ZKSwap recently announced a major development in the form of a V2 launch. As the hype around the platform’s latest move continues to build, we’ve decided to reach out to its lead developer and ask him some questions.
NewsBTC (NB): Can you tell us more about ZKSwap V2?
Alex Lee (AL): ZKSwap is one of the first few DEXes based on ZKrollup using the AMM model. The layer2 DEX is as fully functional as Uniswap, except that it takes place in Layer2, which means there are no gas fees for layer2 transactions and instant confirmation.
ZKSwap has been running on Ethereum since February 2021 and will soon be implemented on Binance Smart Chain, HECO, and OKEX Chain when V2 goes live by the end of June.
NB: How is it different from other L2 solutions and what does it mean for the ETH ecosystem?
AL: Among the layer2 solutions, the two main ones are ZK-Rollup and Optimistic Rollup.
We choose ZK-Rollup because it provides the same security as Core Layer 1, uses Proof of Validity while Optimistic Rollup relies on fraud protection. This is why optimism-based dex draw time from layer2 to layer1 is 7 days and ZKSwap takes only 40 minutes.
The final feature is very important for dexes. That’s why Vitalik also mentioned in “Incomplete guide to listings” https://vitalik.ca/general/2021/01/05/rollup.html As follows:
“Overall, my view is that in the short term, optimistic clusters are more likely to win a general-purpose EVM and ZK clusters are more likely to win for simple payments, exchange, and other application-specific use cases, but on average, ZK pools will win in the long-run. In all use cases with improved ZK-SNARK technology.”
NB: What improvements distinguish V2 from its predecessor?
AL: ZKSwap V1 supports full swap, add/remove liquidity, and layer 2 transfer functions. V2 has improved circuits to make transactions faster and at lower cost. Another major update is that V2 will enable the unlimited icons list.
NB: What are the fees associated with listing and trading tokens on Zkswap V2?
AL: We do not charge any fees for our unlimited token listing service, allowing users to list any 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 besides ERC-20 tokens.
In ZKSwap, the first 50 transactions on layer2 are free, such as switching, transferring, adding/removing liquidity, but we charge a transaction fee of 0.3% after the first 50 transactions.
NB: Can you tell us more about the adoption rate of Zkswap among the crypto community?
AL: I think we’ve had good results so far. It’s been four months since the ZKSwap mainnet was launched. Our TVL peaked at over $1 billion, about 70% of the total TVL on the second tier, and TVL averaged about $200 million this week.
Besides, the total trading volume on tier 2 exceeded 11.5 billion dollars, and the total trade volume was more than 2.2 billion dollars. Over 3000 visitors in the past 7 days have been active on our mobile application.
At the moment, we have around 87 thousand users and more than 42 thousand community members across different media platforms across the world. The number is still growing rapidly, and the community has already contributed a lot to what ZKSwap is today. Many users joined our product testing program, and provided valuable suggestions and comments about the product experience. The same program with bigger rewards comes with the launch of V2, and we are expecting more participants this time around.
NB: What kind of impact do you expect ZkSwap V2 to have on the current DeFi ecosystem?
AL: Gas fees and network congestion are two major issues hindering the adoption and development of DeFi, and this is especially true with Ethereum. As we deploy V2 across Ethereum, BSC, HECO, and OKChain, we are creating a more extensive DeFi ecosystem that allows users to easily and inexpensively insert and exchange thousands of new tokens. With ZKSwap V2, we aim to make the existing DeFi ecosystem more accessible by improving scalability and ease of use.
NB: What are the future plans for ZkSwap?
AL: We have a very exciting roadmap waiting for us. Soon after our V2 launch, it will be “layer2 for everyone”, aka ZKSwap implementation on BSC, HECO and OKEX Chain, maybe around the same time we will enable layer2 NFT switching on ZKSwap, which means no gas fee for NFT transaction and Transfer.
Also, our 1998 NFT art is being produced on BSC and will be presented to the community soon. We will also bridge the central and layer2 exchanges. Another major milestone is the enabling of general-purpose EVM on ZKSwap by the fourth quarter of 2021.
Overall, our goal is to build a layer 2 infrastructure with a strong ecosystem.
Learn more about ZKSwap on – https://zks.org/