ZKSwap (Token: ZKS), an AMM model layer-2 decentralized exchange (DEX) powered by Practical ZK-Rollups, the ZKSpeed Protocol, has announced the launch on the Ethereum mainnet on Feb 14th, 2021, allowing global users to transfer and swap ETH and ERC20 assets in real-time and gas-free.
The rapid growth of decentralized finance aggravated the scalability issue of the Ethereum blockchain, sending average Ethereum gas prices to the tune of 25 dollars, according to BitInfoCharts.
Many blockchain researchers look to tackle the scalability issue with varied approaches, either with layer1 focused solutions represented by Ethereum 2.0 or via different flavored layer2 solutions. ZKSwap, developed by an anonymous team L2Lab, believes in the long run, layer2 solutions will likely win out because they allow complex logic to be added without jeopardizing the stability of the underpinning layer1 blockchains.
ZKSwap aims to build the next-generation DEX featuring fast confirmation, low gas-fee, and high throughput. The ZKSpeed Protocol, which ZKSwap is based on, incorporates existing layer-2 solutions’ strengths and addresses their weaknesses with a balanced trade-off. The ZKSpeed Protocol, also known as the Practical ZK-Rollups, implements a deeply optimized version of the latest zero-knowledge proof scheme PLONK, supports aggregation of multiple proofs, optimizes verification circuit, and enables GPU-compatible algorithms for higher efficiency.
As a result, ZKSwap realizes the full set of Uniswap functions on layer-2 with significantly improved network throughput, scalability, and cost-effectiveness, while ensuring the same security as the underpinning layer1 network.
The first version of ZKSwap will support over 100 transactions per second (TPS), effectively outperforming the throughput of Uniswap and other layer2 products by multiple orders of magnitude. It will also effectively reduce the gas fees for various types of transactions.
By providing a highly efficient solution for production-ready implementation, ZKSwap boasts enormous potential.
“We are thrilled to announce the release of ZKSwap on the Ethereum mainnet. ZKSwap is now functional with the full support of layer2 transfer, swap, and adding/removing liquidity. We believe AMM-based layer2 DEXes represent a whole new phase for DeFi. ZKSwap, powered by the cutting edge ZK-Rollup technology, is well-positioned to be a leading player in the industry. The ZKSpeed Protocol, a practical ZK-Rollup solution developed by the ZKSwap team, will be a strong boost to build a large-scale, production-ready, and compostable layer2 DeFi ecosystem,” Alex Lee, Head of Development at ZKSwap commented.
The launch on the Ethereum mainnet comes three months after the debut of the ZKSwap version on the Ethereum Ropsten testnet. Over 60,000 users from 90 countries have participated in the ZKSwap testnet version.
To further motivate adoption and reward early supporters, community mining events including Proof-of-Gas, Proof-of-Staking, Proof-of-Liquidity-Mining, and Proof-of-TransFee will start around the product launch with a total of 5 million ZKS rewards.
For the next phase, ZKSwap will collaborate with exchanges and wallet providers to increase the accessibility of the platform. It will also aim to support all ERC20 tokens, including stablecoins.
For the long-term, the team aspires to provide a layer-2 protocol standard to enable various DeFi applications to build on layer 2.
ZKSwap is an AMM model layer2 DEX based on Practical ZK-Rollups, the ZKSpeed Protocol. Users can now deposit and withdraw between the ZKSwap layer1 and layer2 wallet, swap tokens, transfer tokens, and add/remove liquidity on ZKSwap with real-time transactions and zero gas fees. For more info, please visit zks.org.