Zilliqa, a high-security blockchain platform, is set to launch a non-custodial and decentralized exchange (DEX) through a partnership with Switcheo, the first decentralized cryptocurrency exchange on the NEO blockchain.
The new exchange dubbed “Zilliqa DEX” would address the inadequacies of the current order book-based DEXs. It will enable users to undertake automatic digital asset exchanges without any intermediaries by leveraging a Uniswap-like exchange model, alongside an atomic swap protocol.
As per the announcement, the DEX will allow Zilliqa token traders and holders, to access other digital assets on the Ethereum blockchain, which Zilliqa says is essential in supporting the growth of its DeFi ecosystem.
“We believe that this partnership with Switcheo is essential to supporting the meaningful progress we’ve made for our stablecoin initiative, StraitsX, as more companies look to come on board,” the President and Chief Scientific Officer at Zilliqa, Amrit Kumar commented.
The Zilliqa DEX launches with API-based mobile wallet integrations, and a simplified onboarding process, which cuts off the need for the users and traders to sign-up to the exchange before they can access available trading services. Hence, ensuring that they can swap between different assets easily.
According to Ivan Poon, the CEO at Switcheo, the exchange will also leverage advancements like off-chain order matching engines as well as liquidity pools, which users can contribute, to enable a consistent market-making and at the same time, earn a discount on transaction fees.
Meanwhile, the development of the Zilliqa DEX is expected to be finalized by the end of 2020. The rounds of internal testing are set to begin by the end of Q2, while the external user acceptance testing with trading groups starts by the end of Q3.
Earlier in January, Zilliqa partnered with a privacy-focused blockchain solutions provider, Incognito Chain, to make transactions with its native cryptocurrency, ZIL, private and anonymous.