SecondSwap Integrates with Avalanche to Unlock Transparency and Liquidity in the $100 Billion Locked Token Market
Singapore, Singapore, April 29th, 2025, Chainwire
In a move set to reshape the $100 billion secondary market for locked digital assets, SecondSwap, the first decentralized exchange purpose-built for on-chain trading of locked and vesting tokens, has launched on Avalanche. The partnership introduces a transparent, compliant alternative to the fragmented and often opaque off-market dealings that have historically defined this space. With new native smart contracts enabling projects to issue, price, and trade locked assets directly within the Avalanche ecosystem, SecondSwap aims to simplify tokenomics for teams and strengthen the foundation for DeFi’s next stage of growth.
According to a February 2025 report by Tokenomist it is estimated that more than $100 billion worth of tokens across major blockchain ecosystems are subject to vesting schedules, lockups, or early contributor restrictions. As tokenized finance continues to expand, unlocking liquidity from these assets without destabilizing markets has become a critical challenge for protocols, investors, and institutions alike. Bringing these transactions onto an exchange like SecondSwap enables wider market participation, giving retail investors access to deals previously reserved for “whales” – individuals or entities with large crypto asset holdings.
Following its successful February launch on Ethereum, SecondSwap is expanding to the Avalanche ecosystem, marking a leap in the evolution of tokenized finance. Purpose-built for the trading of locked and vesting tokens, SecondSwap now offers native smart contracts on Avalanche, enabling project teams to manage vesting, secondary trading, and price discovery entirely on-chain without reliance on third-party tools or escrow services. The platform provides a critical solution for issuers, early contributors, and institutional investors navigating complex unlock schedules, promoting the orderly movement of locked tokens from sellers to long-term holders. By embedding these lifecycle tools directly into Avalanche, the initiative aims to strengthen project tokenomics and help mitigate the volatility often triggered by unlocking events.
The partnership underscores Avalanche’s commitment to expanding its DeFi capabilities while providing solutions for tokenized assets that reach all investor segments. “Avalanche is committed to supporting the next wave of innovation, and SecondSwap represents a major step forward in unlocking liquidity for projects and contributors across our ecosystem.” said Justin Kim, Head of Asia at Ava Labs.
With the introduction of SecondSwap’s proprietary smart contracts now available on Avalanche, projects can now access a new layer of financial tools designed to enhance capital efficiency, streamline operations and broaden market reach. The new contracts reduce operational overhead for token launches, allowing teams to lock, vest and transfer assets seamlessly through fully audited on-chain solutions. By eliminating the need for internal custom development and off-chain intermediaries, SecondSwap simplifies token lifecycle management, accelerates time-to-market, and improves security and transparency for projects across the Avalanche ecosystem.
“Today’s secondary market for locked tokens remains largely manual, opaque, and inefficient – dominated by private OTC deals that require negotiated terms, lack on-chain auditability, and often involve delayed or risky settlements,” said Kanny Lee, Founder of SecondSwap. “SecondSwap is transforming this model by bringing locked token trading fully on-chain, with smart contract execution that delivers transparent pricing, verifiable asset transfer, and real-time settlement.”
Lee continued. “Anyone with a wallet can participate in these markets. Our no-financial-commitment bidding system introduces price discovery at scale, empowering protocols to surface market interest without losing control, while giving investors broader, fairer access to discounted assets. It’s a critical step forward in building a healthier and more efficient secondary market for digital assets and moving from locked to liquid.”
Kim added, “Tokenized finance is evolving rapidly, and SecondSwap is leading the way by addressing a critical gap in the market – creating a secure, transparent secondary market for locked and vesting tokens. As the only dApp (decentralized application) on the Avalanche chain dedicated to locked token trading, SecondSwap perfectly aligns with Avalanche’s mission to digitize, democratize and de-risk asset ownership.”
SecondSwap’s expansion into the Avalanche ecosystem follows its $1.2 million seed round backed by GSR and Animoca Ventures and highlights a broader evolution underway in tokenized finance. As the secondary market for locked assets matures, blockchain ecosystems like Avalanche are prioritizing transparency, on-chain accessibility, and responsible infrastructure development. While recent reports have drawn attention to challenges in private, off-market trading practices, initiatives like SecondSwap demonstrate that purpose-built, verifiable solutions are already reshaping how projects and investors engage with locked tokens – bringing greater trust, efficiency, and opportunity to the space. SecondSwap offers investors a new avenue to access yield, provides early backers with an on-chain path to liquidity, and gives project teams a modern framework to approach tokenomics with greater transparency and control.
Tokens can be purchased on the SecondSwap marketplace in varying lot sizes and vesting tenors of three, six, and twelve months. Placing a bid lets you name your discount, choose your lockup, and get notified the moment matching deals go live. Savvy investors who act now to place bids on AVAX and whitelist their wallets will be among the first to access these lots – potentially acquiring tokens at discounts of up to 50% off prevailing spot market levels.
About SecondSwap
SecondSwap is revolutionizing OTC trading by providing a secure, transparent, and decentralized marketplace for locked tokens. The platform promotes a more efficient market for illiquid assets by eliminating intermediaries and establishing transparent and fair token value – backed by its proprietary Smart Vesting Protocol. Learn more at secondswap.io or check out Avalanche Season.
About Avalanche
Avalanche is a high-performance blockchain platform designed for builders who need to scale. Avalanche is anchored by its Avalanche Consensus Mechanism, ensuring near-instant finality for transactions. The platform also features a network of networks framework, enabling the seamless creation of customizable and interoperable Layer 1 blockchains with high throughput on both public and private networks.
Supported by a global community of developers and validators, Avalanche offers a fast, low-cost environment for building the next generation of decentralized applications (dApps). With its unique blend of speed, flexibility, and scalability, Avalanche is the preferred choice for innovators pushing the boundaries of blockchain technology.
