What is ZilSwap? How does it work?

What is ZilSwap How does it work

Zilliqa launched its Decentralized Exchange ‘Zilswap’ on Monday, October 5, 2020. A team of Switcheo developed the Zilswap Exchange. The Switcheo team announced the launch of Zilswap on twitter.

Zilswap is similar to Uniswap because it uses a product automated market maker and a liquidity protocol that is permissionless to help the users trade ZIL. It is possible for the users to trade ZIL or ZRC tokens from their respective wallets. Another way is to add their tokens to a liquidity pool to earn instantly as market makers.

How to swap tokens on Zilswap?

  • To swap tokens on Zilswap exchange you have to visit the official site https://zilswap.io/.
  • After visiting the site, the user should connect their ZilPay wallet. The users can do so by clicking the button at the top right corner of the page.

  • Next, you have to make sure you’re on the swap side and not on the pool section of the page.
  • You can then select the tokens you want to pay in and want to receive. You also have an option to select 25%, 50%, 75%, or 100% of the tokens you want.
  • There are various options of tokens like XSGD, SHARK, RedChillies, Samir Coin, Driftwood, Bolt Token, etc. to select from. If there is any token you haven’t heard before, make sure you do proper research before selecting that token.

  • Suppose you select Zilliqa with a value of 100 and you swap it with SHARK.

  • Now, for 100 ZIL you will get 2.83672 SHRK and 1ZIL = 0.028367SHRK.
  • Once you click confirm, the transaction is completed. After this, the SHRK tokens will directly enter into your ZilPay wallet.

How to add and remove liquidity from Pools on Zilswap? 

  • In Zilswap exchange, you can add your own pools.

  • Even in this section, you have multiple token options to choose from.

  • Let’s say you select 25% of BOLT tokens and then you have to put 100 Zilliqa into the pool to add liquidity.
  • Here, you can see that the exchange rate of 1 ZIL = 1.9818442BOLT. Also, the current Pools size is 261,080.5496 ZIL + 517,420.9905 BOLT.
  • This method is good for those users who want to make a little bit of income.
  • The best part about this platform is that you can launch your own tokens. Han Wen’s post on Twitter gives a clear idea about launching your own ZRC2 token on Zilliqa.

To create a pool, you have to click on the create button and add the contract address for your token.

Roadmap

  • There is a roadmap for Zilswap provided by Switcheo. The roadmap depicts that,
  • “The platform will launch with ZIL-XSGD as the first token pool, allowing users to enter or exit ZIL through the Singapore-Dollar (SGD) backed stablecoin, XSGD, launched by Xfers.”
  • Zilswap allows ZIL and XSGC holders to supply to the liquidity pools. With this contribution, they can earn rewards from the fees of each trade. If the user is not an XSGD holder, then he/she can convert SGD to XSGD. It is usually done at a 1:1 rate on an Xfers platform and the user should be an Xfers verified individual.

  • The team also mentioned about their future plans of launching ZRC-2 governance tokens in their blog.

About Zilliqa

Zilliqa is a high-performance, high-security blockchain platform used by enterprises and next-generation applications. Apart from the major developments in Zilliqa, this platform also addresses some limitations in scalability and security. In 2019, Zilliqa was the first public blockchain platform built on sharded architecture. The smart contracts used in Zilliqa were written in a secure-by-design programming language, Scilla. To know more about the Zilliqa platform, visit Zilliqa.com.

About Switcheo

Switcheo brings finance without limits for those without limits. Whether you’re a battle-weary trader or a newbie into the industry, there is nothing so secretive about cryptocurrencies on the Switcheo platform. To explore more about the Switcheo visit: https://switcheo.network/.

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