> For the complete documentation index, see [llms.txt](https://zealous-swap.gitbook.io/zealous-swap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://zealous-swap.gitbook.io/zealous-swap/protocol/quickstart.md).

# 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