ZKSwap is a layer-2 decentralized exchange based on zero-knowledge rollups (ZK-Rollups) that offers real-time token swaps at zero gas fees. ZKS is the name and ticker symbol of ZKSwap's native ERC-20 token.
The protocol eliminates issues like high gas fees and low throughput caused by Ethereum's network congestion that uses ZK-Rollups. The ZK-Rollups technology aggregates hundreds of transactions, processes them off-chain and then posts transaction data on the main chain, thereby eliminating high gas fees and network congestion.
ZKSwap can process over 10,000 transactions per second. In addition to instant, no-cost transactions, ZKSwap offers complete decentralization. ZKSwap users have total control over their assets, and transactions do not require authorization.
ZKSwap works on an Automated Market Maker (AMM) protocol that facilitates trades using user-funded liquidity pools rather than traditional market order books. However, unlike other DEXes, ZKSwap provides an unlimited token listing and personalized fee settings. ZKSwap is also a multi-chain platform currently available on Ethereum and BSC.
ZKS, the native cryptocurrency token of the ZKSwap platform, drives activities on the network. It incentivizes liquidity, gas fees, and zero-knowledge service-proof providers and distributes staking rewards. Additionally, ZKS token holders can participate in governance and pledge their tokens to initiate a listing proposal on the platform.
ZKS price and tokenomics
ZKS has a total supply of one billion tokens. Six hundred million of these will be distributed via community mining incentives, including mining, staking, service provider rewards, and airdrops. Initially, 4% of the total supply was used to provide liquidity on cryptocurrency exchanges.
From the remaining supply, 15% of tokens are distributed to the ZKSwap team, 8% are reserved for developers and ecosystem growth initiatives, and 1% are allocated to the advisors. Additionally, 6.7% of tokens are kept for angel investors, while 5.3% will be issued to potential series A investors. ZKS tokens have a four-year vesting schedule, after which over 90% of tokens will be in circulation.
ZKSwap has a burning mechanism to control inflation where 0.05% of the 0.3% Layer2 Swap transaction fees are used to buy ZKS tokens. These tokens are then destroyed. ZKSwap has burnt a total of 786,000 tokens over five burning events. This token burning mechanism will positively impact ZKS charts in the future as it reduces the number of ZKS tokens in circulation on top of its limited supply.
Most importantly, the market demand for ZKSwap and, subsequently, ZKS's price is driven by ZKSwaps's unique utility of real-time transactions at zero gas fees. Furthermore, with additional features like the NFT support, EVM model, and cross-chain support for HECO and OKC (formerly OKXChain)>, ZKS's price is expected to increase significantly.
About the founders
ZKSwap was developed by L2 Lab Foundation and officially launched in February 2021.
Alex Lee, the lead developer of the project, has vast experience in zero-knowledge proof research and smart contract development. Other members of the ZKSwap team remain anonymous.
In November 2020, ZKSwap raised $1.7 million from Bixin Capital, FBG Capital, SNZ capital, and Longling Capital.
