In-depth Analysis of PoseiSwap — The First DEX on Nautilus Chain
Recently, the launch of the Triton testnet by Nautilus Chain, the first Layer3 concept blockchain, has garnered attention. After a month-long Triton I testing process, the Nautilus Chain community surpassed 200,000 members. The testnet also recorded over 180,000 registered addresses for incentive activities and over 500,000 on-chain interactions. Nautilus Chain has entered into strategic partnerships with more than 20 ecological partners, such as Celestia, MultiChain, Eclipse, and Galxe. Zebec Labs, the foundation of Zebec, has also launched an ecosystem support fund of up to $20 million.
PoseiSwap, the first on-chain project on Nautilus Chain to receive investment from Zebec Labs, has raised $1.5 million. As the first DEX to plan an airdrop on Nautilus Chain, PoseiSwap has attracted the majority of users on the chain.
This article will provide an in-depth introduction to PoseiSwap to help readers understand and familiarize themselves with the project.
Why PoseiSwap chooses Nautilus Chain?
- Technical Features of Nautilus Chain
Nautilus Chain is currently the first Layer 3 chain in the cryptocurrency industry, which is introduced and incubated by the Zebec ecosystem community. Positioned as a flow payment protocol and aimed at reducing the global wealth gap, the Zebec Protocol had previously conducted an in-depth exploration of Solana and achieved remarkable results. In order to better serve the Web3 world and accelerate the integration of Web2 and Web3, Zebec Protocol gradually plans to develop from a protocol into a public chain. In addition to expanding and migrating to other public chains like BNB Chain and Near, the launch of Nautilus Chain is an important step towards this goal.
In terms of features, Nautilus Chain is the first parallelized and fastest-running EVM Rollup L3 expansion solution. As the first modular chain, storage, computing, consensus, and other components are in different modules, meaning that it can obtain higher scalability and expansion capabilities. It also further improves network throughput, security, and privacy on the basis of Layer 2. According to data from the “Triton” test network, Nautilus Chain TPS data exceeded 2000 during the testing period. Nautilus adopts the Celestia modular underlying layer and uses ZK Rollup technology to increase privacy. When applications in the ecosystem want to achieve more functions, reduce operating costs, enhance security, and gain more sovereignty, they can do so. Developers, can choose the most suitable solution from a wide range of modules, and then choose to develop DAPP-Chain, DAPP-Rollup, or DAPP-Subnet accordingly.
As a Layer 3 solution with modular features, Nautilus Chain has significant differences from current Layer 1 and Layer 2 solutions. Layer 1 is a single-chain network where consensus, transactions, settlement, and execution are all processed on a single chain. While Layer 1 has high security, it often suffers from low efficiency and high costs. Layer 2, on the other hand, can help the Layer 1 scale, but typically only focuses on a specific Layer 1 network, such as Ethereum.
The Nautilus Chain was designed to address these limitations. It allows developers to stack different chains as layers, creating a “chain stack” that will enable developers to create unique, highly customizable base layers that are tailored to their specific projects and needs.
Of course, Nautilus is different from other Layer 3 solutions like StarkWave in that it uses Celestia for consensus and data availability, and Eclipse for transaction settlement.
As a parallel processing layer, Nautilus Chain can help build scalability for the execution layer in the EVM environment. In the future, developers will be able to seamlessly and easily switch to Nautilus Chain.
Nautilus’s EVM compatibility is another aspect that sets it apart from other Layer 3 solutions. By using the popular Web3 programming language Solidity, Nautilus provides builders with a high-throughput foundation to build the next generation of financial and payment dApps.
Therefore, Nautilus focuses on providing payment infrastructure for the world, achieving this goal by providing a scalable EVM environment for builders that is flexible enough to create any necessary financial dApp and allows Web3 technology to offer a neutral, decentralized, and permissionless financial track for the world. In the future, Nautilus Chain will move beyond the initial Optimistic Rollup and further towards Zk Rollup, which can truly bring customization, better performance, and lower costs to Nautilus Chain. As an ecosystem with a primary focus on streaming payments, security, transaction efficiency, and cost are the most critical considerations.
2. Future Development Potential
The high scalability, excellent transaction efficiency, sharing, and privacy features of Nautilus Chain mean that it has the potential to deeply serve the Web2 world and support multiple scenarios, such as traditional finance and payments. In the future, Nautilus Chain will not only be focused on Web3 developers but will also attract a large number of Web2 developers and traditional companies. In fact, the Zebec ecosystem is actively pushing in this direction.
We see that the Zebec Foundation has raised a dedicated acquisition fund and hired a team of Wall Street veterans to search for and execute acquisitions for Zebec. They have already acquired several Web2 companies and attracted two new clients from the Fortune 500. Based on this, Zebec is expected to attract more than 100,000 real users this year, processing a total of more than $1 billion.
In addition, the Zebec ecosystem has also launched a partnership with Mastercard to introduce the Zebec Card Mastercard, which is the world’s first real-time salary card for converting cryptocurrency to fiat currency, and is now available in 27 countries/regions. These developments will lay the foundation for the long-term development of Nautilus Chain, making it the blockchain underlying system that is closest to the Web2 world and potentially serves the mainstream.
3. What can Nautilus Chain bring to PoseiSwap?
The most obvious benefit that Nautilus Chain can bring to PoseiSwap is a different kind of underlying support, including efficient, secure, and private transactions. This has allowed PoseiSwap to gain a head start in the early stages of its operation, providing users with a better trading experience. As Nautilus Chain continues to develop, it is expected to bring a significant amount of funding and user traffic to PoseiSwap. The technological advantages provided by Nautilus Chain will provide the development impetus for PoseiSwap, enabling it to reach its full potential.
In addition, PoseiSwap itself has a grander development goal, which coincides with Zebec’s goal of incubating the Nautilus Chain ecosystem. The two have highly aligned philosophies.
The Origin of PoseiSwap
Compared to traditional finance and centralized exchanges (CEX), decentralized exchanges (DEX) in DeFi have made significant progress in providing users with more access, freedom, and financial control. However, as the demand for decentralized trading has grown exponentially, DeFi has reached a turning point, especially in Layer 1 blockchains like Ethereum, which has led to some problems that even developers find difficult to solve.
On the one hand, high costs are a major issue when using DEX for trading, as it can result in high transaction fees, slippage, and gas costs, especially when you need to complete a transaction immediately. Although DEX transaction fees are different from gas fees on the blockchain, they are still related to some extent, as DEX transaction fees are still affected by network congestion and gas required to execute transactions, which could make running a DEX on a blockchain very expensive. In addition, if the Layer 1 blockchain becomes too congested, gas fees on Layer 2 networks may also increase.
Secondly, there is a lack of privacy. Although transparent and anonymous transactions are one of the advantages of DeFi, it has also become a weakness, as DeFi mainly relies on public ledgers. Even though your identity is still disguised, every time you make a transaction on the blockchain, a permanent record is left on the ledger. In short, your DEX transactions can easily be seen by anyone. This approach poses a challenge for traders who may not want to disclose their trading volume and strategies.
Lastly, non-compliance is a concern. In recent years, various countries have implemented or proposed multiple regulations on the cryptocurrency industry, and it is expected that more regulations will be implemented in the future, especially considering the government’s interest in addressing consumer protection issues, making the market more stable, and preventing criminal activities such as theft and money laundering.
On this basis, PoseiSwap aims to address the many issues that plague other DEXs, such as high costs, lack of privacy, and non-compliance, in a fast, private, and compliant manner.
Specifically, the benefits that PoseiSwap obtains from Nautilus Chain
Efficient and Low-cost
PoseiSwap operates on the Nautilus Chain, which has implemented a modular integrated chain with an initial TPS of over 2,000 — much higher than other EVM chains. As Nautilus developers and PoseiSwap utilize the modular features of Nautilus to create application-specific integrations, TPS is expected to increase significantly.
Privacy
PoseiSwap aims to address privacy issues by allowing users to trade using zk-tech, which will soon be launched on the Nautilus Chain, without the need for additional measures. This is a significant advantage for traders who want more privacy and protection in their trades.
Compliance
PoseiSwap aims to comply with regulations by having an asset permission pool and a module that complies with OFAC standards. PoseiSwap will provide a secure place for all users to trade without worrying about upcoming regulations. This will be essential as licenses and regulations begin to take effect in the DeFi industry.
Function Modules of PoseiSwap
PoseiSwap is currently a DEX that provides token trading and liquidity provision services, liquidity mining, and staking. However, PoseiSwap’s vision is not just to be a DEX. It plans to expand the scope of DeFi from Web3 to the real world and achieve this goal by integrating blockchain technology into traditional financial systems.
By 2024, PoseiSwap plans to allow trading of real-world assets on its DEX, including tokenized stocks, bonds, and physical assets, as well as FTs, NFTs, and other digital assets. This will help bridge the gap between traditional finance and blockchain and bring new possibilities to the financial sector.
PoseiSwap will launch a governance token called POSE, which has many uses in its ecosystem.
Tokenomics & The use cases of the POSE token:
Staking
POSE token holders can stake their tokens for 30 minutes to 4 years and receive a derivative token called sPOSE (staking POSE) for voting and governance purposes.
Voting
Staked POSE can be used for voting on DAO proposals within the PoseiSwap ecosystem.
Liquidity Mining
Liquidity pools are the backbone of DeFi and DEX. PoseiSwap will initially set up three mining pools:
- LP (Liquidity Providing) pool: provides liquidity to PoseiSwap, deposit LP tokens to mine POSE.
- POSE pool: deposit sPOSE tokens to mine POSE.
- Fee-sharing pool: deposit sPOSE tokens to receive 1/6 of the transaction fee.
A special pool called “Joint Mining Pool” will also be launched:
Joint mining pool: provides TOKEN-sPOSE liquidity for PoseiSwap’s special tokens TOKEN (partners, ecosystem, or IDO), deposit LP tokens to mine both TOKEN and POSE.
Referral Program
The Posei ecosystem rewards loyal referrers to encourage them to invite friends to use PoseiSwap.
Token allocation
Team (20%): linear unlocking over 7–30 months.
Investors (3%): 2.5% linear unlocking over 7–30 months, 0.5% distributed through token generation activities.
Zepoch node airdrop (7%): distributed to Zebec Node NFT holders.
Public Sale (5%): divided into three stages.
Liquidity Mining (40%): reserved for the highest percentage of liquidity mining incentives.
Ecosystem (20%): to be determined.
The tokenomics of PoseiSwap has significant advantages, and the POSE token has a diversified range of use cases within the PoseiSwap ecosystem. Users can utilize the POSE token for staking, voting, liquidity mining, and participating in the referral program. These rich use cases help maintain the value and activity of the token, thereby driving the development of the entire ecosystem.
By designing reasonable incentive mechanisms, PoseiSwap encourages user participation in ecosystem building. For example, liquidity mining rewards can attract more users to inject liquidity into the market, thereby promoting the platform’s trading activity. In addition, the referral program will also incentivize users to actively promote PoseiSwap, expanding its influence.
From a fair token distribution perspective, the POSE token’s distribution strategy fully considers the interests of all parties, including the project team, investors, and validators. This fair and transparent distribution method is beneficial for maintaining the stability and sustainable development of the ecosystem. Moreover, the POSE token acts as a governance tool within the PoseiSwap ecosystem, allowing token holders to participate in the decision-making process. This decentralized governance model helps enhance the transparency and fairness of the ecosystem, thereby increasing user trust in the project.
As the first Layer3 DEX on the Nautilus Chain, PoseiSwap has enormous development potential, and Zepoch nodes are also becoming the biggest beneficiaries of the PoseiSwap ecosystem’s development dividends. Currently, the sale of Zepoch nodes has exceeded 2800.
As the Nautilus Chain, with Layer3 as its main technical feature, is increasingly widely used in the cryptocurrency field, the value and influence of PoseiSwap’s ecosystem development are expected to continue to expand, further benefiting the Nautilus Chain ecosystem.
