What is MuesliSwap MILK (MILK)?

Deep Dive

1. Purpose & Value Proposition

MILK powers MuesliSwap’s ecosystem, focusing on:
- Governance: Holders vote on token listings, protocol upgrades, and feature prioritization.
- Staking: Users earn new Cardano tokens by staking MILK, incentivizing long-term holding.
- Fee Discounts: Holding >100 MILK reduces trading fees, aligning token utility with platform usage.
- Early Access: MILK grants priority access to MuesliPad, a token launchpad for new projects.

The DEX differentiates itself with an order book model, enabling limit orders and precise pricing—a rarity in Cardano’s AMM-dominated DeFi landscape.

2. Technology & Architecture

MuesliSwap uses Cardano’s Extended UTXO (EUTxO) model to implement its order book system, which:
- Prevents Frontrunning: Transactions settle atomically, eliminating MEV exploits common in Ethereum-based DEXs.
- Supports Limit Orders: Traders set exact buy/sell prices, contrasting with AMMs’ liquidity pool pricing.
- Modular Design: Allows integration of features like an NFT marketplace and launchpad without protocol bloat.

A January 2024 migration to MILKv2 added decimal support, improving transactional flexibility without altering supply dynamics.

3. Risks & Challenges

• Adoption Hurdles: Despite launching in 2021, MuesliSwap’s 24-hour volume (~$1M) remains low compared to rivals, signaling liquidity concerns.
• Token Performance: MILK’s 91.5% annual decline (as of June 2025) suggests weak demand or sell pressure, possibly due to limited use-case expansion.
• Regulatory Uncertainty: As a governance token, MILK could face scrutiny if regulators classify it as a security.

Conclusion

MuesliSwap MILK combines innovative order book mechanics with Cardano’s security but struggles with adoption and token sustainability amid broader market headwinds. How might MuesliSwap’s integration with Milkomeda (Cardano’s EVM sidechain) impact MILK’s utility and cross-chain demand?