Fully audited and reportedly backed by a $1.7 million investment, ZKSwap aims to provide a solution to Ethereum’s (ETH) network congestion.
ZKSwap recently announced the Ethereum blockchain network launch of its “fully audited” and “decentralized” exchange protocol, which is based on the ZKSpeed Protocol.
As explained in a release shared with Crowdfund Insider, ZKSpeed protocol is “a practical ZK-Rollup solution” launched by the ZKSwap team. ZKSwap reportedly provides zero gas fees and high transaction throughput by leveraging the Automated Market Maker (AMM) model.
Developed by L2Lab and supported by investments from Bixin Capital, SNZ Capital, FBG Capital, and Longling Capital, ZKSwap aims to provide a solution to Ethereum’s high gas fees and relatively low throughput in order to enhance the DEX user experience and help decentralized finance (DeFi) platforms become more scalable.
With more than $40 billion now locked into DeFi contracts, the Ethereum distributed ledger tech (DLT) network has become quite expensive (for transactions) and congested (due to a dramatic increase in network traffic).
As mentioned in the announcement, Ethereum alone may not be able to support the massive influx of new users and apps, which has led to many users migrating to Layer 2 solutions and Ethereum Founder Vitalik Buterin has now referred to rollups as the “dominant scaling paradigm” for the next few years.
Realizing this demand, ZKSwap developed its Layer 2 solution on ZK-Rollups, which “scales the transaction capacity on Ethereum using zero-proof technology while offering advanced security and data availability.” As a result, ZKSwap “offers 100x the capacity of the leading DEX, Uniswap, and 1/100th of the gas fees of Ethereum Layer 1.”
ZKSwap supports real-time, “free transfer” and swap of ETH and ERC-20 tokens on Layer 1, with 100 transactions per second. ZKSwap offers support for 30 different crypto tokens, with plans to “scale up to 100 based on community voting.”
Alex Lee, Head of Development of ZKSwap, stated:
“We are very proud to present the mainnet release of ZKSwap, which is now fully functional and very hands-on. We believe AMM-based layer-2 DEXes represent a whole new stage in the development of DEXes, and the highly performant DEX of ZKSwap powered by the cutting edge ZK-Rollup technology is well-positioned to be a leader. The solution offered by ZKSwap will be a strong boost to a complete lay-2 DeFi ecosystem.”
ZKSwap uses ZKSpeed to “achieve high TPS and low gas fees by aggregating multiple zero-knowledge proofs, parallel processing of the PLONK algorithm, and categorization of off-chain data.” It also “enables GPU-compatible algorithms for higher efficiency.”
ZKSwap introduced its testnet in November of last year. Before introducing its mainnet, ZKSwap “successfully passed security audits.” ZKSwap will launch various liquidity mining and transaction mining initiatives. (Note: to learn more, please visit zks.org.)
ZKSwap is a “decentralized” exchange protocol that’s based on ZKSpeed, a “practical” ZK-Rollups solution. Implemented by L2Lab, ZKSwap provides a solution to Ethereum network’s congestion by enhancing the DEX user experience and helping DeFi applications scale. The project is “fully audited” by ABDK, Certik, and SlowMist.