crypto

ZKSwap Ethereum Robsten Testnet Version User Guide II

What is ZKSwap?


ZKSwap is the first ZK-Rollup-based layer2 dex using the AMM model, developed by L2 Lab. It is currently live on the Ethereum test net. ZKSwap has recently raised an $1.7 million Angel Round from Bixin CapitalFBG Capital, SNZ HoldingLongling Capital, etc.

ZKSwap transfers ETH and ERC20 tokens from the Ethereum network to layer2, using ZK-Rollup to maintain the consistency between the two layers and solving the bottlenecking issues derived from the Ethereum network, such as low TPS, long latency, congested network, and high gas fees.

On ZKSwap, token swap, adding, and removing liquidity are executed on layer2 with real-time speed and no gas fees. The user experience is as smooth as that of a centralized exchange. If you are interested to learn more about technology under the hood, please read our ZKSwap white paper.

Do I need to register an account for ZKSwap?

Users do not need to register an account for ZKSwap. You can connect ZKSwap to the MetaMask browser extension and start using ZKSwap.

MetaMask browser extension download address: https://metamask.io/download.html

What tokens can I swap using ZKSwap?

Theoretically, you can swap ETH and any ERC20 tokens on ZKSwap. However, we only support test coins available in our faucet at the current testing phase, including ETH, USDT, WBTC, DAI, UNI, etc.

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https://faucet.zkswap.pro/en

What determines the swap price?

Each pair’s swap price is determined by the ratio of the two tokens in the underpinning liquidity pool. Through the automatic market maker algorithm (AMM), smart contracts always follow the constant product formula: x*y=k, where x = token1, y = token2, and k = constant. Each swap will automatically decrease the quantity of one token and increase the quantity of the other token according to the constant product formula. The constant k remains unchanged, and the balance is updated in real-time. Therefore, each transaction adjusts the balance of the tokens in the liquidity pool, thereby changing the price.

How to create a new trading pair?

Currently, ZKSwap does not support users to create trading pairs on their own. ZKSwap will officially update and launch new trading pairs from time to time.

How is the proportion of tokens added/removed from the liquidity pool calculated?

When adding/removing liquidity, token pairs need to be added and removed in proportion to the current reserve ratio. For example, the reserve ratio in the liquidity pool of Token A and Token B is 1:100; the ratio you add or remove must be 1:100.

What is the initial price for a token pair?

The initial price is determined by the first user who provides liquidity into the pool. If the price is unreasonable, other users will take the arbitrage opportunity and eventually bring the price back to the real-time spot price.

Does swap on ZKSwap charge fees?

There is a 0.3% fee for swapping tokens. This fee is split by liquidity providers proportional to their contribution to liquidity reserves.

Why does my swap fail?

A low slippage tolerance rate may cause swap failure. Users can adjust the slippage rate in the upper right corner of the ZKSwap interface.

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Well, that’s all for today’s user guide update. Happy DeFi-ing!

If you have any questions, please feel free to reach us here:

ZKSwap Official Website: https://zkswap.pro/en

ZKSwap APP: https://zkswap.app

ZKSwap Twitter: https://twitter.com/ZKSwapOfficial

ZKSwap Github page: https://github.com/l2labs

ZKSwap Official Telegram group: https://t.me/zkswapofficial

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