Project Overview

Zealous Swap is positioned as the first Automated Market Maker (AMM)-based decentralized exchange (DEX) built specifically for the Kaspa ecosystem. Its core mission is to provide a secure, efficient, and user-friendly platform for token trading, laying the groundwork for robust DeFi infrastructure on Kaspa. The project emphasizes several key features designed to enhance the trading experience and ensure protocol stability:

• MEV Resistance: Leveraging Kaspa’s unique blockchain architecture, Zealous Swap aims to offer natural protection against Miner Extractable Value (MEV), thereby mitigating common issues like sandwich attacks and front-running that can disadvantage traders.

• Protocol Owned Liquidity (POL): This mechanism ensures permanent platform liquidity, providing consistent trading capabilities regardless of fluctuating market conditions. This approach aims to create a more stable and reliable trading environment.

• Modular-Fee Engine: Zealous Swap incorporates a flexible fee system that allows for customized fee tiers across different token pairs. This includes the implementation of extremely low fees for stablecoin swaps, optimizing trading costs for users.

• Insurance Fund (IF): A portion of the protocol’s fees is directed towards an Insurance Fund. This fund acts as a protective measure against potential exploits or technical vulnerabilities, offering an added layer of security for users’ assets.

These features collectively underscore Zealous Swap’s commitment to building a sustainable and resilient DeFi platform within the Kaspa ecosystem.

Zealous Swap Testnet Airdrop: Step-by-Step Guide

This guide will walk you through the necessary steps to interact with the Zealous Swap testnet and qualify for the confirmed airdrop. Zealous Swap has confirmed that 2% of their total supply will be distributed to testnet participants.

Before you begin:

•Ensure you have MetaMask or Rabby Wallet installed and configured for the Kaspa testnet. It is recommended to use a burner wallet:

1. Claim Testnet Tokens from Faucet

• Navigate to the Zealous Swap Faucet: https://faucet.zealousswap.com/
• Connect your MetaMask wallet.
• Claim your testnet KAS tokens. You may need to wait a few moments for the transaction to process.

2. Perform Swaps

• Go to the Zealous Swap Testnet platform: https://kasplex-testnet.zealousswap.com/swap
• Connect your MetaMask wallet.
• Select a token pair to swap (e.g., KAS to tZEAL).
• Enter the amount you wish to swap.
• Confirm the transaction in your MetaMask wallet.
• Perform several swaps with different token pairs and amounts to ensure diverse interaction with the protocol.

3. Add Liquidity to a Pool

• Go to the ‘Liquidity’ section: https://kasplex-testnet.zealousswap.com/liquidity
• Select a token pair for which you want to provide liquidity (e.g., tZEAL/WKAS).
• Enter the amounts for both tokens you wish to deposit. Ensure you have a balanced amount of both tokens.
• Approve the tokens for spending if prompted.
• Confirm the ‘Add Liquidity’ transaction in your MetaMask wallet.

4. Stake LP Tokens in Farms

• Go to the ‘Farms’ section: https://kasplex-testnet.zealousswap.com/farms
• Identify an active farm that supports the LP tokens you just received from adding liquidity.
• Deposit your LP tokens into the chosen farm.
• Confirm the staking transaction in your MetaMask wallet.
• You can choose to withdraw your LP tokens and claim rewards later, or leave them staked to accumulate more rewards.

5. Stake ZEAL and NACHO Tokens

• Go to the ‘Stake’ section: https://kasplex-testnet.zealousswap.com/stake
• If you have a Nacho Kat NFT, you can stake your NFT for voting power.
• Stake tZEAL tokens in Infinity Pool
• Stake NACHO tokens in Nacho Pool

6. Submit Feedback Form (Optional)

• If you have encountered a bug or would like to give feedback, fill in and submit the form to the team: https://docs.google.com/forms/d/e/1FAIpQLSeU3zuIIqfftC-EuKsk-zk6RSVSVKeQ5Q8dcvcgANP12oO95A/viewform

Team Information

Zealous Swap is developed by a dedicated team possessing extensive experience in both blockchain technology and decentralized finance. The project is co-founded by Louis Saad and Ramy Lahoud. Their collective vision is centered on establishing the financial foundation for the Kaspa ecosystem. The team operates under a set of core values that guide their development and community engagement efforts:

•Innovation: A commitment to pioneering novel solutions tailored for emerging blockchain ecosystems.

•Security: Prioritizing the safety of user assets and the overall integrity of the protocol.

•Community: A strong emphasis on building the platform collaboratively with and for the Kaspa community.

•Sustainability: Dedicated to creating systems that are designed for long-term viability and growth.

The team also acknowledges the partnership with the Nacho team for integrating the NACHO KAT NFTs collection, and expresses gratitude to the broader Kaspa community for their continuous support and feedback.

Funding Information

The funding model for Zealous Swap primarily involves a strategic allocation of its native token, ZEAL. A significant portion, specifically 20% of the total ZEAL token supply (equivalent to 48,000,000 tokens), has been earmarked for sale. The organization and execution of this sale are managed by the Nacho Team, with the sale expected to take place on Kaspa.com. A substantial portion of the funds generated from this token sale, 70% of the collected capital, is designated for bootstrapping initial liquidity into the protocol. This approach aims to ensure sufficient liquidity from the outset, facilitating smooth trading operations and supporting the overall health of the ecosystem.

Revenue Model

Zealous Swap’s revenue model is intricately linked to its operational mechanisms, primarily through its Modular-Fee Engine. This engine enables the protocol to implement custom fee structures for various token pairs, including highly competitive, low fees for stablecoin swaps. The fees generated from these transactions serve multiple purposes:

•Insurance Fund Contribution: A portion of the collected protocol fees is channeled into the Insurance Fund, as previously mentioned. This fund acts as a critical safety net, providing protection against unforeseen technical issues or security breaches, thereby safeguarding user assets and maintaining protocol stability.

•Protocol Owned Liquidity (POL): The revenue generated also contributes to the Protocol Owned Liquidity. By accumulating and owning its liquidity, Zealous Swap reduces its reliance on external liquidity providers, ensuring more consistent and reliable trading conditions. This also allows the protocol to capture a larger share of the value generated from trading activities.

Through these mechanisms, Zealous Swap aims to create a self-sustaining economic model that supports its long-term development and operational stability.