A pioneer smart exchange ecosystem, Unizen combines the elements of centralized and decentralized exchanges to introduce a hybrid platform with deep liquidity and minimal slippage.
The world of crypto markets has gained significant traction in recent years as more traders and investors seek opportunities in this burgeoning niche. Nonetheless, it continues to face substantial shortcomings and threats to its existence. Some of these challenges include high network fees, slippage, liquidity issues, security and KYC hurdles.
Unizen smart exchange has been designed to solve these shortcomings by combining a centralized (CEX) and decentralized (DEX) architecture – popularly coined as ‘CeDeFi’ by the crypto community. This hybrid platform is among the up-and-coming CeDeFi projects with the potential of changing the narrative for both crypto traders and investors.
So, what’s unique about Unizen compared to CEX and DEX exchanges that follow one model? Unlike counterpart exchanges, Unizen integrates crypto products and exchanges into one platform, reducing the trade execution time. Furthermore, the platform enhances risk mitigation by offering traders social sentiment indicators and limiting interaction to audited products.
Enhancing Liquidity with a CeDeFi Architecture
At the core, Unizen seeks to offer crypto traders compliant liquidity solutions. The project has partnered with AllianceBlock, which is building a globally compliant decentralized capital markets protocol. With this in place, traders and investors can search for their preferred KYC level instead of being limited by centralized exchanges. Of course, it also protects market participants when operating in the unregulated DeFi space.
Unizen’s CeDeFi architecture is supported by three major technical components: Unizen modules, third-party modules, and the Unizen custom logic. All three are especially important in building a sustainable hybrid ecosystem.
These are the modules that Unizen will build-out and integrate into the hybrid ecosystem over time. The first debut will be the platform’s CEX, which is compatible with Binance-shared liquidity. Unizen will expose crypto traders to more liquidity and reduce the slippage in their trading operations. This module will also allow Unizen to list more fundamental projects before launching its third-party DeFi modules.
Unizen third-party modules are the pillars for integration with decentralized digital asset markets. The smart exchange will enable these modules through a software development kit (SDK), providing versatile APIs that DeFi developers can use to integrate new modules. As part of its compliant liquidity provision, the platform will honor the set security requirements to protect DeFi traders and investors.
Unizen Custom Logic
This technical component is the one that will harmonize operations within the Unizen smart exchange ecosystem. It is set to be built iteratively to improve as more new partners are added to the platform. Most importantly, Unizen Custom Logic will house the cross-chain trade aggregation algorithm and the AI-focused social sentiment indicators. The latter will be offered in collaboration with LunarCrush.
Getting Started on Unizen
While still in its early stages, Unizen has already launched its governance token dubbed ‘ZCX’. This token was made available to the public in April 2021 through the Launchpool Allocation Mining Event (MNE). Currently trading on Uniswap and Bilaxy exchange, the ZCX governance token sets the stage for Unizen’s launch of a multi-assets reward staking initiative, scheduled to launch in Q2.
Unizen also launched a rewards program to attract liquidity providers on Uniswap. Traders and investors who lock their ZCX and ETH for over a month receive a portion of the allocated monthly rewards, depending on the amount they have locked. This rewards pool allocates liquidity providers with $30,000 worth of ZCX tokens every month.
Getting started on the ZCX-ETH rewards pool on Uniswap is pretty seamless;
- Start by whitelisting your ETH address through this link.
- Once done, visit Uniswap and select the ZCX-ETH pair to ‘add liquidity’.
- Input the amount of ZCX tokens you want to allocate to the liquidity pool.
- Confirm the liquidity provision by approving the ZCX transaction on Metamask – this may take some time, best if you adjust the gas fee to medium or high.
- Once confirmed, click on ‘supply’ and proceed to accept the transaction on Metamask – you should be set to start earning rewards in a month.
Following this progress, Unizen will launch a dynamic multi-assets rewards program on Binance Smart Chain (BSC). This means that liquidity providers have an opportunity to receive rewards in multiple digital assets, including the native ZCX governance token. Funds to cover this rewards program will be sourced from Unizen’s upcoming incubator ZenX Labs, listings and node hosting.
How do Crypto Traders and Investors Benefit from Unizen?
The Unizen smart exchange ecosystem will provide a cutting edge to crypto traders looking for deep liquidity and minimal slippage. Founded under Zen Innovations Pte Ltd, this hybrid smart exchange enjoys the backing of an experienced team led by CEO Sean Noga. He is also a managing partner at JUN Capital Management Ltd, a crypto VC and strategic advisory company. Other key members of the firm are Martin Granstrom (CTO), Tom Sweeney (COO) and Brandon Dallmann (CMO).
So far, the number of wallets that have interacted with Unizen is past the 3,000 mark. The team expects more crypto traders and investors to start using the hybrid exchange once fully launched. According to a milestone update, Unizen will launch additional products and tools throughout 2021. They include dynamic multi-asset staking, ZenX Labs incubator, CEX module, Third-Party DeFi module, trade aggregation modules, social sentiment indicators, SDK toolkit, and DAO governance.
How will these benefit crypto traders and investors? Let’s take a look at some of the advantages of leveraging the Unizen smart exchange over other ecosystems.
Whether a seasoned or new trader, liquidity is one of the main factors in any market. Market makers and takers are better off trading in a market with deep liquidity as opposed to one with shallow liquidity. In the former, trades are more likely to be executed in a timely fashion, while the latter case may take a while.
Unizen’s hybrid ecosystem combines the best of centralized and decentralized exchanges by bringing products and exchanges under one umbrella. In this case, you can search from a wide range of options for a product or exchange that suits your needs without worrying about liquidity.
Slippage is the % change in the quoted price of an asset and the actual execution price. This is a big challenge for crypto traders, given the volatile nature of the market. However, slippage can be minimized if more liquidity is concentrated within a particular platform – the Unizen value proposition. Notably, the integration of products and exchanges also eliminates the need to shift from one exchange to another to pursue better deals.
Security and KYC compliance
Security and compliance should be at the forefront of every crypto trader’s overall strategy. Unizen’s architecture will simplify both processes through in-built tools and resources from partners like AllianceBlock and LunarCrush. Trading on this hybrid platform could come in handy as an automatic risk mitigation approach – it is further complemented by social sentiment indicators which can inform you of the market mood.
Unizen’s Governance Token, ZCX
ZCX is a utility token built on the Ethereum blockchain under the ERC-20 standard. However, it can also be mirrored on BSC by converting it into the BEP-20 standard. That said, the ZCX (BEP-20) token is the one that will be used for dynamic multi-asset staking on BSC.
As for tokenomics, this utility token is deflationary by nature which means that supply dwindles as ZCX tokens are burned over time. Burning involves the complete elimination of some circulating tokens by sending them to an unrecoverable wallet address. In Unizen, the burning process will be triggered by paid listings on the upcoming CEX module.
ZCX will also be used in the DAO governance of Unizen’s decentralized ecosystem as a utility token. Token holders with this governance token will have a voice in the direction of Unizen’s growth when the DAO governance is launched in Q4 2021.