ZKSwap Overpriced Swap
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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.
This is a global/international case not involving a specific country.
About ZKSwap
"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."
This is a global/international case not involving a specific country.
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
Include:
- Known history of when and how the service was started.
- What problems does the company or service claim to solve?
- What marketing materials were used by the firm or business?
- Audits performed, and excerpts that may have been included.
- Business registration documents shown (fake or legitimate).
- How were people recruited to participate?
- Public warnings and announcements prior to the event.
Don't Include:
- Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
- Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.
The Reality
This sections is included if a case involved deception or information that was unknown at the time. Examples include:
- When the service was actually started (if different than the "official story").
- Who actually ran a service and their own personal history.
- How the service was structured behind the scenes. (For example, there was no "trading bot".)
- Details of what audits reported and how vulnerabilities were missed during auditing.
What Happened
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
| Date | Event | Description |
|---|---|---|
| January 6th, 2021 12:00:00 AM | First Event | This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here. |
Total Amount Lost
The total amount lost is unknown.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Immediate Reactions
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
Ultimate Outcome
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
Total Amount Recovered
It is unknown how much was recovered.
What funds were recovered? What funds were reimbursed for those affected users?
Ongoing Developments
What parts of this case are still remaining to be concluded?
Prevention Policies
There were no user assets lost in this case.
References
SlowMist Hacked - SlowMist Zone (Jun 25)
ZKSwap - ZKSwap - Layer-2 for All (Aug 1)
ZKSwap price, ZKS chart, market cap, and info | CoinGecko (Aug 1)
@ZKSwapOfficial Twitter (Aug 1)
Announcement (Aug 1)