Fees below $0.10. Only possible on Layer 2!
Today we introduce a recent addition to our DApp browser: ZigZag!
ZigZag is a decentralized order-book exchange running on Layer 2. Let’s dive into what this means, and how the exchange works under the hood!
Why ZigZag Exchange? And how does it work?
Opening ZigZag’s interface you will find an orderbook, substantially different to AMM-based exchanges such as Uniswap.
ZigZag’s aim is to create an order-book DEX that re-creates the user experience from centralized exchanges, while remaining inclusive to everyone without requiring user registration, and allowing users to hold their funds in a non-custodial manner.
The main difference to centralized exchanges such as Binance is that ZigZag’s transactions occur transparently on-chain routed through the ZK-Rollup zkSync.
As the first DApp on zkSync, ZigZag created a first-mover’s advantage position in the Zero-Knowledge ecosystem with further intentions of launching on StarkNet.
But why should I use ZigZag Exchange?
Quotes from trades are derived from existing centralized exchange price feeds as well, meaning that traders get access to quotes from exchanges such as Binance and FTX, while remaining on-chain.
We have tried ZigZag ourselves. One trade costs around $0.10 in on-chain fees. Compared to Ethereum - where a trade on Uniswap currently costs around $5 - ZigZag feels like cheating.
How does ZigZag Exchange work under the hood?
The reason that ZigZag is able to offer such cheap trades is the scalability potential of Zero-Knowledge proofs. More specifically, ZigZag makes use of zkSync’s built-in atomic swap function. Here, atomic just means that a trade takes place within one single transaction: One token leaves your wallet while another token enters.
Currently ZigZag is working on extending the same functionality to StarkNet, the second big zk-Rollup which will be launched shortly. ZigZag’s contracts are ready for StarkNet to be deployed as soon as the chain goes live. We are very excited to see where the future of decentralized exchanges are heading!
How to use ZigZag Exchange on imToken?
To get started, download the latest imToken from Google Play, Apple App Store, or directly at token.im.
Search for ‘ZigZag’ in the ‘Browser’ and start trading 👇
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Risk Warning: The content of this article does not constitute any form of investment advice or recommendation. imToken does not make any guarantees and promises for the third-party services and products mentioned in this article, nor assume any responsibility. Digital asset investment has risks. You should carefully evaluate these investment risks and consult with relevant professionals to make your own decisions.