Quick take:
- Zilliqa (ZIL) has launched its first decentralized exchange, ZilSwap
- ZilSwap was built by the team at Switcheo
- There is a plan to transition control of ZilSwap to a DAO, complete with a governance token
- ZilSwap is at the core of Zilliqa’s push into the DeFi space
The Zilliqa Community is currently celebrating the launch of the blockchain’s first decentralized exchange aptly named ZilSwap. The ZilSwap DEX was built by the team at Switcheo with the main goal of catapulting Zilliqa into the world of Decentralized Finance.
The launch of ZilSwap was announced by the team at Switcheo via the following tweet.
🗣 We have just launched ✨ #Zilswap ✨ – @Zilliqa's first #DEX built by #Switcheo 😎 and we couldn't be more excited!
👉🏽 Head over to our blog to learn more about Zilswap, and how you can start trading on the platform today! ✅ https://t.co/3ZVeYxrbOa
— Switcheo (@SwitcheoNetwork) October 5, 2020
Plans to Transition Control of ZilSwap to a DAO
Just like Uniswap, ZilSwap will allow owners of Zilliqa based digital assets to trade seamlessly using a constant product automated market maker and a permissionless liquidity protocol.
The team at Switcheo also provided a roadmap for ZilSwap in which they pointed out that their core goal, is to eventually transition control of ZilSwap to a DAO controlled through a ZRC-2 governance token.
We’ll also be launching a ZRC-2 governance token for Zilswap soon. Moving forward, Zilswap will transition control of Zilswap to a DAO controlled by ownership of the governance token. Parameters such as protocol fees will be under the purview of this DAO.
Governance tokens will be issued to liquidity providers and users of the Zilswap platform – we’ll be announcing full details regarding this soon!
Zilliqa Stands to Benefit from the Launch and Use of ZilSwap
The world of DeFi has caught the crypto-verse by storm since early June and notable decentralized exchanges have gained popularity such as UniSwap, SushiSwap and JustSwap.
The launch and popularity of the aforementioned DEX’s has had a positive impact on the corresponding blockchains. In the case of Ethereum, usage of UniSwap and other DeFi protocols has resulted in ETH transaction volume growing by $109 million in the third quarter of 2020. Similarly, the launch and usage of JustSwap resulted in a 2,577% increment of transaction volume on the Tron network in Q3. The values of both ETH and TRX have also benefited positively from the increased network activity thanks to DeFi.
Therefore, similar positive benefits will begin to emerge in the Zilliqa ecosystem as ZilSwap gains traction with the ZIL trading community.