On March 16, 2020, Singapore-based blockchain startup Zilliqa announced that it has partnered with cryptocurrency exchange Switcheo to bolster the decentralized finance (DeFi) ecosystem in the region by building a non-custodial, decentralized exchange (DEX).
With the new DEX, Zilliqa token holders will be able to tap into digital assets on the Ethereum (ETH) blockchain by leveraging a Uniswap-like exchange model along with an atomic swap protocol. This would enable traders to undertake automatic digital asset exchanges without the need for centralized intermediaries.
In essence, crypto users and investors on Zilliqa DEX will not need to sign up to the exchange to access trading services with its API-based mobile wallet integrations, allowing users to easily swap between different digital assets.
Amrit Kumar, President, and Chief Scientific Officer at Zilliqa remarked:
“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.”
He added that the opportunity to collaborate with one of the world’s leading decentralized exchanges was vital to garnering further ecosystem support and solidify Zilliqa’s position in the global DeFi ecosystem.
Defined as a combination of smart contract tech and a high-tech trading platform, Switcheo was developed to produce an advanced user experience fortified with ample security that protects EOS traders from hacks.
Why the Decentralization of Exchanges is Catching On
The decentralization of exchanges allows for greater security for both assets and privacy. According to Ivan Poon, CEO of Switcheo, decentralized exchanges have been recognized for the absence of centralized governance, which enables greater security and safety for users and their assets.
By leveraging advancements such as off-chain order matching engines and liquidity pools, the Switcheo CEO plans to provide Zilliqa token holders with world-class trading experience.
Moreover, this remarkable partnership is set to bolster the possibility of staking with ZIL tokens, which was announced about a week ago.
Switcheo’s Previous Partnerships For Multi-Chain DEX
Obolus is a blockchain development startup set up by scientists experienced in algorithmic trading that has created cutting edge decentralized trading tech.
The partnership with Obolus allowed Switcheo exchange to be one of the first non-custodial exchanges on the EOS blockchain, letting users retain ownership of their funds.