A Detailed Explanation of PoseiSwap, the First DEX on Nautilus Chain

Author: Blockchain Eight Gods

Recently, the first Layer3 concept new chain, Nautilus Chain, launched its testnet "Triton," attracting attention. It is reported that after a month of the Triton I testing phase, the Nautilus Chain community has surpassed 200,000 members, with the number of registered addresses for the testnet incentive activities exceeding 180,000, and on-chain interactions exceeding 500,000. Additionally, strategic partnerships have been established with over 20 ecosystem partners, including Celestia, MultiChain, Eclipse, and Galxe. The Zebec ecosystem's foundation, Zebec Labs, has also launched an ecological support fund of $20 million.

Currently, Poseiswap is also the first on-chain project of Nautilus Chain to receive investment from Zebec Labs, with a financing amount of $1.5 million. At the same time, Poseiswap has announced its token airdrop plan, making it the first planned airdrop DEX on Nautilus Chain, attracting the majority of users on Nautilus Chain.

This article will provide an in-depth introduction to Poseiswap to help more readers understand and recognize Poseiswap.

Why did PoseiSwap choose Nautilus Chain?

1. Technical Features of Nautilus Chain

Nautilus Chain is currently the first Layer3 chain in the crypto industry, launched and incubated by the Zebec ecosystem community. Positioned for flow payments and aimed at reducing the global wealth gap, the Zebec Protocol has conducted in-depth explorations on Solana in its early stages and achieved remarkable results. To better serve the Web3 world and accelerate the integration of Web2 and Web3, the Zebec Protocol is gradually planning to evolve from a protocol to a public chain. The launch of Nautilus Chain is an important step towards this goal, in addition to expanding and migrating to public chains like BNB Chain and Near.

In terms of features, Nautilus Chain is the first parallelized and fastest EVM Rollup L3 scaling solution. As the first modular chain, storage, computation, consensus, and other functions are handled in different modules, which means it can achieve higher scalability and expansion capabilities, further enhancing network throughput, security, and privacy on top of Layer2. According to the data from the "Triton" testnet, during the testing period, Nautilus Chain's TPS data exceeded 2000. Nautilus adopts Celestia's modular underlying layer and uses ZK Rollup technology to enhance privacy when applications within the ecosystem want to achieve more functionality, reduce operational costs, or enhance security and gain more sovereignty. For developers, it allows for a broader selection of suitable solutions from a suite of modules, enabling them to choose to develop DAPP-Chain, DAPP-Rollup, or DAPP-Subnet.

As a modular Layer3, Nautilus Chain differs significantly from the current Layer1 and Layer2. Layer1 is a monolithic chain where consensus, transactions, settlement, and transaction execution are all processed on a single chain. Although Layer1 has high security, it is often inefficient and costly. While Layer2 can help Layer1 scale, it typically targets only a specific Layer1; for example, all current Layer2 solutions revolve around Ethereum.

Nautilus Chain is designed to address these shortcomings, allowing developers to "stack" different chains as layers to create a "stack of chains." These stacks will enable developers to create unique underlying layers that are best suited for their specific projects, based on highly customizable modularization.

Of course, Nautilus differs from other L3s (such as StarkWave) in that it uses Celestia for consensus and data availability, and Eclipse for transaction settlement.

As a parallel processing layer, Nautilus can help build scalability for the execution layer in the EVM environment, and in the future, developers will be able to switch to Nautilus Chain seamlessly and with low barriers.

Nautilus's EVM compatibility is another aspect that distinguishes it from other Layer3s. By using the popular Web3 programming language Solidity, Nautilus provides builders with a high-throughput foundation to create the next generation of financial and payment DApps.

Thus, Nautilus focuses on providing payment infrastructure globally. It achieves this by offering builders a scalable EVM environment that is flexible enough to create any necessary financial dApp, allowing Web3 technology to provide a neutral, decentralized, and permissionless financial track for the world. In the future, Nautilus Chain will transition from the initial Optimistic Rollup to ZK Rollup, which can truly bring customization, better performance, and lower costs to Nautilus Chain. As an ecosystem primarily focused on flow payments, security, transaction efficiency, and cost are the most important considerations.

2. Future Development Potential

With high scalability, excellent transaction efficiency, and features like privacy, Nautilus Chain is expected to deeply serve the Web2 world and support the operation of traditional finance, payments, and other scenarios. In the future, Nautilus Chain will not only focus on Web3 developers but will also attract a large number of Web2 developers and traditional companies. In fact, the Zebec ecosystem is actively advancing in this direction.

We see that the Zebec Foundation has raised a dedicated acquisition fund and hired a team of seasoned Wall Street professionals to seek and execute acquisitions for Zebec. They have already acquired several Web2 companies and attracted two Fortune 500 companies as their latest clients. Based on this, Zebec is expected to attract over 100,000 real users this year, processing over $1 billion in total payroll.

Additionally, the Zebec ecosystem has also partnered with Mastercard to launch the Zebec Card, a Mastercard that is the world's first real-time payroll card converting cryptocurrency to fiat, now used in 27 countries/regions. All of these will lay the foundation for the long-term development of Nautilus Chain, which is expected to become the blockchain infrastructure closest to the Web2 world and capable of serving the mainstream.

3. What can Nautilus Chain bring to PoseiSwap?

So intuitively, Nautilus Chain can provide PoseiSwap with unique underlying support, including efficiency, security, and privacy for transactions, which allows PoseiSwap to gain an advantage in the initial and early operational phases, providing users with a better trading experience. As Nautilus Chain develops, it is expected to bring a large amount of capital and user traffic to PoseiSwap, with the technological advantages providing developmental momentum for Nautilus Chain, deeply empowering PoseiSwap.

Moreover, PoseiSwap itself has grander development goals, which align with the objectives of the Zebec ecosystem in incubating Nautilus Chain, and the two philosophies are highly compatible.

Introducing PoseiSwap, the First DEX on Nautilus Chain

l The Original Intention of PoseiSwap

Compared to traditional finance and its CEXs, decentralized exchanges (DEXs) in DeFi have made significant progress in providing users with more access, freedom, and financial control. However, with the exponential growth in demand for decentralized trading, DeFi has reached a turning point, especially on Layer 1 blockchains like Ethereum, leading to issues that even developers find difficult to resolve:

On one hand, there are high costs; trading on a DEX can incur high transaction fees, slippage, and gas costs, especially when you need to complete a transaction immediately. While DEX transaction fees differ from the blockchain's gas fees, they are related to some extent, as DEX transaction fees are still affected by network congestion and the gas required to execute transactions. Therefore, the blockchain running the DEX can also become very expensive. Additionally, if the Layer 1 blockchain becomes too congested, the gas fees on Layer 2 networks may also increase.

Secondly, there is a lack of privacy. Although transparency and anonymous transactions are one of the advantages of DeFi, they also become a weakness since DeFi primarily relies on public ledgers. Even though your identity remains masked, every time you transact on the blockchain, a permanent record is left on the ledger. In short, your DEX transactions can be easily seen by anyone. This poses a challenge for traders who may not want to publicly disclose their trading volumes and strategies.

Finally, there is non-compliance. In recent years, many countries have implemented or proposed various regulations targeting the cryptocurrency industry, and more regulations are expected to be enacted in the future, especially considering the government's interest in addressing consumer protection issues, stabilizing the market, and preventing crimes such as theft and money laundering.

Based on this, PoseiSwap aims to address the high costs, lack of privacy, and non-compliance issues that plague other DEXs in a fast, private, and compliant manner.

l More Specifically, the Benefits PoseiSwap Gains from Nautilus Chain

Efficient and Low Cost

PoseiSwap operates on the Nautilus chain, achieving a modular integrated chain with an initial TPS exceeding 2,000—much higher than other EVM chains. As Nautilus developers and PoseiSwap leverage Nautilus's modular features to create application-specific integrations, its TPS is expected to increase significantly.

Privacy

PoseiSwap aims to solve privacy issues by allowing users to trade using Nautilus Chain's upcoming zk-tech, enabling traders to transact and profit without taking additional measures. This is a significant advantage for traders seeking more privacy and protection in their transactions.

Compliance

PoseiSwap aims to comply with regulations by having an asset permission pool and modules that meet OFAC standards. PoseiSwap will provide all users with a secure place to trade without worrying about upcoming regulations. As licensing and regulations begin to take effect in the DeFi space, this will be essential.

l Functional Modules of PoseiSwap

PoseiSwap currently operates as a DEX, providing token trading and liquidity provision services, liquidity mining, and staking. However, PoseiSwap's vision is not limited to being a DEX; it also plans to extend the influence of DeFi from Web3 to the real world 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 FT, NFT, and other digital assets. This will help bridge the gap between traditional finance and blockchain, bringing new possibilities to the financial sector.

PoseiSwap has launched a governance token, POSE, which has various uses in its ecosystem.

Token Economics

Uses of the POSE Token

l Staking

POSE token holders can stake their tokens for 30 minutes to 4 years to receive a derivative token called sPOSE (staked POSE) for voting and governance.

l Voting

Staking POSE generates sPOSE, which is used for voting on DAO proposals within the PoseiSwap ecosystem.

l Liquidity Mining

Liquidity pools are the backbone of DeFi and DEX. PoseiSwap will initially set up three mining pools:

l LP (Liquidity Provider) Pool: Provide liquidity to PoseiSwap and deposit LP tokens to mine POSE.

l POSE Pool: Deposit sPOSE tokens to mine POSE.

l Fee Sharing Pool: Deposit sPOSE tokens to earn 1/6 of the transaction fees.

Subsequently, a special pool called "Joint Mining Pool" will be launched:

Joint Mining Pool: Provide TOKEN-sPOSE liquidity for PoseiSwap's feature token (partners, ecosystem, or IDO), depositing LP tokens while mining both TOKEN and POSE.

l Referral Program

The Posei ecosystem rewards loyal referrers, encouraging them to invite friends to use PoseiSwap.

Token Distribution

Team (20%): Linear unlocking over 7-30 months.

Investors (3%): 2.5% for linear unlocking over 7-30 months, 0.5% distributed through token generation activities.

Zepoch Node Airdrop (7%): Allocated to Zebec Node NFT holders.

Public Sale (5%): Conducted in three phases.

Liquidity Mining (40%): Reserved the largest proportion for liquidity mining incentives.

Ecosystem (20%): To be determined.

PoseiSwap's token economic model has considerable advantages, with the POSE token having diverse application scenarios within the PoseiSwap ecosystem. Users can utilize POSE tokens for staking, voting, liquidity mining, and participating in referral programs. These rich application scenarios help maintain the token's value and activity, thereby promoting the overall development of the ecosystem.

PoseiSwap encourages user participation in ecosystem construction through well-designed incentive mechanisms. For example, liquidity mining rewards can attract more users to inject liquidity into the market, thereby enhancing the platform's trading activity. Additionally, the referral program will incentivize users to actively promote PoseiSwap, expanding its influence.

From the perspective of fair token distribution, the distribution strategy of POSE tokens fully considers the interests of all parties, including the project team, investors, and validators. This fair and transparent distribution method is conducive to maintaining the stability and sustainable development of the ecosystem, and the POSE token serves 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 Nautilus Chain, PoseiSwap has enormous development potential, and the Zepoch nodes are becoming the biggest beneficiaries of the PoseiSwap ecosystem's development dividends, with over 2,800 Zepoch nodes sold so far.

As the Nautilus Chain, characterized by Layer3 technology, becomes more widely applied in the crypto field, the value and influence of PoseiSwap's ecosystem development are expected to continue to expand, further benefiting the Nautilus Chain ecosystem.