Overview
JediSwap launched as one of the first automated market makers on StarkNet (now commonly written as Starknet), Ethereum's STARK proof-based Layer 2 network. Built using Cairo — Starknet's native programming language — JediSwap pioneered DEX trading on the zk-rollup. The protocol started with a standard constant-product AMM (v1) and has upgraded to concentrated liquidity (v2), following the Uniswap v2-to-v3 progression.
The Star Wars-themed branding sets JediSwap apart aesthetically. More importantly, being among the first DeFi protocols on Starknet gave JediSwap a natural advantage in capturing early liquidity and users. The protocol is community-driven and was built during Starknet's testnet phase, earning credibility as a genuine builder rather than a mercenary deployment. JediSwap's fate is closely tied to Starknet's broader adoption and competitiveness in the L2 landscape.
Smart Contracts
JediSwap's contracts are written in Cairo, Starknet's native language that compiles to STARK-provable execution traces. This is notable because Cairo development requires different skills than Solidity — the JediSwap team's Cairo expertise was a genuine competitive advantage during Starknet's early days. The v2 upgrade implemented concentrated liquidity (tick-based position management) in Cairo, which is a non-trivial engineering achievement. The STARK-based execution means all trades are provably correct — every swap is verified by zero-knowledge proofs before being settled on Ethereum L1. Smart contract quality is strong for the Starknet ecosystem.
Security
JediSwap benefits from Starknet's inherent security properties: all state transitions are verified by STARK proofs and settled on Ethereum L1, providing Ethereum-level security for finalized transactions. The protocol's contracts have been audited. No exploits or fund losses have been reported. The STARK proof system eliminates entire classes of vulnerabilities (like invalid state transitions) that affect optimistic rollups. The primary security risks are Cairo-specific bugs (the language and toolchain are newer and less battle-tested than Solidity/EVM) and oracle dependencies for any future lending or derivative products.
Liquidity
JediSwap's liquidity has grown alongside Starknet's ecosystem development. Major pairs (ETH/USDC, STRK/ETH, popular Starknet tokens) have functional liquidity, though depth is significantly less than equivalent pairs on Ethereum L1 or mature L2s like Arbitrum. The concentrated liquidity v2 upgrade improves capital efficiency, allowing LPs to provide tighter spreads with less capital. Starknet's overall TVL growth directly impacts JediSwap's liquidity. Competition from other Starknet DEXs (10KSwap, mySwap) and aggregators (AVNU, Fibrous) fragments the available liquidity.
Adoption
JediSwap is among the most-used protocols on Starknet, consistently ranking in the top DEXs by volume on the network. The protocol benefited from Starknet's airdrop activity — users farming potential STRK airdrops drove trading volume across Starknet DeFi, including JediSwap. Post-STRK token launch, the question is whether this activity sustains or was primarily airdrop-driven. JediSwap's community presence in the Starknet ecosystem is strong, and the protocol has been featured in most Starknet DeFi guides and onboarding materials.
Tokenomics
JediSwap has explored token plans but the tokenomics remain evolving. The protocol does not currently have a widely-traded governance token with established economics. Revenue comes from trading fees (standard AMM fee tiers). The lack of a token may actually be positive for users (no farming dilution), but it limits the protocol's ability to incentivize liquidity through token emissions. Future token plans, if executed, will be a significant event for the protocol's positioning.
Risk Factors
- Starknet dependency: JediSwap's growth ceiling is Starknet's growth ceiling
- L2 competition: Starknet competes with Arbitrum, Optimism, zkSync, Base for users
- Intra-Starknet competition: Multiple DEXs compete for Starknet's limited liquidity
- Cairo risk: Newer language with smaller auditor ecosystem than Solidity
- Airdrop-driven activity: Some trading volume may be unsustainable post-airdrop
- Token uncertainty: Unclear governance token plans create uncertainty
- Aggregator dominance: DEX aggregators may commoditize individual DEX liquidity
Conclusion
JediSwap is a well-built, first-mover DEX on one of the most technically interesting Layer 2 networks. The Cairo smart contract development, concentrated liquidity implementation, and community-driven development are genuine strengths. Starknet's STARK proof architecture provides strong security guarantees. The key question is whether Starknet itself captures meaningful L2 market share — JediSwap's future depends entirely on this. The 4.2 score reflects solid engineering and positioning on a promising platform, tempered by the uncertainty around Starknet's competitive position and JediSwap's own liquidity depth.