The Constellation Network has launched its first native decentralized exchange, PacaSwap, starting a new phase for its ecosystem. PacaSwap runs directly on the network’s unique architecture and brings DeFi to the Hypergraph Transfer Protocol (HGTP). The DEX enables real-time swaps between DAG and Metagraph tokens, and Metagraph to Metagraph swaps. The newly introduced SWAP token powers both governance and liquidity incentives. Unlike other DEXs that focus on meme tokens, PacaSwap prioritizes practical utility, ecosystem alignment, and data integrity. This design supports scalable token economies tied to enterprise use cases and community governance.
Constellation Network’s Technical Foundation
Constellation Network uses a Directed Acyclic Graph (DAG) to scale horizontally as more participants join. Developers and enterprises use “metagraphs” to launch Layer-1 blockchains with specific token logic and validation rules. These metagraphs plug into the Hypergraph and share its speed, scalability, and consensus engine. The network supports feeless transactions, high throughput, and flexible consensus powered by distributed validators. Companies like Panasonic, Dor Technologies, and IBM already use Constellation for secure data flows. The U.S. Department of Defense also relies on it for mission-critical use cases. In May 2025, the Tessellation v3 upgrade added permissionless nodes, delegated staking, and DeFi-ready transaction types—features that cleared the way for PacaSwap.
PacaSwap DEX Overview and Capabilities
PacaSwap delivers a decentralized exchange natively integrated into the Layer‑0 Hypergraph infrastructure. Instead of launching as a smart contract on another chain, PacaSwap functions as a standalone metagraph with custom logic. This metagraph structure allows it to scale independently while benefiting from the base network’s feeless, high-speed protocol.
The platform uses an automated market maker (AMM) model to match trades and provide liquidity without order books. It supports atomic token swaps between tokens, allowing users to move value between metagraphs without using bridges or custodians. This structure maximizes speed and composability.
Key Features
- Token Swaps: Trade DAG ↔ metagraph tokens or between metagraphs directly
- Atomic Swaps: Execute cross-metagraph swaps instantly and securely
- AMM Pools: Create liquidity pairs without needing centralized order books
- Validator-Powered: Transactions are secured by PacaSwap-specific validator nodes
- Composable Architecture: Built as a Layer‑1 metagraph with upgradeable logic
Feature Breakdown Table
| Feature | Description | Benefit |
|---|---|---|
| DAG & L0 Support | Supports swaps between DAG and metagraph tokens | Expands liquidity across the ecosystem |
| Atomic Execution | Trustless swaps | Eliminates intermediaries and slippage risk |
| Custom Liquidity Pools | Users can create new token pairs | Enables bootstrap liquidity for new projects |
| Validator Infrastructure | Community-run node layer | Supports decentralization and network resilience |
Tokenomics and Governance with SWAP
PacaSwap introduces the SWAP token as the foundation for governance, liquidity rewards, and validator incentives. The Constellation team announced the SWAP tokenomics structure in June 2025. However, they took the official eligibility snapshot on July 9, 2025. This snapshot captured DAG, LTX, and wrapped DAG balances across supported wallets and exchanges.
SWAP Use Case Summary
| Utility | Description | Stakeholder Impact |
|---|---|---|
| Governance Voting | Propose and vote on protocol parameters | Empowers long-term token holders |
| Staking Boosts | Increase LP yield through SWAP locking | Rewards active contributors |
| Validator Collateral | Required for node participation | Ensures aligned security incentives |
| Liquidity Mining | Earn SWAP via pool contributions | Incentivizes early liquidity provision |
Liquidity and Staking Mechanics
The launch of PacaSwap also activates new liquidity provisioning opportunities across the Constellation ecosystem. Users can contribute DAG, metagraph tokens, and SWAP into liquidity pools to earn proportional rewards. Liquidity providers also benefit from optional SWAP staking, allowing them to increase their claim on rewards and influence future governance. These mechanisms create a robust feedback loop between token usage, DEX participation, and long-term ecosystem stability. Additionally, PacaSwap includes functionality for liquidity bootstrapping, enabling new metagraphs or token projects to pair assets and build early market support. This model encourages real adoption, especially among enterprise or infrastructure-oriented projects that require liquidity without speculative risk.
Interoperability and Enterprise DeFi Use Cases
PacaSwap brings on-chain liquidity to tokens secured by real-world utility. Projects like Dor and Panasonic now have a path to connect tokenized data to decentralized markets. Metagraph tokens, backed by enterprise use cases, can now trade seamlessly within the Constellation ecosystem.
At the same time, Constellation’s bridge to Base allows users to move assets like DAG, USDC and DOR off-network. While PacaSwap operates natively on Hypergraph, the bridge lays the groundwork for broader participation in the DeFi landscape.
Infrastructure, Not Just Trading
PacaSwap’s launch is not just about swapping tokens. It represents the completion of a modular DeFi foundation where governance, liquidity, and validation operate across feeless, scalable architecture. With no gas fees, institutional throughput, and deep enterprise integrations, PacaSwap serves builders, not speculators. Its architecture aligns with Constellation’s broader vision of an open data economy, where metagraphs validate real-world events and route verified value through interoperable token rails. Over time, this structure may appeal to companies exploring tokenization but requiring cost-efficiency, regulatory compatibility, and decentralized assurance. For participants in the ecosystem, the launch also expands utility for DAG and unlocks new roles for community members in liquidity, staking, governance, and validation.
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