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Using or Investing in ZKSwap? DYOR!

xyzashuPosted for Everyone to comment on, 3 years ago2 min read

By implementing all Uniswap features on Ethereum layer2 and incentivizing asset migration from Uniswap, ZKSwap is trying to steal a good degree of spotlight these days. With recent 1:1 airdrop, it has also tried to multiply its market cap.

Zero Gas and fast transactions are in high demand and ZKSwap is offering both of these. But would you care to check what's the trade-off?

According to ZKSwap, it's a ZK-Rollups based layer-2 DEX with AMM model. But it turns out that it's not completely trustless. Your pub data for transactions on layer-2 is NOT submitted on-chain and is actually dependent on the honesty of validators.

Recently, Matter Labs brought this issue to light.


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It's very important that validium rollups shouldn't be confused as zk-rollups.
Last June, Vitalik Buterin also tweeted:

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Despite fully aware of this, ZKSwaps describes itself as ZK-Rollups based layer-2 DEX. However, in this post ZKSwaps clearly admits:

When validator is honest, the users’ assets are secured. And technically speaking, if validator is NOT honest, security could be an issue and there is the tradeoff for lower gas and higher tps.

In this above-mentioned post and also this one, ZKSwap emphasizes on scalability and reducing gas costs but if the trade-off is security of your assets, would you prefer to use it?

Yes, gas cost is a huge concern for me but security of assets and transactions is even more of a concern.

I guess, this is why Optimistic Rollups has attracted renewed interest these days by people like Adam Cochran (in this thread)


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Finally, I'd like to recall Matter Labs' words:

the technology has passed the “don’t be evil” phase — it’s high time for “can’t be evil.” We can get there through self-custody, censorship-resistance, privacy and elimination of single points of failure. These ideas form the foundational values for the systems we’re striving to build.

We should strive to build such a system by encouraging the right projects and ideas. So I'm no more any excited about ZKS. How about you?

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