SecondSwap Launches Mainnet on Ethereum to Provide More Efficient Market for Illiquid Assets

SecondSwap uses a liquidity routing algorithm that optimizes trade execution and minimizes price slippage to ensure secure and scalable trading experiences

On Thursday, SecondSwap, a secondary token marketplace, officially launched its mainnet on Ethereum. The platform aims to revolutionize the market for illiquid assets by eliminating intermediaries and facilitating transparent price discovery in the open market.

To ensure optimal trade execution and minimal price slippage, SecondSwap employs an advanced liquidity routing algorithm. This technology optimizes the trading experience for both buyers and sellers, enabling secure and scalable transactions.

“We are introducing a decentralized order book-style exchange to bring transparency to token secondary markets,” said Kanny Lee, founder of SecondSwap, in an email to CoinDesk.

“Our platform provides visibility into buy and sell orders, leveraging price discovery mechanisms such as market depth and liquidity profiling. Through seamless wallet integration, we ensure proof of control for sellers and proof of funds for buyers, enhancing security and trust.”

Secondary markets for locked tokens on CEXs or DEXs allow trading of tokens that are subject to some form of lock-up or vesting before they are fully released or unlocked.

These markets provide a way for holders of locked tokens to gain liquidity, meaning they can convert their holdings into cash or other assets before the tokens are fully unlocked — giving early liquidity to sellers and the chance of gaining assets at a discount for buyers.

To facilitate price discovery and enhance liquidity in the early weeks, SecondSwap has introduced a bid campaign, where traders can set their own prices. Once the buy/sell flow feature is enabled, it will support matching between buyers and sellers.

Traders can link their wallets and access a list of locked tokens that they are interested in buying. By setting their preferred price target, they will be notified when inventory is available at the prevailing prices. This ensures that early adopters can engage with new opportunities as they emerge.

The platform plans to expand to the Solana network in the coming months, a move that Lee says could unlock over $500 million in volume.

“Locked token liquidity represents billions of dollars of untapped value. The impact of unlocking this liquidity cannot be understated. On Solana alone, even activating just 10% of dormant liquidity, could inject over $500 million in actionable volume,” said Lee.

“It's definitely one of the drivers for partnering with Solana at the outset. When coupled with the impact that SecondSwap’s vesting mechanism can offer memecoins - to reduce circulating supply - the Solana partnership will continue to flourish and benefit the wider market.”