ZealousSwap
ZealousSwap is a V2-style constant-product AMM on the Kaspa ecosystem’s Igra and Kasplex networks. Providers deposit paired inventory, receive transferable LP tokens, and earn swap fees until they burn those tokens for the pool assets then held. The 2026-08-16 survey measured about $0.38M of pool liquidity plus $0.22M in separately reported staking. We reject the market-making inventory under the version-1 AMM-LP dossier; dynamic fees, incentives and first-mover status do not eliminate adverse rebalancing.
- Ships a product line without impermanent-loss exposure that merits its own review
Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-16.
The research file
Mechanism applicability
Each ZealousSwap pool is a trading venue for a token pair. Providers contribute both tokens at the current ratio and receive LP tokens proportional to their contribution; traders change pool balances and 0.25% of the default 0.30% swap fee accrues to LPs. The protocol warns that an off-ratio deposit creates an arbitrage opportunity at the provider’s expense.
Control and exit applicability
Pair contracts are deployed through a factory and the modular fee system permits pool-specific fee rates. The LP controls a transferable receipt that can be burned to withdraw its pro-rata pool share plus fees, but the returned token mix reflects completed swaps. Slippage, reserve manipulation, token quality and bridge or network operation on Igra and Kasplex remain exit dependencies.
Current observation and perimeter
The DefiLlama API read on 2026-08-16 classified ZealousSwap as a DEX and reported approximately $0.38M of pool liquidity: $0.32M on Igra and $0.05M on Kasplex. It separately reported about $0.22M of staking. This application covers the measured DEX pools rather than ZEAL staking, NFT discounts or a future product.
Why the class rule decides
The client claim is a redeemable share of paired assets sold against traders, so relative-price movement changes inventory and can underperform holding the assets. That is the exposure controlled by the version-1 AMM-LP dossier. Reopen only for a separately measured ZealousSwap product whose return does not depend on AMM inventory or paired-asset rebalancing.
Class rule
The amm lp class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.
Sources
The claims above trace to these. Where a number could not be independently verified, the thesis says so.
- ZealousSwap Docs — protocol overview · primary · accessed 2026-08-16
Supports: Kaspa ecosystem AMM, V2 architecture, modular fees, NFT discount - ZealousSwap Docs — pools and LP tokens · primary · accessed 2026-08-16
Supports: paired deposits, LP receipt, fee distribution, burn-to-withdraw - ZealousSwap Docs — liquidity integration · primary · accessed 2026-08-16
Supports: deposit ratio, arbitrage loss, slippage controls, router - ZealousSwap Docs — deterministic pair contracts · primary · accessed 2026-08-16
Supports: factory, pair contracts, CREATE2, pool control perimeter - DefiLlama — ZealousSwap survey record · secondary · accessed 2026-08-16
Supports: current pool TVL, staking TVL, Igra, Kasplex, DEX category
Inherited controls
The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.
| Chain | Verdict | Control | Control constraint |
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