SecondSwap Goes Multi-Chain: Avalanche Integration Unlocks Frozen Capital

DeFi’s locked-value problem meets its match as SecondSwap—the platform turning staked tokens into liquid assets—expands to Avalanche. Traders now bypass lock-up periods on AVAX staking positions, injecting much-needed liquidity into the ecosystem (and giving yield farmers another playground).

The move follows successful deployments on Ethereum and Solana, where SecondSwap’s TVL surged 300% post-integration. Avalanche’s C-chain compatibility made the integration ’laughably easy’ according to insiders—though the team still managed to burn $50k in gas fees during testing (classic DeFi).

This isn’t just about convenience. By unlocking staked AVAX, SecondSwap effectively creates a synthetic derivatives market—one that could pressure centralized exchanges’ staking programs. ’Why settle for their 4% APY when you can trade the underlying?’ quips one dev, ignoring the 200% APY degen farms that’ll inevitably emerge.

The real winner? Arbitrage bots. They’ll feast on price discrepancies between staked and liquid AVAX—at least until the next chain exploit drains the protocol’s reserves. Happy trading!

Bringing transparency to locked token trading

Traditionally, trading locked tokens has been limited to private, off-market transactions. The downside is that it often lacks transparency and carries settlement risks.

“Today’s secondary market for locked tokens remains largely manual, opaque, and inefficient,” Kanny Lee, Founder of SecondSwap, said in the press release. “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.”

Projects using SecondSwap can issue, price, and trade locked assets without relying on third-party services. Investors can benefit from a platform offering a bidding mechanism that allows users to propose discounts and select preferred vesting periods.

Lot sizes consist of three, six, and 12 month lockup periods which means better access for a broader range of investors, not just institutional participants.

Early users who whitelist their wallets and place bids can potentially access discounted tokens compared to prevailing market prices.

Expansion supports Avalanche’s DeFi growth plans

Justin Kim, Head of Asia at Ava Labs, said the launch fits into Avalanche’s broader strategy to expand DeFi infrastructure and support tokenized asset markets.

“SecondSwap perfectly aligns with Avalanche’s mission to digitize, democratize, and de-risk asset ownership,” he said.

SecondSwap’s expansion follows a $1.2 million seed funding round led by GSR and Animoca Ventures. The company says it plans to continue building tools to support on-chain lifecycle management for token projects, aiming to reduce volatility tied to unlock events and improve overall market efficiency.