DESCRIPTION OF EVENTS
"ZKSwap, a decentralized exchange (DEX) built on ZK-Rollup technology, has launched its mainnet as a layer-2 protocol on the Ethereum network."
"L2Lab, the team behind the DEX, went live on Sunday, a move that came months after introducing a testnet in November. The firm raised an angel investment round of $1.7 million at the time backed by Bixin, SNZ, FBG and Longling Capital."
"L2Lab said the goal is to use zero-proof knowledge as a scaling solution for the DEX to increase transaction output and lower gas fees that have become a bottleneck for decentralized finance applications on Ethereum."
"ZKSwap is a layer2 DEX based on the ZK-Rollup technology and using the AMM model. ZKSwap provides zero-gas fee swapping and instantaneous confirmation, solving the scaling issues, with peak TVL over $1 billion. Unlike other layer2 solutions, the withdrawal from ZKSwap to layer1 is also very quick, taking approximately 40 minutes."
"Any tra[n]saction on ZKSwap Layer 2 network can be completed quickly without consuming any gas fee, which greatly reduces user usage cost." "Theoretical TPS is up to 10,000+, achieve real-time exchange without waiting. Enjoy smooth trading on the platform." "Users fully own their own assets, and transactions do not require authorization which protect user privacy and account security." "Users can add any token and create trading pairs on their own with a set fee; and we will support 0 gas fee airdrops and offer a seamless trading experience with instant payment feature."
“ZKSwap is now fully functional and very hands-on. We believe AMM-based layer-2 DEXes is well-positioned to be a leader and represents a whole new stage in the development of DEXes,” Alex Lee, head of development of ZKSwap, said in a statement.
"The ZKSwap token ZKS, a decentralized exchange based on ZK Rollup, has problems due to Uniswap adding liquidity. ZKSwap officially stated that the reason for this phenomenon was that someone used scripts to brush transactions, resulting in a higher price for first adding liquidity." "On January 6, 2021, Beijing time, ZKSwap first added liquidity on Uniswap and Gate.io. When adding initial liquidity, the ZKSwap team found that Uniswap had problems adding liquidity due to malicious front running orders through scripts. And the price when liquidity was initially added was higher than average."
"The project party can only sell a part of ZKS to return the price to normal levels. All the USDT obtained from selling ZKS has been injected into the liquidity pool and will not be withdrawn in the next 3 months" "someone used scripts to brush transactions"
"For users who purchased ZKS on Uniswap from 15:00:03 to 15:08:40 (GMT+8) on January 6, 2021, at a price higher than 1 USDT, please send emails to apply for a refund through private key signature. And those users won’t have to return the ZKS tokens bought."
"At the issuance of this announcement, users who have sent emails with valid proof of the purchase during the time frame mentioned above have been refunded. If you purchased ZKS on Uniswap from 15:00:03 to 15:08:40 (GMT+8) on January 6, 2021, at a price higher than 1 USDT, please send an email to apply as soon as possible."
When ZKSwap was initially launched, the price was higher than it should have been due to a lack of liquidity.
For users who overpaid, they can request a refund of the difference.
HOW COULD THIS HAVE BEEN PREVENTED?
There were no user assets lost in this case.
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