DEXes · Review

TeddySwap Review 2026: Cardano's Stablecoin-Focused DEX

TeddySwap is a decentralized exchange on Cardano built around stablecoin swaps and automated liquidity pools, listed on DefiLlama since December 2023. It suits users who want to swap stablecoins on Cardano and can accept the risks of a young, unaudited protocol.

Cardano

By the DappsAtlas editorial team · Updated Nov 5, 2026

DappsAtlas score

4.0/10

Weak

Visit TeddySwap

Our verdict on TeddySwap

4.0/10

TeddySwap is a stablecoin-focused decentralized exchange on Cardano that has been listed on DefiLlama since December 2023. Its main strength is a narrow focus on stablecoin swaps for Cardano users who want to stay on one chain. Its main caveat is the lack of a listed audit and the absence of published fee levels in the sources reviewed. Traders who want a clearly audited venue or detailed fee information should look elsewhere or wait for more published detail. Those who already hold Cardano stablecoins and accept protocol and issuer risk may find it useful for swaps.

Score breakdown

How TeddySwap scores

Security: 3.0/10
Ease of use: n/a
Fees: n/a
Features: 5.0/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is TeddySwap?

TeddySwap is a decentralized exchange on Cardano. The project describes itself as a scalable exchange and automated liquidity provision protocol for Cardano stablecoins and derivatives. DefiLlama lists it in the Dexs category, with Cardano as its chain and TEDY as its token.

The project has been public for some time. Early posts describe an incentivized testnet, and a later announcement says the exchange went live on Cardano mainnet. One of the sources also reports that the protocol had completed more than 10,000 transactions shortly after its launch.

DefiLlama does not show a total value locked figure or recent change for TeddySwap in the data used here, so the size of its current liquidity is unclear. The homepage could not be retrieved for this review, so product details beyond the listing and third-party descriptions are limited.

How TeddySwap works

TeddySwap is a decentralized exchange, which means trades happen through smart contracts on the Cardano blockchain rather than through a company holding user funds. The sources describe it as an automated market maker, a common design in DeFi.

In an automated market maker, each trading pool holds two or more tokens. The price comes from a formula based on how much of each token the pool holds, and it adjusts as trades move the balance. Stablecoin pools are designed for assets that should trade close to one another, which is why TeddySwap focuses on them.

Liquidity providers add tokens to a pool and earn a share of trading fees, while traders swap against that pool. Providers take on the risk that the price ratio between the tokens shifts while their funds sit in the pool, and that a stablecoin in the pool may lose its peg.

4 features

Key features

Stablecoin-focused trading

Trading pairs focus on stablecoins, which the project positions as its core use case on Cardano.

Automated liquidity pools

Liquidity providers deposit into pools that set prices automatically, rather than matching individual buy and sell orders.

Open-source protocol

The project describes its protocol as open source, so the code can be read by outside developers.

Derivatives and stablecoin support

The project lists support for Cardano stablecoins and derivatives in its description, alongside spot-style swaps.

Pros and cons

What we like

Focused on stablecoin trading, a narrower niche than a general-purpose exchange.
Operates on Cardano, which gives Cardano users a swap venue without bridging assets.
Describes its protocol as open source.
Has a public documentation site and a token with a published distribution plan.
Has been listed on DefiLlama since December 2023.

Watch out for

No audit is listed on DefiLlama, and no audit report is named in the sources reviewed.
The sources reviewed do not show current trading volume or total value locked, so the protocol's recent activity is hard to judge.
Stablecoin-focused pools carry issuer and depeg risk on top of ordinary smart-contract risk.
Fee levels are not stated in the sources reviewed, so costs are hard to compare with other Cardano exchanges.
The homepage could not be retrieved for this review, so the most recent product claims could not be checked.

TeddySwap fees

TeddySwap does not publish fee levels in the sources reviewed. Trading and liquidity fees, if any, would normally appear in the interface before a swap is confirmed, and Cardano network fees apply to every transaction on top of any protocol fee.

Is TeddySwap safe?

No completed audit is listed on DefiLlama, and none is named in the sources used for this review. Smart-contract risk is the main concern: a decentralized exchange holds user funds in contracts, and bugs or exploits can lead to losses that cannot be reversed.

Custody stays with the user in a self-custody wallet, so there is no company holding deposits. That removes exchange counterparty risk but places the full burden of key security on the user.

Stablecoin pools add issuer risk. If a stablecoin in a pool loses its peg or its issuer fails, the pool's value can fall. The project does not publish an incident history in the sources reviewed.

DeFi trading is not suitable for everyone. Check that online crypto trading is legal where you live.

7 steps

How to get started with TeddySwap

1
Confirm that using a decentralized exchange is legal and permitted where you live.
2
Set up a Cardano-compatible wallet and fund it with ADA for network fees.
3
Visit the project's official documentation to confirm the current app address and instructions.
4
Check the pool's stablecoin pair, its size, and recent activity before swapping.
5
Make a small test swap first and confirm the amount received and the fees shown.
6
If you want to provide liquidity, read how impermanent loss works before depositing.
7
Keep records of your transactions for tax reporting where required.

Open TeddySwap

Who TeddySwap is for

TeddySwap suits Cardano users who already hold ADA or Cardano stablecoins and want to swap between stablecoins on-chain. It also fits experienced DeFi users who understand impermanent loss and smart-contract risk and want to provide liquidity in stablecoin pools. It is less suited to first-time users who need audited, fully documented products.

TeddySwap FAQs

What is TeddySwap?

TeddySwap is a decentralized exchange on the Cardano blockchain. It is built around swapping stablecoins and offers automated liquidity provision for Cardano stablecoins and derivatives, according to its listing and project descriptions.

How does TeddySwap work?

TeddySwap is described as an automated market maker, so trades run against liquidity pools rather than a traditional order book. Users who provide liquidity deposit tokens into a pool and earn a share of trading activity, which also exposes them to price movements in the pool.

What is the TEDY token?

The sources reviewed name TEDY as TeddySwap's token and describe a protocol token distribution, but they do not give a full tokenomics breakdown. Readers should check the project's own documentation before relying on any token figures.

Is TeddySwap audited?

No completed audit is listed on DefiLlama, and none is named in the sources used for this review. Users should assume the smart contracts carry the normal risk of new DeFi code and should check for an audit report directly from the project before depositing funds.

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