ZKSwap recently announced a major development in the form of the launch of V2. As the noise around the platform’s latest move continues to grow, we’ve decided to reach out to its lead developer and ask them a few questions about it.
NewsBTC (NB): Can you tell us more about the ZKSwap V2?
Alex Lee (AL): ZKSwap is one of the first DEX layer2 based on ZKrollup using the AMM model. This DEX layer2 has all the features like Uniswap, only this happens on Layer2, which means zero gas charges for layer2 transactions and instant confirmation.
ZKSwap has been live on Ethereum since February 2021 and will soon be implemented on Binance Smart Chain, HECO, and OKEX Chain when V2 becomes available by the end of June.
NB: How is it different from other L2 solutions and what does this mean for the ETH ecosystem?
AL: Among the layer2 solutions, the two main ones are ZK-Rollup and Optimistic Rollup.
We chose ZK-Rollup because it offers the same security as the underlying layer1, and it uses proof of validity while the optimistic rollup relies on fraud protection. This is why the removal time for the optimistic based dex from layer 2 to layer 1 is as long as 7 days and ZKSwap only takes 40 minutes.
The finality functionality is very critical for dexes. This is why even Vitalik mentioned in his “An incomplete guide to accumulations” https://vitalik.ca/general/2021/01/05/rollup.html as following:
“In general, my opinion is that in the short run, optimistic rollups are likely to win for general purpose EVM computation and ZK rollups are likely to win for simple payments, swapping and trading. other application specific use cases, but in the medium to long term, ZK rollups will win in all use cases as ZK-SNARK technology improves.
NB: What are the improvements made by V2 compared to its predecessor?
AL: ZKSwap V1 has supported full swap, add / remove liquidity, and layer 2 forwarding functionality. V2 has optimized circuits to make transactions faster and lower cost. Another major update is that V2 will allow an unlimited token list.
NB: What are the fees associated with listing and trading tokens on Zkswap V2?
AL: We do not charge any fees for the unlimited token list service, allowing users to list all ERC-20 tokens or token pairs on ZKSwap for free. In the future, we will also make this service open to all types of tokens in addition to those of the ERC-20.
On ZKSwap, the first 50 transactions on layer2, e.g. swap, transfer, add / remove liquidity, are free, but we charge a 0.3% transaction fee after the first 50 transactions.
NB: Can you tell us more about Zkswap’s adoption rate within the crypto community?
AL: I think we have had very good results so far. It’s been four months after the launch of the ZKSwap mainnet. Our peak TVL hit over $ 1 billion, or roughly 70% of total TVL on Layer 2, and the average TVL is around $ 200 million this week.
In addition, our total Layer 2 transaction volume exceeded $ 11.5 billion and total swap volume over $ 2.2 billion. Over 3,000 visitors in the last 7 days have been active on our mobile application.
Currently, we have approximately 87,000 users and over 42,000 community members on various media platforms around the world. The number continues to grow rapidly, and the community has indeed contributed a lot to what ZKSwap is today. Many users have joined our product testing program, giving valuable suggestions and feedback on the product experience. The same program with even bigger rewards accompanies the launch of V2, and we expect more participants this time.
NB: What kind of impact do you think ZkSwap V2 will have on the current DeFi ecosystem?
AL: Two main issues hampering the adoption and development of DeFi are gas charges and network congestion, which is especially true with Ethereum. As we roll out V2 to Ethereum, BSC, HECO, and OKChain, we are creating a larger DeFi ecosystem that allows users to list and redeem thousands of new tokens easily and at low cost. With ZKSwap V2, we aim to make the current DeFi ecosystem more accessible with improved scalability and usability.
NB: What are the future projects of ZkSwap?
AL: We have a very exciting track record. Shortly after our launch V2 will be ‘Layer 2 for Everyone’, i.e. the implementation of ZKSwap on BSC, HECO and OKEX Chain, and probably around the same time we will activate the Layer 2 NFT exchange on ZKSwap, which means zero gas charges for the NFT transfer transaction.
Additionally, our 1998 NFT art on BSC is in production and will soon be presented to the community. We will also work on the bridge layer 2 and centralized exchanges. Another important step will be to activate General Purpose EVM on ZKSwap by Q4 2021.
In general, our goal is to build a layer 2 infrastructure with a robust ecosystem.
Learn more about ZKSwap on – https://zks.org/