Zilliqa launches its first-ever decentralized crypto exchange ‘Zilswap’, developed by the team of Switcheo, a DEX company.

Zilswap is a full on-chain decentralized crypto exchange running on Zilliqa, a scalable public blockchain platform. Zilswap is the latest addition to Zilliqa’s ecosystem in a plan to enter the DeFi territory.

Users Can Now Trade Digital Assets In Zilliqa’s History

For the first time, users can now trade digital assets on the platform. Zilswap uses a constant product automated market maker on top of a permissionless liquidity protocol, the same way as Uniswap.

Users can trade their ZIL or ZRC tokens directly over Zilliqa blockchain from their wallets or add tokens they are currently holding to a liquidity pool to earn as market makers. One can then acquire ZIL-XSGD as the first token pool. Holders of ZIL and XSGD can then contribute to add liquidity pools on the decentralized crypto exchange to earn a percentage from each trade.

XSGD is a stablecoin backed by the Singapore dollar.

ZRC-2 governance token on Zilswap Soon

Switcheo also plans to release a ZRC-2 governance token on Zilswap soon.  These governance tokens will be issued and distributed between the liquidity providers and the users of the decentralized crypto exchange platform. Control over the newly launched decentralized exchange will then be transferred to a DAO, which will be controlled by the owners of ZRC-2. Concerns such as protocol fees be will be under the review of the DAO. 

At a later stage, Switcheo will integrate Switcheo TradeHub with Zilliqa to leverage liquidity pooled into Zilswap.