the instructions on there. *** ### Can I migrate all my MILK Tokens at once? Yes, you can migrate all MILK tokens in your wallet to MILK v2 at once. This is the recommended approach for convenience and efficiency. *** ### Is it possible to migrate only a portion of my MILK Tokens? Absolutely. You can choose to migrate only a part of your MILK tokens using the Migration dialogue feature available on our platform. *** ### How do I transition my stakes from the old to the new MILK farms? Due to the decentralized nature of Muesliswap, this process requires manual intervention: 1. **Remove LP Tokens**: Withdraw your LP tokens from the existing MILK/ADA and MILK/ADA LBE farms. 2. **Convert LP Tokens**: Use the migration dialogue on [the migration page](https://muesliswap.com/token-migration) to convert your old LP tokens into new ones compatible with MILK v2 pools. *** ### What should I do if I have provided liquidity in the MILK/ADA pool? For liquidity providers, follow these steps: 1. **Unstake from MILK/ADA Farming**: Ensure all your LP positions are migrated. 2. **Convert LP Tokens**: Press the button on the [migration page](https://muesliswap.com/token-migration) to convert your existing MILK LP tokens into the new MILK LP tokens. *** ### What about Flexible Staking? For Flexible Staking, you'll need to: 1. **Withdraw Stakes**: Remove your stakes from the old staking pools. 2. **Migrate Tokens**: Migrate the MILK tokens back to your wallet [here](https://muesliswap.com/token-migration). 3. **Restake**: Stake the new MILK tokens into the new staking pools. *** **Remember**: Continuous migration with no set end date means you can migrate at your pace. However, migrating early is beneficial as rewards for MILK v1 will decrease over time. # Social media & Contact How to contact the MuesliSwap Team For any inquiries, please send us an email at or DM us on Twitter [@MuesliSwapTeam](https://twitter.com/MuesliSwapTeam). We are happy to help and appreciate any form of inquiry. Discord: **Beware of fake support groups on Telegram!** These are the official ones: * Telegram Group: * Telegram Team: @muesliswap\_ADA Don't respond to DMs from unknown Telegram accounts! These are almost always scammers. We will never DM you first. We will never ask for your private keys. We will never send you links to install a wallet. Use only official links from Cardano project websites! You can also join our official Telegram group using this QR code: ![](/files/DL76PxD3F5V3EtF4LHSp) # API MuesliSwap provides a number of API endpoints for querying the state of the DEX. The following is an incomplete list of endpoints, subject to change. Token decimals have to be accounted for by the client, unless explicitely stated. ## General {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/token-list" method="get" expanded="true" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/list" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} ## Price {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/price" method="get" expanded="true" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/trades" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/orderbook" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/charts/price" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} ## Pools, etc {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/liquidity/pools" method="get" expanded="true" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/staking/myield-pools" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/staking/token-pools" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/staking/farming-pools" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} ## Wallet Specific {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/orders/v2" method="get" expanded="true" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/staking/farming-open" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} {% openapi src="/files/LS6s5rjksznBVRHhrF5f" path="/open-positions" method="get" %} [trimvis-api.muesliswap.com-1.0-resolved.yaml](https://2598377122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MjoGoMS0wqMF7Accm3h%2Fuploads%2FbAY7m1zmb0e1sBHlUNBy%2Ftrimvis-api.muesliswap.com-1.0-resolved.yaml?alt=media\&token=aa6018b4-e4dd-4382-a7cd-e6f931db7908) {% endopenapi %} ### Terms of Use For private use only. If you are interested in using this API commercially please contact us at . Moreover, we are applying a fair use policy to our API where we expect a reasonable number of requests. ## Community Tools In this section, we simply highlight certain tools that have been built on top of our API and contract. We take no liability for the quality of these services and do encourage some caution before employing these tools. ### Google Sheets Twitter user @cardanostra wrote a small thread on importing live price feed data into Google Sheets: ### Coin Overview Cardanians built a pretty overview on all currently available tokens on the network, including data on the prices and volume powered by the MuesliSwap API: ### Last Trades This website shows the most recent trades for featured tokens on the MuesliSwap page: # Swap Integration Swap component for integration on any website We created a component, which is easy to integrate & customize, for use with any website. This allows developers to directly allow swapping of either a selected token or all tokens directly on their site. ### Tutorial 1. Visit [muesliswap.com/creator/embedded-swap](https://muesliswap.com/creator/embedded-swap) 2. Configure to your liking on the right or bottom of the page 3. Copy the generated code (placed below the configuration) into your clipboard 4. And paste it at the corresponding location in your html file 5. You are done! 🥳

The embed swap creator page

### Configuration * *Select Base Token / Select Quote Token:* Change the tokens which will be selected after load. Be careful: prices will be quoted in the base token and not in the quote token. * *Auto Connect to Last Wallet:* Automatically reconnect to the last wallet connector used inside the iframe. This option is not intended to be used in combination with selective auto connecting. * *Theme:* Let either the website determine the theme (*Detect*) through the system preferences or force the usage of a certain theme (*Dark / Light*). In the future more options will be added here. * *Hide Background:* Makes the background of the iframe see-through to make it easier to cleanly integrate * *Tight Layout:* If enabled this option will remove all surrounding paddings and margins of the iframe. This e.g. can be used to stretch the swap modal to the borders of the iframe. * *Use Recommended Size:* This will set the recommended minimum width and height. We do not recommend going below these defaults. * *Height / Width:* Make sure to hardcode your width and size here, these arguments will be processed internally. Therefore you should not change the iframe width and height manually! ### Advanced Configuration You can automatically connect to any (injected) wallet of your choosing by passing the key to a CIP-30 compliant object in `window.cardano` as the first argument. See the explanatory text in the second script element for more details. This should not be used in combination with the *Auto Connect to Last Wallet* option. To integrate in any framework, please look into how to import and use external javascript files in your framework. Please refrain from downloading and storing the `embed.js` file locally, in case we ever update or change the internally used interface. # Introduction Getting started with MuesliSwap on Milkomeda We are proud to present MuesliSwap on Milkomeda - an extension to the MuesliSwap DEX that is operating on the Milkomeda sidechain. MuesliSwap on Milkomeda allows the trading of wrapped tokens with an Automated Market Maker (AMM) on on Milkomeda C1. Currently, MuesliSwap Milkomeda is already available on Milkomeda mainnet! Check it out here: {% embed url="" %} ### **What is Milkomeda C1?** Milkomeda is a protocol that equips Cardano with the power of the Ethereum Virtual Machine. Similar to a portal between two galaxies like the Milky Way and Andromeda, it connects the Cardano blockchain with Ethereum, allowing you to enjoy the best features of both blockchains. ### **Why Milkomeda and how does this help me?** Since Milkomeda is an EVM-compatible side chain bridged to Ethereum, users can benefit from easy access to existing smart contracts and DeFi services built on the Ethereum ecosystem. These complement well with Cardano and make it possible for us to bring the most anticipated tokens much earlier than anticipated to MuesliSwap users. Thanks to the Ethereum bridge MuesliSwap on Milkomeda will be able to offer trading in Wrapped Ether, USDT, USDC and many other assets. We are hoping to enable trading across these two networks, which is why we have decided to launch MuesliSwap on Milkomeda. For the time being, users may also avoid the current network congestion by executing their trades on Milkomeda. Additionally, this also allows us to test AMM liquidity pools, which we plan on adding to our Cardano mainnet DEX in the middle of 2022. ### **How does this affect the main MuesliSwap DEX?** Of course, the MuesliSwap DEX on Cardano mainnet remains our core product! You can see MuesliSwap on Milkomeda as an extension to our mainnet DEX, providing you with Automated Market Maker capabilities much earlier than anticipated. This will make it possible for the user to select their favorable trading model. ### **Is the Milkomeda DEX audited?** We are using the Uniswap V2 Smart Contracts, which have been independently audited by several industry-leading auditing companies. See for example: [Uniswap V2 Audit Report](https://dapp.org.uk/reports/uniswapv2.html) The validity of on-chain deployed contracts can be verified on launch, simply by comparing their bytecode to our GitHub repositories. ### **How can I benefit?** You will be able to benefit from providing liquidity into liquidity pools, earning from transaction fees in the process. Proceed to the [next page ](/milkomeda/getting-started)to get started with trading on Milkomeda! # Getting started ### Getting started with Milkomeda To get started you need to setup a Cardano wallet (like Flint Wallet or Nami), an Ethereum compatible wallet (like Metamask) and obtain milkADA. You can follow the steps described by the Milkomeda team to get started. {% embed url="" %} ### Connecting to Muesliswap on Milkomeda Visit [milkomeda.muesliswap.com](https://milkomeda.muesliswap.com) (or for testnet [testnet.space.muesliswap.com](https://testnet.space.muesliswap.com/swap)) and click on the connect button on the top right. Select one of the wallets you [have set up](/milkomeda/introduction#setting) (i.e. Metamask) and confirm the connection.
# Providing Liquidity You can provide liquidity for the AMM on Muesliswap Milkomeda. By doing so, you provide a given amount of a pair of tokens to a liquidity pool, offering other users to trade them at the price defined by the ratio. The price may change as more users and larger trades happen with the liquidity pool. By adding liquidity, you'll earn 0.25% of all trades on this pair proportional to your share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity. To add liquidity, visit the "Add Liquidity" tab. {% embed url="" %} 1. Click on "+ Add Liquidity" 2. Select the token pair for which you want to provide liquidity for. 3. Select the amount of the first token you want to provide 4. The other amount is automatically determined by the price in the liquidity pool if the pool already exists. 5. Click "Supply" and confirm your inputs.\ \ Note: In case the token you want to supply is not enabled yet you will need to click "Enable TOKEN" to enable your wallet access to the token you want to supply ![Before a token can be supplied, it needs to be enabled.](/files/H9dK5qYLs2aatzSgsSvb) ![Hit supply to increase liquidity in this pool!](/files/86p3kXLj69RB7BfgbEmT) ![You will see a confirmation dialogue to confirm your inputs.](/files/jSzyb2YE6cZoTCSMY82a) # Trading In contrast to the MuesliSwap L1 DEX, MuesliSwap on Milkomeda is an AMM DEX. You can trade different pairs of tokens in flexible amounts here. After [setting up your Milkomeda wallet](/milkomeda/getting-started), visit the "Trade" tab. {% embed url="" %} 1. Select the tokens you want to trade between, for example trade ADA for MILK. 2. Click on "Swap" 3. Confirm that the amounts displayed are what you want to order 4. Click "Confirm Swap". Now you're done and you have traded on Milkomeda! **Trading fees** The fee for trading on Milkomeda is 0.30 %. Out of this, 0.25 % goes to liquidity providers. The remaining 0.05 % is used to cover expenses related to the project. ![Swapping ADA for testMILK](/files/j6OVGHeh0iXrHKnoTPEd) ![](/files/5j3KQv21GalJvgIqCeAh) # Farming & Staking Via Farming, you will be able to earn the the Muesli Yield token. More detailed documentation on these features is coming soon! # Smart Contracts These are the addresses of MuesliSwap Milkomeda smart contracts. Factory: 0x57A8C24B2B0707478f91D3233A264eD77149D408 Router: 0x1662EBa5ff3546D407ee0c73d94665d96dad2C2A Farming: 0x39B8571f510C8afbb1595FF7CB2d048df699aA71 The contracts can be verified in our Github repository: # Matchmaker Governance Developer This page is meant as an introduction for developers planning to use our DAO MatchMaker governance feature. For a user focused version please check: {% content-ref url="/spaces/-MjoGoMS0wqMF7Accm3h/pages/xM0QqJTSWxC9DFiAYWCm" %} [Matchmaker Governance User](/dao/matchmaker-governance-user) {% endcontent-ref %} This documentation explains our open-source DAO infrastructure and how other projects can use it to build **on-chain governance with Batcher oversight**. Our product is designed to help DAOs move beyond simple voting and discussion. Instead of votes being only advisory, governance decisions in our system directly control **who is allowed to operate important infrastructure**. In our first use case, this infrastructure is **matchmakers (also called batchers)**, but the same approach can be applied to many other roles. The core idea is simple:\ **operational power should be granted by the DAO, limited in time, and always revocable through continued voting**. To achieve this, our infrastructure issues **time-limited on-chain licenses** that are controlled by DAO governance. These licenses are real blockchain assets and can be checked by smart contracts or off-chain services. If a license expires or is not renewed, the operator automatically loses their rights without any centralized intervention. Our open-source release consists of two main parts. The first part is a **DAO governance dashboard**, which provides a complete frontend for interacting with on-chain governance. The second part is a **license governance framework**, which shows how governance decisions can mint, renew, and expire licenses in a fully decentralized way. #### Repositories The **DAO Governance Dashboard** is available here and should be used from the `release/matchmaker` branch: [https://github.com/MuesliSwapTeam/dao-governance-dashboard/tree/release/matchmaker](https://github.com/MuesliSwapTeam/dao-governance-dashboard/tree/release/matchmaker?utm_source=chatgpt.com) This repository contains the frontend part of the DAO monitoring setup. It includes wallet connection, proposal creation, voting, staking, treasury views, and dedicated pages for matchmaker governance and monitoring. The **Batcher / Matchmaker DAO Governance** repository is available here: [https://github.com/MuesliSwapTeam/batcher-dao-governance](https://github.com/MuesliSwapTeam/batcher-dao-governance?utm_source=chatgpt.com) This repository contains the smart contracts, off-chain transaction code, tests, and the monitoring backend that together power license issuance and renewal. #### Live example (Preprod) A working deployment of our product is available on Cardano Preprod: This live version shows how the dashboard, governance contracts, license system, and monitoring all work together. # How the System Works Our product is built around the idea that governance should directly control real actions on-chain. Instead of having a single authority decide who can operate a matchmaker, the DAO collectively makes that decision and can change it over time. A matchmaker starts by creating a **license request** through governance. This request is an on-chain voting object. DAO members can add their support or remove it at any time. Votes are not final once cast; they reflect the current opinion of the community. A processor updates the on-chain governance state so that the current voting result is always visible and verifiable. When enough support is reached, a **license NFT** can be minted. This NFT represents the right to operate as a matchmaker for a limited time. The license is intentionally temporary. Each license has an expiration timestamp built into it. When the license expires, the matchmaker must renew it by maintaining enough DAO support. If the community no longer supports the matchmaker, renewal becomes impossible and the matchmaker automatically loses their operational rights. This approach avoids complex revocation mechanisms and keeps the system simple and transparent. No special “admin action” is needed to remove a matchmaker. The absence of ongoing support is enough. To help DAO members make informed decisions, our product also includes a **monitoring backend**. This backend indexes blockchain activity and calculates performance metrics for matchmakers. These metrics are shown directly in the governance dashboard so voters can see how matchmakers behave before deciding whether to support or revoke them. # Getting Started as a Developer Our infrastructure is designed so that other projects can adopt it step by step. You do not need to copy everything at once. You can start with the frontend, then add governance contracts, and finally integrate license checks into your own protocol. The easiest entry point is the **DAO governance dashboard**. The `release/matchmaker` branch contains a stable version of the frontend with matchmaker governance already integrated. Running it locally gives you a full governance UI that you can connect to your own backend or to the public Preprod deployment. On the protocol side, the `batcher-dao-governance` repository contains everything needed to issue licenses through governance. The smart contracts are written to extend an existing DAO setup rather than replace it. Off-chain code is included to build and submit transactions, and tests document the expected behavior. An important concept for developers is that licenses are **real on-chain assets**, not abstract permissions. Each license is an NFT whose name encodes both the governance decision that approved it and the time until which it is valid. This makes license verification simple and reliable. When integrating this system into your own project, you can choose how strictly you want to enforce licenses. Some projects will require a valid license NFT directly in their smart contracts. Others may start by enforcing licenses off-chain, for example in their backend or routing logic, and move enforcement on-chain later. What matters is that governance decisions in our product are **binding and enforceable**. # Matchmaker Governance User Introducing our efforts into Matchmaker Governance and Monitoring Our DAO governance is currently available on the Cardano PreProd Network [https://preprod.dao.muesliswap.com](https://preprod.dao.muesliswap.com/) ### Motivation: Why We Need Matchmaker Governance In many decentralized applications (DApps) on Cardano, a special type of actor called a **batcher** or **matchmaker** is responsible for collecting user transactions and submitting them to the blockchain in a single, efficient bundle. This process keeps trading and DeFi operations running smoothly — but today, most batchers are still **centralized**. That means a small group (or even one person) controls how transactions are processed. This setup can create several risks: * If a batcher fails or acts unfairly, the whole system can break down. * A centralized batcher could **censor transactions** or **reorder them** for profit (a problem known as MEV — Maximal Extractable Value). * The community has **no direct control** or visibility over who operates batchers and how they behave. To fix this, we introduce our efforts for **matchmaker/batcher governance** — a decentralized way to manage who can operate as a batcher through **community voting and on-chain licenses**. Instead of a single operator holding power, a **DAO (Decentralized Autonomous Organization)** issues and revokes matchmaker licenses using transparent rules and token-based voting. **Please note this is currently on preproduction network ONLY.** This approach aims to: * **Distribute power** among the community instead of central entities. * **Increase transparency** by making all governance actions visible on-chain. * **Promote fairness and accountability** through regular license renewals and performance monitoring. * **Build trust** in DeFi protocols by aligning incentives between users, developers, and batchers. In short, matchmaker governance is about turning an essential but centralized system component into a **community-driven, open, and auditable process** — ensuring the long-term security, fairness, and sustainability of decentralized trading on Cardano. ### Implementation on MuesliSwap On MuesliSwap, matchmaker governance will be implemented through our new **DAO setup**. This setup connects governance, licensing, and monitoring into one transparent framework managed by the community. To make this possible, several key components are required: * **DAO Governance Platform:** A governance system that allows DAO members to propose, vote, and issue **DAO-controlled licenses** for matchmakers. These licenses define who is authorized to operate as a batcher within the protocol. * **DEX Smart Contracts:** Smart contracts on the DEX must be able to **verify and enforce DAO-issued licenses**, ensuring that only approved matchmakers can process transactions. * **Monitoring Framework:** A data and analytics layer that helps DAO members **evaluate matchmaker performance**, detect misbehavior, and make informed decisions about license renewal or revocation. We divide matchmaker governance into two main components within the DAO interface: 1. **Matchmaker Voting**\ A smart contract–based voting system that enables DAO members to **grant or revoke matchmaker licenses** through on-chain voting. Each vote is transparent, and every license is represented by a NFT that always has a time-limit and the matchmaker is required to renew it. 2. **Matchmaker Monitoring**\ A visual interface that connects to our analytics backend, showing **real-time data and historical metrics** about matchmaker activity. DAO members can review transaction performance, profits, and reliability to decide whether a matchmaker should keep its license. Together, these components form the foundation of a **community-driven governance model** for MuesliSwap. It ensures that matchmakers operate transparently, fairly, and in alignment with the DAO’s goals — building a more resilient and decentralized DeFi ecosystem on Cardano. # Matchmaker Voting Website on: The **Matchmaker Voting** system is the foundation of our DAO-based governance for managing matchmaker licenses on MuesliSwap. It gives DAO members the power to **decide who can operate as a matchmaker** by voting on license issuance and renewal. Each license is **valid only for a fixed time period** (in our case around 7 days). When this period ends, the matchmaker must request a new license. If the matchmaker does not receive **enough votes from DAO members**, the license simply expires and cannot be renewed. This creates a natural, transparent way to phase out underperforming or inactive matchmakers — without needing a separate revocation process. Through this time-based voting mechanism, the DAO ensures that only **trusted and actively supported matchmakers** can continue to operate, keeping the system decentralized, accountable, and community-controlled. #### How the Matchmaker Voting Works Before you can participate in matchmaker voting, you first need to **stake your governance tokens** in the DAO staking section. Once staked, you can use your staked tokens to **support** one or more matchmakers. Support is **infinite**, meaning that your staked tokens continue to count as votes for a matchmaker until you manually withdraw them.\ Before you can **unstake your governance tokens**, you must first **remove your support** from all matchmakers you are currently voting for. This ensures that every active vote is fully backed by locked governance tokens. **1. Active Licenses**
Here you can see all **matchmakers who currently hold a valid license**. Each entry shows the matchmaker’s name, address, renewal interval, and the total amount of voting support received. If a matchmaker has reached the quorum, their license is shown as **Active**, along with the total number of tokens supporting them. You can use the buttons below to: * **Add Support** – increase your voting weight for the matchmaker. * **Withdraw Support** – remove your existing support. * **View Details** – open the detailed matchmaker page. **2. Pending Licenses** This section lists **matchmakers who have applied for a license but have not yet reached the quorum**. They are still collecting votes from DAO members. As a DAO participant, you can review pending matchmakers and decide whether to add your support. If a matchmaker reaches the required number of votes before the interval ends, they will automatically receive an active license for the next term. **3. Matchmaker Details**
The detail page provides a full overview of a specific matchmaker’s current status, including: * **Wallet Address** – the main address of the matchmaker. * **Approval Votes** – how many votes the matchmaker has received versus the required quorum. * **License Status** – whether the license has passed or is still pending. * **Performance Overview** – (to be added) shows transaction and profit statistics once the monitoring API is integrated. You can add or withdraw your support for a matchmaker directly from this page. # Matchmaker Monitoring The **Matchmaker Monitoring** dashboard gives DAO members real-time insight into how matchmakers perform on MuesliSwap.\ It connects directly to our analytics backend, which analyzes transactions from the blockchain to show how each matchmaker behaves — including how much profit they generate and whether they follow DAO rules. This transparency helps the DAO make **informed voting decisions**. Before renewing a license or adding support to a matchmaker, members can check their performance, profitability, and activity level.\ Monitoring is an essential part of matchmaker governance, ensuring that operators act fairly and efficiently within the ecosystem. #### Overview: Monitoring Dashboard
The main monitoring screen lists all currently active matchmakers and summarizes key performance metrics for each one: * **Transactions** – The total number of transactions processed by the matchmaker. * **Total Profit** – The combined profit earned across all transactions. * **Average Profit** – The average profit per transaction, giving a quick sense of efficiency. * **Batcher Address** – The blockchain address of the matchmaker, allowing for verification. * **Status Tags** – Quick indicators showing whether the matchmaker’s activity is *Excellent*, *Mixed*, or *Monitored* based on their performance and adherence to DAO guidelines. You can click **“View Details”** to open the detailed page for any batcher.
The **Batcher Details** view provides a deeper breakdown of an individual matchmaker’s performance.\ Here you can analyze their activity over time and evaluate if they are operating responsibly within DAO standards. Key data shown: * **Batcher Address** – The wallet address associated with the matchmaker. * **Total Transactions** – Number of transactions processed. * **Total Profit** – Lifetime total profit in ADA. * **Average Profit** – Average profit per transaction. * **Maximum Profit** – Best single transaction result. * **Minimum Profit** – Worst single transaction result. * **Performance Status** – Indicates whether the batcher is *Following DAO Rules*. Below these metrics, the **Transaction History** table lists individual transactions, including: * **Transaction Hash** – Clickable identifier for blockchain verification. * **Timestamp** – When the transaction occurred. * **ADA Profit / Other Assets / Total Profit** – Breakdown of the batcher’s gains or losses per trade. #### How DAO Members Can Use Monitoring Data Monitoring data helps DAO members make **evidence-based governance decisions**: * Before **adding support** to a matchmaker, review their transaction history and performance metrics. * When a license period ends, check if the batcher has operated profitably and in compliance with DAO rules before voting to renew. * If a matchmaker consistently performs poorly or acts unfairly, members can simply **withdraw support**, preventing license renewal in the next cycle.