- VeChain Foundation, a Non-Profit organization, based in Singapore, launched its new decentralized exchange or DEX named ZumoSwap as an alternative to Vexchange, an AMM,automated market maker.
- Vexchange charges 1% slippage fees which is much more than the standard 0.3% slippage fees that Uniswap does on the Ethereum Protocol. ZumoSwap, however, will be cost-efficient and leverage several features.
- Contrary to its competitors like Ethereum, ZumoSwap will also motivate its users to transact and swap their tokens and stay active on the network.
The VeChain is evolving more and more with each passing day, and recently it deployed a new decentralized exchange or DEX, dubbed ZumoSwap. ZumoSwap was tailored as an alternative to the AMM (automated market maker) and liquidity provision protocol, Vexchange, which is already present on the network.
The ZumoSwap team addressed the most asked questions by VeChain users in a medium post: What is the need to launch another DEX when Vexchange is already functioning well?
To which, ZumoSwap answered that there is “something that doesn’t feel right” about its competitor.
Taking the inspiration from the most popular DEX on Ethereum Network, ZumoSwap showed data that suggested that Vexchange could charge high fees from its users.
Vexchange charges around 1 % slippage fee, which is a significant rise compared to the standard slippage fee of 0.3 % charged by Uniswap on the Ethereum Protocol.
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That’s why ZumoSwap is designed to provide users with a “native DEX” that is cost-effective and comes with multiple features.
“After careful thinking, we decided to get rid of ALL Uniswap + Web3 code and build from scratch. This is a VeChain project, not one of the Ethereum dApp.” claimed the team behind VeChain DEX.
The team also claimed that the DEX should be able to integrate with “any wallets that VeChain provides” and, as the team calls it, should work with “one-click swap.” They believe this will drastically improve the DEX users’ experience as it will eliminate the need to operate with two transactions to do a token swap for its users.
“On ZumoSwap, you only approve what you need to swap, and better yet, it is done within the same transaction you swap. No longer need to wait for two steps! Fast and secure.”
Adding to its list of features, ZumoSwap will also encourage VeChain users to stay active on the network and transact and swap their tokens. Its other competitors, such as Ethereum, do not encourage such activities, reads the post.
Hence, a protocol built for facilitating the transactions becomes less functional for users.
However, on ZumoSwap, users will be able to transact with a 0.3% slippage fee.
The platform also instilled an “Auto VTHO Farming” feature, which will allow users to keep their VTHO yields and hence provide liquidity to the DEX by supplying VET to the pools.
The ZumoSwap team also asserted that “no additional actions are required; you farm the VTHO like in your own wallet.”
This makes ZumoSwap an alternative DEX for users who want to generate more rewards with their VET and stay active on the VeChain ecosystem. ZumoSwap also has plans to launch its token in the future. In addition, it will also work with a fee delegation.
Although the ZumoSwap native token and its tokenomics will be explained later in the future nonetheless, the team behind the ZumoSwap revealed a possible airdrop:
“It will be released in a similar manner of Bitcoin, and details will be announced in the following articles. All Liquidity providers and traders and X Node holders will receive the airdrop.”
At the time of the writing, VeChain (VET) trades at $0.093673 with an 8.66% profit in the past day.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.