CoinClear

WagyuSwap

1.2/10

Velas chain's DEX — dead protocol on a dead chain. Zero activity, zero reason to interact.

Updated: February 16, 2026AI Model: claude-4-opusVersion 1

Overview

WagyuSwap was the primary decentralized exchange on Velas, an EVM-compatible blockchain that positioned itself as a high-performance Solana fork with EVM support. Launched in 2021 during the alt-L1 boom, WagyuSwap offered standard AMM functionality (Uniswap V2 fork), yield farming, and token launchpad services. The protocol was the central DeFi hub for the small Velas ecosystem.

Velas, founded by Alex Alexandrov (also associated with CoinPayments), has effectively ceased meaningful operation. The chain lost its developers, its ecosystem projects migrated or died, and network activity dropped to near zero. With the underlying chain dead, WagyuSwap has no users, no liquidity, and no purpose. This report documents the project honestly as a dead protocol.

Smart Contracts

Architecture

WagyuSwap was a standard Uniswap V2 fork deployed on Velas's EVM-compatible chain. The protocol offered constant product AMM pools, yield farming with WAG token rewards, and a basic launchpad. Nothing in the smart contract architecture was novel — the protocol served as a necessary DeFi primitive for Velas rather than an innovative DEX design.

Current State

Smart contracts remain deployed on Velas but are unmaintained. No development activity has occurred in over a year. The contracts are effectively abandoned code on an abandoned chain. Interacting with these contracts carries risk from both unmaintained code and the unstable underlying chain.

Security

Assessment

Security is irrelevant for a dead protocol with zero TVL. During active operation, WagyuSwap was a standard Uniswap V2 fork with the associated security profile — the core AMM code was battle-tested, but any custom modifications (farming, launchpad) had limited auditing. No major exploits were reported, though the small TVL meant low incentive for attackers.

Current Risk

Any assets still on the Velas chain or in WagyuSwap contracts may be at risk. The chain's validator set has degraded, potentially compromising transaction finality. Users should not deposit any funds into WagyuSwap or the Velas chain.

Liquidity

Current State

Liquidity is effectively zero. All meaningful LP positions have been withdrawn. Pool reserves, if any remain, are dust amounts of worthless Velas-native tokens. There is no liquidity to trade against.

Historical Context

At peak, WagyuSwap held tens of millions in TVL, primarily in VLX (Velas native token) pairs and stablecoin pools. This liquidity evaporated as Velas declined, with LPs withdrawing to avoid being the last liquidity out of a dying ecosystem.

Adoption

Current Usage

Zero. No active users, no trading volume, no farming activity. The website may still load but serves no functional purpose. The protocol does not appear on any DeFi aggregator or tracker with meaningful data.

Historical Context

WagyuSwap had a small but active user base during Velas's brief period of ecosystem growth in 2021-2022. Peak daily users were in the low thousands, with volume in the low millions. This activity was primarily incentive-driven through WAG token farming rewards.

Tokenomics

Token Overview

WAG was the governance and farming reward token. The token has lost effectively all of its value. Trading volume is zero or near-zero on any exchange. The token emissions that drove farming participation now represent worthless inflation of a dead protocol's governance token. Do not purchase WAG tokens.

Risk Factors

  • Dead protocol: No development, no users, no liquidity, no future
  • Dead chain: Velas has ceased meaningful operation; the underlying infrastructure is unreliable
  • Asset risk: Any funds on Velas or in WagyuSwap may be unrecoverable
  • Token worthless: WAG has no value and no path to value
  • No team: The development team has moved on

Conclusion

WagyuSwap's story is simple and complete: it was a standard DEX on an alt-L1 that died. The protocol did nothing wrong technically — it was a functional Uniswap V2 fork that served its ecosystem. But when the ecosystem died, the protocol died with it. This is the inherent risk of building on small, unproven chains: if the chain fails, everything on it fails regardless of the protocol's own quality.

WagyuSwap serves as a reminder that protocol risk is inseparable from chain risk, especially for DEXs that are entirely dependent on their host chain's health. There is nothing to invest in here. This report exists for completeness and as documentation of a dead project.

Sources