ZKSwap or ZKS is a token swap protocol over ZK-Rollup technology and a Layer-2 decentralized exchange (DEX). Layer-2 is a secondary protocol built on top of the existing blockchain to enhance transaction speed and eliminate scaling difficulties. The whitepaper describes ZK-Rollup as the off-chain or Layer-2 scalability solution. With ZK-Rollups, ZKSwap seeks to provide a seamless decentralized exchange platform to crypto users. ZKSwap operates over ZKSpace, which is a full-fledged Layer-2 protocol.
Since 2019, the blockchain industry has witnessed the tremendous growth of decentralized finance (DeFi) products. The rise of DeFi has led to the emergence of new decentralized exchange (DEX) protocols. Despite that, existing DEX protocols have many issues, such as high transaction fees and inefficient transaction processing time hindering the trading experience of many crypto users. ZKSwap with ZK-Rollup seeks to solve the problem through a Layer-2 scalability solution. Compared with other Layer-2 scalability solutions, ZK-Rollup aims to provide enhanced security, cost, and usability and facilitates the creation of Layer-2 DEX.
Moreover, ZKSwap seeks to allow the transfer of ERC-20 tokens to Layer-2 without compromising the confidentiality of the data. By doing so, the token aims to enable every exchange to happen on Layer-2 in real-time. Additional benefits ZKSwap aims to have are the following:
ZKS is an ERC20 token of the platform. The governance token of ZKSpace is gZKS. gZKS holders get the right to propose an idea and vote. Users can obtain these tokens by locking ZKS in the protocol. Only holders with 50,000 or more gZKS tokens can submit a proposal in ZKSpace.
