- Switcheo launches Zilswap, the first DEX built on top of Zilliqa’s blockchain.
- Zilswap is a fully on-chain DEX that allows users to trade ZIL or ZRC tokens.
- Zilswap might be a strong competitor against Uniswap.
- Zilliqa’s mainnet will also undergo a staking-related upgrade.
After 7 months in the making, Switcheo has launched Zilswap, the first decentralized exchange (DEX) built on top of Zilliqa’s blockchain. Zilswap DEX will be at the forefront of Zilliqa’s move toward decentralized finance (DeFi).
Inspired by Uniswap’s DEX protocol, Zilswap aims to be a faster and cheaper exchange for the users. Moreover, it may drive the price of ZIL, Zilliqa’s native token, to bullish.
Zilswap: Zilliqa’s ticket to the DeFi world
As recently announced by Switcheo, Zilswap is the newest addition to Zilliqa’s ecosystem. It is a strategic move to enter the DeFi scene as users can now trade digital assets on the Zilliqa blockchain for the first time.
Zilswap has been on the works starting March 2020 when Zilliqa partnered up with Singapore-based Switcheo. Zilswap is a fully on-chain DEX that allows users to trade ZIL or ZRC tokens from their wallets or join a liquidity pool for passive income.
The platform will launch ZIL-XSGD as its first token pool. Here, users can exchange their ZIL tokens to the Singapore Dollar (SGD) backed stablecoin, XSGD. This stablecoin is introduced by fintech payment provider Xfers, another Zilliqa partner that is accredited by the Monetary Authority of Singapore.
What is more, a ZRC-2 governance token will also be launched soon, as well as an Ethereum (ETH) bridge to expand its services further.
📢 Calling token holders & arbitrageurs to:
⚡️Provide liquidity for the pair & earn transaction fees
⚡️Sign up to maintain ZIL/SGD peg on the ZIL/XSGD pair
— Zilliqa (@zilliqa) October 5, 2020
Zilswap to be better than Uniswap
With the release of Zilliqa’s own DEX, the DeFi community on Twitter is bracing for a strong competition against Uniswap DEX. Built by Switcheo developers, Zilswap also uses a constant product automated market maker (AMM) on top of a permissionless liquidity protocol, similar to Uniswap.
One DeFi user said that once the ETH bridge has been implemented in Zilswap, high fees will be gone. This is ideal as gas fees continue to surge and yet the ETH 2.0 release seems to happen later than expected, considering that its latest Spadina testnet still experienced challenges during its launch.
Another DeFi user clearly stated the advantages offered by Zilswap over Uniswap:
#Zilswap is here folks!
– 100,000x less fee than Uniswap
– ETH bridge. Trade ERC-20 tokens coming soon
– Easy UI/UX. Faster trasactions
– Regulated fiat pairs (XSGD)
– GOVERNANCE TOKEN soon! ? AIRDOP
– ZIL DeFi/OpFi
— maverick.zil (@kishelap) October 5, 2020
In reality, Zilliqa addresses limitations in scalability and security by being the first public blockchain platform to be built on sharded architecture. Its smart contracts are written in the platform’s own secure-by-design programming language, Scilla.
According to the Zilliqa community, this makes Zilswap a better option in terms of digital asset exchange and yield farming.
Eventually, as the adoption of Zilswap increases, the demand for ZIL is also anticipated to go higher because of its use as a medium of exchange. Like Uniswap’s UNI token, Zilswap will also have its own governance token, showing the DEX’s strong potential.
More earning opportunities for ZIL holders
Zilliqa’s mainnet will also undergo a staking-related upgrade that brings more profitable opportunities for the users. The much-awaited non-custodial staking will go live on its mainnet on October 14.
Just in time with Zilswap’s launching, ZIL holders can now earn more by staking their ZIL tokens to earn a good annual percentage rate (APR) of 5-7% farming gZIL, which is a new asset that they claim will advance the network’s governance mechanism and help earn trading fees on ZilSwap.
These major updates to the Zilliqa blockchain put it into a strong position within the DeFi ecosystem. Alongside this is an anticipated growth to ZIL’s price. ZIL is ranked 62nd at the time of writing, with a price of $0.019.
With a trading volume of $63,121,770, ZIL recorded a -7.8% loss within the last 24 hours.