VeChain Foundation Welcomes New DEX To Its Ecosystem

Reynaldo Marquez

3 years ago

3 mins read

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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.

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 by Uniswap, the most popular DEX running on Ethereum, the team behind ZumoSwap presented data that suggest Vexchange could have higher fees for its users. Rather than 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 a 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, swap their tokens and keep themselves active. These activities, the post claims, are discouraged by Ethereum and other competitors.

Thus, a protocol that was created to facilitate a transaction becomes less usable as users are priced 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 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.

Congrats @zumoswap with the launch of a new DEX to swap #VeChain based tokens!

According to the team, ZumoSwap offers low cost, one-click swaps using multi-clause transactions & works on all official VeChain wallets among other features such as VTHO farming & more. https://t.co/nvw0VlChKC

— vechain (@vechainofficial) December 23, 2021

The ZumoSwap native token and its tokenomics will be described 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.

As of press time, VeChain (VET) trades at $0,091 with a 4.8% profit in the past day.

VeChain VET VETUSDT — VET with moderate profits in the 4-hour chart. Source: VETUSDT Tradingview

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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