ZilSwap Review: Deep Dive into the Zilliqa DEX

By Robert Stukes On 13 Nov, 2024 Comments (24)

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Fee Comparison Table

DEX	Swap Fee	Avg. Gas Cost (USD)	Total Estimated Cost
ZilSwap	0.30%	$0.001	$0.301
Uniswap	0.30%	$1.50	$1.80
PancakeSwap	0.25%	$0.30	$0.55

Key Takeaways

ZilSwap is the leading DEX for Zilliqa‑based tokens, using an AMM model with a 0.3% fee.
Built on Zilliqa’s sharded architecture, trades settle in seconds with very low gas costs.
Liquidity providers earn a share of fees and can stake ZIL for additional rewards.
Smart contracts are audited and written in Scilla, giving a strong security baseline.
Limited to the Zilliqa ecosystem, so it lacks cross‑chain assets found on Uniswap or PancakeSwap.

ZilSwap is a fully decentralized exchange (DEX) that operates exclusively on the Zilliqa blockchain. Designed for swapping ZRC-2 tokens, ZilSwap uses an autonomous market maker (AMM) model based on the constant product formula (x*y=k). In plain terms, you trade directly against liquidity pools, not against another trader, which eliminates waiting times and counter‑party risk.

How ZilSwap Works

The heart of the platform is its AMM engine. The constant product formula ensures that the product of the two token reserves stays constant, automatically adjusting prices as you trade. This mechanism, first popularised by Vitalik Buterin, provides continuous liquidity even for less‑traded ZRC-2 pairs.

Because Zilliqa employs sharding, the network can process thousands of transactions per second. That means swaps on ZilSwap settle almost instantly and cost only a fraction of a cent in gas fees. For users, the experience feels like a fast, cheap swap on a centralized platform, but without any KYC or custodial risk.

Supported Tokens and Wallet Integration

ZilSwap natively supports the ZRC-2 fungible token standard and, increasingly, the ZRC-6 NFT standard. The most common pairings involve the native ZIL token and a variety of project tokens built on Zilliqa.

To start swapping, you need a compatible wallet. The platform’s primary recommendation is ZilPay Wallet, which offers seamless Zilliqa‑specific functionality. MetaMask also works via a custom RPC endpoint, giving users already familiar with Ethereum tools a quick entry point.

Fees, Liquidity Incentives, and Governance

Every trade on the exchange incurs a flat 0.3% fee, which is automatically deposited into the corresponding liquidity pool. Liquidity providers (LPs) earn a proportional share of that fee, creating a passive income stream. In addition, ZilSwap offers farming rewards: LP tokens can be staked to receive extra ZIL or platform‑specific tokens, boosting overall yields.

Governance is handled through on‑chain voting. Holders of the platform’s governance token (if deployed) can propose fee adjustments, new pool listings, or parameter changes. While still early, this model promises community‑driven evolution.

Security, Audits, and Smart‑Contract Design

All core contracts are written in Scilla, Zilliqa’s formally verifiable smart‑contract language. Scilla’s emphasis on safety reduces the attack surface compared with Solidity‑based contracts. Independent auditors have reviewed the code, and the audit reports are publicly accessible via the platform’s documentation hub.

At present, no major exploits have been reported, and the platform benefits from Zilliqa’s low‑level security architecture, including runtime checks against overflow and re‑entrancy.

Comparison with Other DEXs

ZilSwap vs. Multi‑Chain DEXs (2025 snapshot)
Feature	ZilSwap	Uniswap (Ethereum)	PancakeSwap (BNB Chain)
Primary Network	Zilliqa (sharded)	Ethereum (EVM)	BNB Chain (EVM)
Supported Token Standards	ZRC‑2, ZRC‑6	ERC‑20, ERC‑721	BEP‑20, BEP‑721
Average Swap Fee	0.30%	0.30% (plus gas)	0.25% (plus gas)
Typical Gas Cost (USD)	≈ $0.001	≈ $1.50	≈ $0.30
Liquidity Depth (ZRC‑2 pools)	Medium‑High (dominant for Zilliqa assets)	High (global)	High (global)
Cross‑Chain Capability	None (Zilliqa‑only)	Bridges available	Bridges available

In short, ZilSwap shines when you need fast, cheap trades of Zilliqa‑based tokens. If you’re looking for a broad, cross‑chain market, Uniswap or PancakeSwap may feel more comfortable.

User Experience, Support, and Education

The web UI is clean and mirrors the familiar layout of major DEXs: a simple swap pane, a liquidity‑add section, and a dashboard showing pool stats. New users can follow step‑by‑step guides directly on the site or watch tutorial videos such as Ron Tester’s February 2025 review, which walks through wallet connection, token approval, and slippage settings.

Customer support is available 24/7 via live chat, email, and a community Discord channel. The platform also offers webinars, live training sessions, and a comprehensive documentation portal that explains concepts like impermanent loss, slippage tolerance, and gas optimization.

Market Outlook and Future Developments

ZilSwap’s fortunes are tightly coupled with the growth of the Zilliqa ecosystem. Analysts project ZIL’s price to hover between $0.013 and $0.026 throughout 2025, with upside potential if projects like Metapolis gain traction. Increased adoption would drive higher trading volume and deeper liquidity pools on ZilSwap.

Future roadmap items include:

Potential cross‑chain bridges that keep the core DEX on Zilliqa while allowing external assets.
Expanded governance token utilities, enabling LPs to vote on fee splits.
Enhanced UI features such as limit orders and advanced charting.

If Zilliqa continues to deliver high TPS and low fees, ZilSwap is well‑positioned to remain the go‑to DEX for ZRC‑2 traders.

Bottom Line

For anyone invested in the Zilliqa ecosystem, ZilSwap offers a fast, low‑cost, and secure way to trade native tokens. Its AMM design, audited Scilla contracts, and generous LP incentives make it a solid choice. The main drawback is its single‑chain focus, which limits exposure to assets outside Zilliqa. As long as you’re comfortable staying within that universe, the platform delivers a ZilSwap review experience that rivals larger DEXs in speed and price.

Frequently Asked Questions

Do I need to complete KYC to use ZilSwap?

No. ZilSwap is a decentralized exchange, so you only need a compatible wallet. There are no identity checks or custodial steps.

What wallets are supported?

The primary wallet is ZilPay. MetaMask works through a custom RPC, and other Zilliqa‑compatible wallets such as GemWallet and Zeeves are also listed.

How are fees distributed?

The 0.3% swap fee is added to the pool’s reserves. LPs automatically earn a share proportional to their contribution each time a trade occurs.

Is ZilSwap secure?

Contracts are written in Scilla, audited by third‑party firms, and have no known major exploits as of October2025.

Can I trade non‑ZRC‑2 tokens on ZilSwap?

No. ZilSwap only supports Zilliqa standards (ZRC‑2 for fungible tokens and ZRC‑6 for NFTs). For other chains you’d need a multi‑chain DEX.