Non-Custodial DEX Planned By Blockchain Startup Zilliqa And Switcheo

Blockchain startup Zilliqa has teamed with cryptocurrency exchange Switcheo to build a non-custodial, decentralized exchange (DEX).

Created by researchers at the National University of Singapore, Zilliqa aims to solve the issue of scalability of blockchains. Zilliqa’s platform is designed to scale to thousands of transactions per second. It is tailored towards enabling secure data-driven decentralized apps, designed to meet the scaling requirements of machine learning and financial algorithms.

Switcheo is the first decentralized crypto exchange on the Neo blockchain, which now allows trading of EOS, Ethereum, and NEO tokens. With an existing user base of over 34,800 traders around the world, Switcheo supports 24 cryptocurrencies and 43 market trading pairs to date.

The two companies are working closely together to develop Zilliqa DEX, which will leverage off-chain order matching engines and liquidity pools to enable consistent market-making and increased liquidity without the need for centralized intermediaries.

“Built from the ground up and designed to address existing inadequacies in today’s order book-based DEXs, the new Zilliqa DEX will leverage a Uniswap-like exchange model along with an atomic swap protocol, enabling traders to undertake automatic digital asset exchanges without the need for centralized intermediaries,” Zilliqa said in a press release. “In addition, users will be able to contribute to liquidity pools allowing for consistent market-making while enabling them to earn a cut of transaction fees, encouraging participation for token holders across the Zilliqa ecosystem.”

Envisaged to bolster the growth of Zilliqa’s DeFi ecosystem, the two parties will be working towards a minimum viable product by May 2020.

“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,” said Amrit Kumar, President and Chief Scientific Officer at Zilliqa. “The opportunity to collaborate with one of the world’s leading decentralised exchanges was one that we simply couldn’t pass up as we hope to garner further ecosystem support and look to solidify our position in the global DeFi ecosystem.”

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