• Zilswap, the first Zilliqa-based decentralized exchanges has been launched on Monday.
  • This brings the blockchain ecosystem to the booming DeFi industry.

Switcheo, the company which built the first decentralized exchange (DEX) on Neo blockchain, has extended the crypto service to the Zilliqa blockchain. Today, the company informed in an announcement about the launching of a new DEX, Zilswap. This is a milestone for the Zilliqa community as Zilwap represents the first-ever decentralized exchange to exist on the blockchain.

Zilswap launches Zilliqa to DeFi market

Following the announcement, the development of the decentralized exchange stems from the already-existing partnership between Zilliqa and Switcheo, established sometime in March 2020. By hosting Zilswap, Zilliqa has reportedly gained access to the booming decentralized finance market. 

Basically, the DEX will facilitate the trading of digital currencies and the provision of liquidity to several pools on the blockchain. To start with, Zilswap has launched with the ZIL-XSGD trading pool. This will see investors trade the Zilliqa native token dubbed ZIL against the XSGD, a stablecoin backed by the Singapore-Dollar. Zilliqa’s move to the DeFi market is quite promising, given the advantages of the blockchain over Ethereum, which includes faster transaction processing. 

Zilliqa DeFi 

Additionally, the DEX is launching on a secure and anti-money laundering (AML) compliant blockchain platform. Last year, Zilliqa collaborated with Elliptic, a blockchain analysis company, to boost its AML and risk management standards. This covers the Zilliqa’s native token, including a stablecoin initiative powered by the Zilliqa blockchain.

Later on, a governance token, in the form of ZRC-2 token, will be created for the new decentralized exchange according to the announcement. The token will be allocated to Zilliqa users and liquidity providers on Zilswap. As the DEX matures, the governance will be handled to a decentralized autonomous community (DAO). The organization will equally oversee the protocol fees.