With a bull market in full run, we see Decentralized exchanges getting huge attention in crypto community accross the globe.
Users wants more freedom and no KYC (Know your customer).They want to be in full control of their crypto and if they can provide liquidity to earn more crypto daily,its a win-win.
Decentralized exchanges (DEX) are type of crypto exchanges which allows for direct peer to peer cryptocurrency transactions to take place online securely and without the need for any intermediary.
One of those new DEX’s is called ZILSWAP. Build on Zilliqa,world first high-throughput Blockchain which can handle more than 2500 transactions per second.Designed around of concept of sharding which means dividing the network into several smaller component networks that are able to process transactions in parallel.
ZILSWAP build by Switcheo team have open its gates to users in October 2020.
From very start we saw Total Value locked rise sharply.Now 8 months later TVL is $100.000.000.
How does it work?
To become liquidity providor you have to add minimum 1000 Zil tokens and same value of Token 2 into the pool and you will be rewarded with 0.3% trading fees and ZWAP token,which is an governance token of Zilswap platform.It empower stakeholders to take part in decisions governing the protocol.
*Swapping and Add Liquidity Tutorials can be found at the end of this article.
Total 6250 Zwap tokens are distributed accross the pools every week and your % depends of your share of the pool.Those rewards will be claimed weekly/per Epoch.
Some pools are giving mindblowing rewards with more than 100% APR.
With great rewards there is a potential risk,that risk is called Impermanent Loss,due to volatility of one asset or another that you are holding in the pool.
I would say this loss is small if you take into equation size of APR.
Every day we see new tokens are launching on Zilliqa blockchain.That is not suprise because Smart contract transactions cost around 4 zil tokens or $0.40.Comparing with ethereum fees on their DEX’s which are from $50 to $250 depending of the day.This is big advantage of Zilliqa blockchain.It will get only better because Zilswap team is building PolyNetwork Bridge with Ethereum so eth tokens can be traded on Zilswap with small fees.
This will bring more liquidity into Zilswap,more stability and lower the slippage when users are doing swaps.
References and tutorials :
Zilswap.io /Guide . Zilliqa Chrome Extention wallet Zilpay.io
How to do the swap:
How to provide liquidity: