In a significant leap for decentralized finance, SecondSwap—the first decentralized exchange tailored for trading locked and vesting tokens—has launched on the Avalanche blockchain. This strategic move introduces a transparent, on-chain alternative to the opaque and fragmented off-market trading that has long characterized the $100 billion secondary market for locked digital assets.
With proprietary smart contracts now natively deployed on Avalanche, SecondSwap enables projects to issue, price, and trade locked assets entirely on-chain. The platform’s arrival is poised to simplify tokenomics for project teams, offer early contributors more secure liquidity options, and broaden market access to investors previously excluded from private deals.
A February 2025 report by Tokenomist estimates that over $100 billion in tokens across major blockchain networks are subject to vesting schedules and lockups. As tokenized finance expands, the ability to unlock liquidity from these assets without destabilizing token prices has become a crucial challenge. SecondSwap aims to address this by moving these transactions onto a transparent, auditable, and permissionless platform.
“Today’s secondary market for locked tokens remains largely manual, opaque, and inefficient—dominated by private OTC deals with little auditability,” said Kanny Lee, Founder of SecondSwap. “SecondSwap is changing this by executing trades via smart contracts, ensuring transparent pricing, verifiable transfers, and real-time settlement.”
The expansion to Avalanche follows SecondSwap’s successful February launch on Ethereum and introduces powerful on-chain tools to one of the fastest-growing ecosystems in DeFi. Projects can now manage vesting, secondary sales, and price discovery seamlessly without relying on third-party intermediaries or off-chain escrow systems. The integration is expected to reduce operational burdens, streamline token lifecycle management, and improve capital efficiency.
Justin Kim, Head of Asia at Ava Labs, welcomed the partnership, stating, “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.”
SecondSwap’s new smart contracts allow projects to automate complex vesting arrangements while giving investors a regulated and secure avenue to acquire discounted tokens. Through a no-commitment bidding system, participants can specify discounts, select lock-up periods, and receive alerts when matching offers go live. Tokens are available in varying lot sizes and vesting durations—three, six, and twelve months—with early bids on AVAX potentially securing up to 50% discounts off current market prices.
Backed by a $1.2 million seed round led by GSR and Animoca Ventures, SecondSwap’s arrival on Avalanche marks a turning point for the locked token landscape. The platform’s tools offer not only yield opportunities for investors but also a clear, compliant path to liquidity for early backers and project teams.
As tokenized finance continues to mature, SecondSwap is positioning itself as a foundational layer for a healthier, more inclusive digital asset market—turning locked value into liquid opportunity through trust, transparency, and innovation.
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