IguanaDEX, a new decentralized exchange (DEX), has been launched on Etherlink, the Tezos Layer 2 rollup network. The platform enables users to trade and earn cryptocurrencies without relying on centralized exchanges or intermediaries.
Trading and Earning on IguanaDEX
IguanaDEX allows users to “TRADE your crypto and EARN more crypto.” The platform facilitates token swaps at market rates and permits the creation of liquidity pools without permissions. It emphasizes the simplicity of the process: “All you need is an EVM wallet and some XTZ tokens on Etherlink.”
Supported wallets include MetaMask, Rabby Wallet, and Coinbase Wallet.
Bridging Tokens to Etherlink
To participate, users may need to bridge tokens from other networks to Etherlink. The Etherlink Bridge supports token transfers from various chains, such as BNB Chain, Ethereum, and Polygon. A written guide is available to assist users, illustrating how to bridge tokens like USDT from BNB Chain to Etherlink. There is also a video from Trilitech below showing how to bridge tokens to Etherlink.
Notably, the bridge “will send a small amount of XTZ tokens to your address on Etherlink if you do not already have some in your wallet,” ensuring users have the necessary tokens to submit transactions on Etherlink.
Liquidity Provision and Rewards
IguanaDEX highlights the importance of liquidity provision for seamless token swaps. Users providing liquidity receive LP Tokens and earn rewards in the form of trading fees and IGN token incentives. The platform acknowledges the risks and rewards associated with liquidity provision, noting that net profit and loss depend on “the fees received by liquidity providers—which are paid by the traders—and the risk of impermanent loss.”
Security Audits and Contract Transparency
Security is a key focus for IguanaDEX. The platform is a “perfect fork of PancakeSwap,” leveraging the security audits conducted for PancakeSwap and Uniswap. Users can refer to the audits from Uniswap v2 and v3, as IguanaDEX utilizes similar smart contracts without significant modifications.
Token Addresses
For transparency, IguanaDEX provides the contract addresses for various tokens on Etherlink, including:
- Wrapped XTZ (WXTZ):
0xc9B53AB2679f573e480d01e0f49e2B5CFB7a3EAb
- Iguana Token (IGN):
0x17F9805664347022b59a8F67C1b8237b0AC5E89B
- Tether USD (USDT):
0x2C03058C8AFC06713be23e58D2febC8337dbfE6A
- USD Coin (USDC):
0x796Ea11Fa2dD751eD01b53C372fFDB4AAa8f00F9
- Wrapped Ether (WETH):
0xfc24f770F94edBca6D6f885E12d4317320BcB401
DefiLlama Now Tracking IguanaDEX
In a recent development, DefiLlama, a leading DeFi analytics platform, announced that it is now tracking IguanaDEX on Etherlink. The official DefiLlama Twitter account stated:
This inclusion enhances the visibility of IguanaDEX within the DeFi ecosystem and provides users with valuable data on the platform’s total value locked (TVL) and other metrics.
The launch of IguanaDEX on Etherlink represents a significant addition to the Tezos DeFi landscape. By offering decentralized trading and earning opportunities on a Layer 2 network, IguanaDEX aims to attract users seeking efficient and secure DeFi solutions. With support from platforms like DefiLlama, the exchange is positioned to become a key player in the growing Tezos ecosystem.
Disclaimer
Not Financial Advice: No content on this website constitutes investment, financial, legal, or tax advice. Users should not construe any such information as a recommendation to buy, sell, or hold any investment or security or to pursue any particular investment strategy.
Our articles due not endorse any projects/applications, nor due they constitute any financial advice. They are provided to simply inform our readers with readily available information that has been provided elsewhere.
Read our full disclaimer here.
