How ZKEX works
ZKEX will feel very much like Binance, but will be decentralized, trust minimized, and non-custodial.
Users can use their Metamask wallet to deposit/withdraw funds to ZKEX. Both spot trading and derivatives trading will be available.
Users will be able to deposit assets from any connected L1 chain or L2 into their ZKEX account and start trading. They can withdraw the assets back anytime, with the re-assurance that every transaction was verified with zero-knowledge proofs.
- Bob has 10 ETH, which he deposits to his L2 Wallet in his ZKEX account. He pays gas fees since he is moving assets from L1 > L2.
- Bob makes a few spot trades, and in the end makes a small profit of 1 ETH by buying and selling SOL and AVAX. He pays transaction fees for the trades.
- He decides to leave 5 ETH in his L2 wallet to trade with later, and withdraw 6 ETH back to his Metamask wallet. He pays gas fees + withdrawal fee since he is moving some assets from L2 > L1.
Note: Users only pay gas fees whenever they deposit or withdraw funds between L1 and L2. There are no fees for keeping your assets in your own L2 wallet, which are always in your custody.
- One-step multi-chain trades— a faster and simplified user experience using the order book model for spot trading and derivatives — similar to DYDX, but multi-chain;
- Deep liquidity— get buy and sell orders filled at competitive spread prices;
- No gas fees while trading on L2*— by moving transactions off-chain to Layer2 all you pay are low transaction fees;
- Guaranteed security— with ‘zero-knowledge’ technology, the danger of malicious behaviour by anyone (not even the ZKEX team) is virtually eliminated;
- Better capital efficiency— aggregate your stablecoins from multiple chains into a universal 'USD' coin for more trading opportunities;
- Non-custodial— you retain control over your assets at all times.
- No uncertainty— with the order book model, prices and trades can be controlled. Risks of slippage and MEV are eliminated.
- Auto trading: Automate your trading with order types such as limit, stop-loss, and partial fills.
- Adaptable: Support for new chains, currencies and trading options can be added as needed within the original framework.
*Note there are still gas fees when depositing or withdrawing funds between L1 and L2.
To summarize, ZKEX is an order book exchange designed for both new and professional DeFi traders, with a seamless user experience, that is ultra-secure, capital efficient, multi-chain, decentralized, with competitive fees and access to massive liquidity from all supported blockchains.
Later, users will be able to collaterize their stablecoins and stablecoin-LP tokens, to borrow a new stablecoin for more trading opportunities on ZKEX. This isx the same mechanism of getting a loan, but using as crypto assets as collateral.