VeChain Foundation Welcomes New DEX To Its Ecosystem
December 23 2021 - 1:00PM
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The VeChain ecosystem continues to grow and recently saw the
deployment of a new decentralized exchange (DEX). Called ZumoSwap,
it was designed as an alternative to Vexchange, the automated
market maker (AMM) and liquidity provision protocol already
launched on this network. Related Reading | VeChain’s DEX To Launch
Governance Token And Yield Farming Program In a Medium post, the
team behind ZumoSwap addressed the questions most VeChain users
must be making: why launch a new DEX when Vexchange is already
functional? According to ZumoSwap, there is “something that doesn’t
feel right” about its competitor. Inspired in Uniswap, the most
popular DEX running on Ethereum, the team behind ZumoSwap presented
data that suggest Vexchange could have higher fees for its users.
In step of the standard 0.3% fee for slippage on Uniswap, Vexchange
charges around 1% which represents a significant increase when
compared to the Ethereum protocol. Therefore, ZumoSwap was created
to meet users demand for a “native DEX” capable of providing them
with an cost-efficient alternative and multiple features. The team
behind the VeChain DEX claimed the following: After careful
thinking, we decide to get rid of ALL Uniswap + Web3 code and build
from scratch. This is a VeChain project, not one of the Ethereum
dApp. The DEX should be able to integrate with “any wallets that
VeChain provides” and operate with what the team called “one-click
swap”. They claimed this will improve the DEX experience as it will
remove the need for users to operate with two transactions to make
a token swap. 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. The Many
Features Of ZumoSwap, A Native VeChain DEX In addition to the
aforementioned features, ZumoSwap will encourage VeChain users to
transact, to swap their tokens and keep themselves active. These
activities, the post claims, are discouraged on Ethereum and other
competitors. Thus, a protocol which was created to facilitate a
transaction become less usable as users are price out from the
platforms. In that sense, users will “always” be able to transact
with a 0.3% slippage on ZumoSwap. The platform has integrated an
“Auto VTHO Farming” feature. This will let users to keep their VTHO
yields and provide liquidity to the DEX by supplying VET to the
pools. The team behind the project claimed there are “no additional
actions required; you farm the VTHO like in your own wallet”. This
could make ZumoSwap an alternative for the users that want to
generate more rewards with their VET and keep themselves active on
the VeChain ecosystem. ZumoSwap will also operate with a fee
delegation mechanism and will launch a ZUMO token in the future.
The ZumoSwap native token and its tokenomics will be describe in
the future. However, the team behind the project did reveal the
following about a potential 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. Related Reading | VET Breaks
Major Trend Line, Why VeChain Could See Massive Explosion As of
press time, VeChain (VET) trades at $0,091 with a 4.8% profit in
the past day.
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