Overview

What is Zealous Swap?

Zealous Swap is the first AMM-based decentralized exchange on the Kaspa ecosystem. We've strategically implemented the V2 AMM architecture enhanced with an innovative NFT-based fee system to solve the unique challenges of Kaspa's emerging Defi ecosystem.

Design Philosophy

Our protocol is designed with three core principles:

• Liquidity Depth - To provide a better trading experience

• Accessibility - Low barriers to entry for both traders and liquidity providers

• Sustainability - Built-in mechanisms to ensure long-term protocol viability

NFT-Based Fee Mechanism

In partnership with Nacho, we've integrated the NACHO KAT NFT collection into our fee system. Users who stake their NACHO KAT NFTs and reach 100,000+ Power Points receive a 33% discount on swap fees across all pools — regardless of the underlying pool's fee rate.

For example, in our default setup:

• Standard users: 0.3% swap fee

• Qualified NFT stakers: 0.2% swap fee (33% discount)

This system preserves the mathematical integrity of our liquidity pools while creating strong incentives for early adoption and ecosystem growth.

Modular Fee System

While we use a default swap fee of 0.3%, Zealous Swap is built with a Modular Fee System that allows us to customize fees per pool based on the strategy, asset volatility, or community goals. Some pools may have higher or lower fees depending on their design — but the 33% discount for qualified NACHO KAT NFT stakers always applies, ensuring benefits remain consistent for committed users.

This modularity gives us flexibility to support different use cases, optimize LP incentives, and evolve with the market.

Ecosystem Benefits

• Reliable price oracles for other dApps

• Deep liquidity for token swaps and integrations

• Essential infrastructure for future DeFi applications on Kaspa