With the recent launch of the ZilSwap platform it will be possible to list any token based on the Zilliqa blockchain, so it is possible to create liquidity pools to exchange tokens in a decentralized way as it happens via Uniswap on Ethereum.
In this guide we will see just how the entire platform works and also how you can list your token within it.
By the way, creating a new token on the Zilliqa blockchain is very easy and cheap.
Before we start we will need a couple of things:
- ZilPay and the private key of the wallet;
- Some ZIL to cover the cost of the various fees for both the blockchain and to interact with the smart contract;
- Other ZILs if we want to participate in a pool or create our own.
The steps to list a token of the Zilliqa’s blockchain
The first step will be to unlock the ZilPay wallet and connect to the ZilSwap address, logging in by entering our private key.
Once inside the platform the main screen will show the possibility to make a swap so we can exchange our tokens.
The interface is quite simple and remembers the one of Uniswap. To exchange a token, we have to choose the token from the “Select Token” menu where we can also paste the contract address and then choose the second token to take, enter the quantity and click on the “Swap” button to confirm the transaction with our wallet.
We can also choose a receipt address for a third wallet and we can see the slippage percentage.
If instead we want to participate in a pool then we have to choose the pair, enter the tokens proportionally 50% for each, and then click the “Add Liquidity” button and confirm the transaction by paying the relevant wallet fees.
In this way our tokens will be transferred into the pool and we will get representative tokens of the pool that we can use to redeem later.
If we want to create a pool and then list one of our tokens, then we have to go to the “Pool” section and then click the “+ Create Pool” button.
In the next screen we will have to enter the address of the token we want to add and enter a quantity of ZIL always in proportion to 50%.
The advantage in creating a pool that does not exist yet is that we can set the price of the asset based on how many ZILs we will deposit.
Finally we will have to click on “Approve” and confirm the transaction with our wallet to complete the creation of the new pool.
And here we are, with our Zilliqa based token listed in an easy and cheap way. In this way we will be able to start getting the related pool fees every time an exchange is made.
You must always keep in mind the negative aspect of impermanent loss in case one of the tokens varies a lot in price and therefore the fact that you could have a loss compared to holding a token.