SecondSwap Expands to Avalanche Blockchain to Revolutionize Locked Token Trading

SecondSwap, a decentralized exchange specializing in locked and vesting digital assets, has officially expanded its operations to the Avalanche blockchain. This move follows its successful launch on Ethereum earlier this year, marking a significant step in addressing inefficiencies in the secondary market for locked tokens, a sector reportedly holding over $100 billion in value.

The Problem with Traditional Locked Token Markets

Trading locked tokens has historically been limited to private, off-market transactions, which often lack transparency and present settlement risks. According to Kanny Lee, Founder of SecondSwap, “Today’s secondary market for locked tokens remains largely manual, opaque, and inefficient.”

SecondSwap aims to solve these issues by offering an on-chain solution. With the integration of smart contracts, the platform enables transparent pricing, verifiable asset transfers, and real-time settlement, eliminating the challenges associated with traditional methods.

How SecondSwap Works

SecondSwap provides a platform where projects can issue, price, and trade locked assets without relying on third-party intermediaries. Key features include:

  • A bidding mechanism allowing users to propose discounts and select preferred vesting periods.
  • Lot sizes with three, six, and 12-month lockup periods, making the market accessible to a broader range of investors.
  • On-chain price discovery and settlement for improved transparency and efficiency.

Early adopters who whitelist their wallets and place bids through the platform could potentially acquire discounted tokens compared to prevailing market prices, offering an attractive opportunity for investors.

SecondSwap’s Expansion to Avalanche

The expansion to Avalanche introduces native smart contracts specifically designed for token lockups, secondary trading, and price discovery. This aligns with Avalanche’s mission to enhance its DeFi ecosystem and support tokenized asset markets.

Justin Kim, Head of Asia at Ava Labs, commented, “SecondSwap perfectly aligns with Avalanche’s mission to digitize, democratize, and de-risk asset ownership.” By integrating with Avalanche, SecondSwap is positioned to tap into the blockchain’s growing DeFi infrastructure and user base.

Seed Funding and Future Plans

SecondSwap’s journey has been bolstered by a $1.2 million seed funding round led by GSR and Animoca Ventures. The company has ambitious plans to continue building tools for on-chain lifecycle management for token projects. These tools aim to reduce volatility tied to token unlock events and improve overall market efficiency.

As the platform expands, it underscores a broader trend in blockchain technology—the shift toward greater transparency, efficiency, and accessibility in financial markets. By addressing critical gaps in the locked token market, SecondSwap is poised to play a pivotal role in shaping the future of decentralized finance.

Post Views: 0