ZKSwap

ZKSwap is a fork of ZkSync with added AMM functionality. Based on ZK-Rollup technology, ZKSwap aims to execute the full functionality of Uniswap on Layer 2, while ensuring the core value of decentralized exchange.

Basics

• Started in / Announced on:
• Mainnet release: 15-2-2021
• Based in:
• From (sponsored) EthHub (1-12-2020):

"ZKSwap is the first zk-Rollups-based layer2 dex that is using an AMM model. Live on the Ethereum Ropsten testnet since Nov 16th, 2020 and will launch on Ethereum mainnet in 1-2 weeks."

Audits & Exploits

• Bug bounty program can be found [insert here].
• From L2beat regarding ZKSwap V1 and V2 (31-10-2022):

"Funds can be stolen if

1. the cryptography is broken or implemented incorrectly,
2. a contract receives a malicious code upgrade. There is a 8 days delay on code upgrades,
3. the source code of unverified contracts contains malicious code (CRITICAL).

Funds can be lost if

1. the user is unable to generate the non-trivial zk proof for exodus withdraw.

Users can be censored if

1. the operator refuses to include their transactions. They can still exit the system.

MEV can be extracted if

1. the operator exploits their centralized position and frontruns user transactions."

• From (sponsored) EthHub (1-12-2020):

"Code is being audited by CertiK."

Governance

Admin Keys

• From L2beat regarding ZKSwap V1 and V2 (31-10-2022):

"The system has a centralized operator. The operator is the only entity that can propose blocks. A live and trustworthy operator is vital to the health of the system. Force exit allows the users to escape censorship by withdrawing their funds. The system allows users to force the withdrawal of funds by submitting a request directly to the contract on-chain. The request must be served within a defined time period. If this does not happen, the system will halt regular operation and permit trustless withdrawal of funds. If enough time passes and the forced exit is still ignored the user can put the system into Exodus Mode, disallowing further state updates. In that case everybody can withdraw by submitting a zero knowledge proof of their funds with their L1 transaction.

The system uses the following set of permissioned addresses:

1. zkSwap 2.0 Admin 0x9D73…6255 (EOA) This address is the master of Upgrade Gatekeeper contract, which is allowed to perform upgrades for Governance, Verifier, VerifierExit, PairManager and ZkSync contracts.
2. Active validator 0x3810…2ae4 (EOA) This actor is allowed to propose, revert and execute L2 blocks on L1. A list of active validators is kept inside Governance contract and can be updated by zkSwap 2.0 Admin."

Technology

• Whitepaper or docs can be found [insert here].
• Code can be viewed [insert here].
• Fork of ZkSync
• Consensus mechanism:
• Algorithm:
• Virtual Machine:
• Development language used:

Transaction Details

• Capacity (TPS):
• Latency:

How it works

• From L2beat regarding ZKSwap V1 and V2 (31-10-2022):

"Each update to the system state must be accompanied by a ZK Proof that ensures that the new state was derived by correctly applying a series of valid user transactions to the previous state. Once the proof is processed on the Ethereum blockchain the L2 block is instantly finalized. All the data that is used to construct the system state is published on chain in the form of cheap calldata. This ensures that it will always be available when needed."

• From (sponsored) EthHub (1-12-2020):

"It uses zkSNARKs. All swap transactions execute on layer-2 in real-time with zero gas fees."

Roadmap

• Can be found [Insert link here].

Pros and Cons

Cons

• The system has a centralized operator (31-10-2022).

Team, Funding, Partners

Team

• Full team can be found [here].
• Developed by L2lab

Funding

• From (sponsored) EthHub (1-12-2020):

"The team recently closed a $1.7 million Angel Round"