SecondSwap, a decentralized exchange (DEX) focused on unlocking liquidity for locked tokens, has officially launched its mainnet on Ethereum, the platform announced on Thursday.

With its launch, SecondSwap is introducing a new bid campaign that allows users to set their own price for locked tokens, facilitating price discovery and fair value matching. The platform eliminates intermediaries and ensures that trading occurs while respecting vesting schedules, a critical factor for token issuers and long-term investors.

“By introducing a decentralized order book-style exchange, we are bringing transparency to token secondary markets. Our platform provides visibility into buy and sell orders, leveraging price discovery mechanisms such as market depth and liquidity profiling,” said founder Kanny Lee.

Following its Ethereum deployment, SecondSwap has set its sights on Solana as the next network for expansion. The integration aims to leverage Solana’s high-speed, low-cost infrastructure to further enhance liquidity efficiency.

In November 2024, SecondSwap secured $1.2 million in seed funding from investors including GSR and Animoca Ventures, to develop its smart contract infrastructure, expand its blockchain integrations, and refine its liquidity mechanisms.

How SecondSwap Works

SecondSwap operates as a decentralized order book marketplace for locked tokens. Typically, tokens issued in fundraising rounds come with vesting schedules, meaning early investors and team members must wait before selling their holdings. Traditionally, these assets have been traded manually through over-the-counter (OTC) deals, often with opaque pricing and counterparty risks.

SecondSwap’s platform replaces this fragmented system with a fully on-chain, automated trading solution. The marketplace allows buyers to bid on locked tokens at preferred prices, while sellers can set their asking prices based on vesting duration and demand. A discount curve mechanism ensures fair pricing by accounting for different vesting periods of the same token.

The platform’s smart contracts facilitate the physical delivery of tokens as they unlock, ensuring transactions adhere to vesting schedules. Buyers gain access to tokens at potentially lower prices, while sellers can manage risk and unlock liquidity without prematurely exiting their positions. Token issuers also benefit by attracting long-term holders and reducing immediate sell pressure.

SecondSwap’s bid campaign further enhances liquidity by notifying buyers when inventory is available at their preferred prices, fostering efficient matching between counterparties.

With its mainnet now live, SecondSwap is positioned to drive significant adoption among token issuers, investors, and traders looking for a more transparent and efficient way to manage locked tokens.

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