Zilliqa (ZIL), a high-throughput blockchain platform designed to scale almost linearly as the number of nodes scales, is set to enter the decentralized finance (DeFi) space with a decentralized exchange built by Switcheo.
Switcheo, it’s worth noting, is a cross-chain decentralized exchange first launched on the NEO blockchain, that then added atomic swaps and started letting users trade ERC-20 tokens as well. In an announcement, Switcheo announced the launch of Zilswap.
Zilswap is set to be a “fully on-chain, decentralized exchange running on Zilliqa.2 It was built by Switcheo’s developers and will use an automated market maker model on top of a permissionless liquidity protocol, similar to what Ethereum’s leading decentralized exchange Uniswap uses.
The announcement reads:
Zilswap will be at the core of Zilliqa’s push into the decentralized finance (DeFi) space by allowing users to trade digital assets on the Zilliqa blockchain for the first time.
Users will be able to trade ZIL and ZRC tokens directly on Zilswap using blockchain wallets, and will also be able to add liquidity to the exchange’s pool to earn passible as market makers from the fees the trading platform charges.
Zilswap is set to launch with an initial token pool for ZIL-XSGD, which will allow users to trade ZIL tokens for a stablecoin backed 1:! By the Singapore Dollar (SGD). The platform is set to then add various other token pools and launch a ZRC-2 governance token that will be attributed to those who add liquidity to the protocol.
Control of the platform will then move to a DAO controlled by those who own the governance token, Using their tokens, users will be able to determine various parameters, including how much is charged in fees on the trading platform.
Featured image via Unsplash.