IguanaDEX, a New Decentralized Exchange (DEX), 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.

A new decentralized exchange (DEX) called IguanaDEX has been launched on Etherlink, Tezos' Layer 2 rollup network. The platform allows users to trade and earn cryptocurrencies without using centralized exchanges or middlemen.

Trading and earning on IguanaDEX

IguanaDEX allows users to “TRADE your crypto and EARN more crypto.” The platform enables token swaps at market rates and permissionless creation of liquidity pools. It highlights the ease of the process: “All you need is an EVM wallet and some XTZ tokens on Etherlink.”

MetaMask, Rabby Wallet, and Coinbase Wallet are among the supported wallets.

Bridging tokens to Etherlink

Users may need to bridge tokens from other networks to Etherlink to participate. The Etherlink Bridge supports token transfers from various chains, including BNB Chain, Ethereum, and Polygon. A written guide is available to help users, showing 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.

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 emphasizes 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 highlights the risks and rewards of liquidity provision, stating that net profit or loss depends 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 priority for IguanaDEX. The platform is a “perfect fork of PancakeSwap,” utilizing the security audits conducted for PancakeSwap and Uniswap. Users can reference the audits from Uniswap v2 and v3, as IguanaDEX uses similar smart contracts without substantial changes.

Token addresses

For transparency, IguanaDEX provides the contract addresses for various tokens on Etherlink, including:

IGN Token: 0x6898686889980898098809809809809809809809

LP Tokens: 0x9898989898989898989898989898989898989898

WXTZ Token: 0x0000000000000000000000000000000000000000

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:

Now tracking @IguanaDEX on @etherlink

decentralized trading on Etherlink pic.twitter.com/TVwf1OmTwO

This integration 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 is 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 poised to become a key player in the growing Tezos ecosystem.

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