Penn Blockchain (FranklinDAO) is creating this proposal in partnership with Matter Labs to Deploy Uniswap V3 on zkSync.
Deploy Uniswap V3 to zkSync
Summary
To support Uniswap’s multichain mission and expand cross-chain experiences, we propose the deployment of Uniswap V3 to zkSync 2.0 on behalf of the community.
zkSync ecosystem has over 100 projects committed to launching on mainnet, including top DeFi protocols, infrastructure, on/off ramps, etc.
Deploying on zkSync will onboard new users & increase user activity on Uniswap by decreasing costs compared to Ethereum without security degradation
zkSync shares Ethereum’s ethos as a free open-source project with a commitment to personal sovereignty, decentralization and community ownership
We welcome feedback from the community on the proposal, including suggestions on how it can be improved.
About zkSync
zkSync 2.0 is a ZK rollup (https://ethereum.org/en/developers/docs/scaling/zk-rollups) that supports generalized EVM compatibility for the Ethereum blockchain. The primary benefit of zkSync 2.0 is that developers who have created EVM dApps can port to zkSync 2.0 effortlessly and realize significantly lower gas fees and more transactions per second without compromising on security.
zkSync 2.0 is a significant leap forward in Layer 2 technologies with long awaited improvements and benefits for Ethereum developers:
EVM Compatible - supporting generalized EVM smart contracts on a ZK rollup making it easy to deploy existing dApps
ToolChain Compatible - able to port smart contracts with existing tools
Ethos Compatible - aligned with the ethos of decentralization and open-source
Certainty - using zero knowledge proofs offering certainty of security not probability
Future Proof - ecosystem partners that adopt zkSync 2.0 now will enjoy all future improvements without the need to change their code
There is broad consensus that ZK rollups are the endgame for scaling Ethereum. zkSync’s EVM compatibility, ease of use, and composability will accelerate developer and retail adoption. Top researchers including Vitalik Buterin recognize ZK rollups as the long term scaling solution.
Security & Bridges
ZK rollups are the most secure scalability solution available today as they rely purely on math to fully inherit the security of Ethereum.
While developers are free to build their own bridge for any token, zkSync 2.0 has two default trustless bridges (one for ETH and one for ERC20 tokens).
The bridges support arbitrary message passing and are secured by validity proof and Ethereum consensus. Fraudulent messages are not possible. The only actions a malicious actor could take is to censor messages, confirm inclusion in a block and then discard the state change.
Security is top of mind for zkSync (https://docs.zksync.io/dev/security/approach/#_1-security-by-correctness). We are currently working with tier-1 auditors for zkSync 2.0 and specifically in the review process for the bridge code. Audits will be conducted before each major upgrade. Besides audits, we offer a substantial bug bounty program (https://docs.zksync.io/dev/security/bug-bounty).
Proposal
There’s significant value in Uniswap being available on an EVM compatible ZK rollup. Deploying early on zkSync helps solidify Uniswap’s place as the number one DEX and a thought leader.
Importantly, it will help grow a large list of projects that can be built on Uniswap V3. Established projects like Argent, Curve, and Yearn have committed to launch along with over 100 more projects and big infrastructure players like Chainlink, The Graph, Gnosis are supporting the ecosystem (https://ecosystem.zksync.io/). Growing the public smart contract libraries interfacing and using Uniswap v3 codebase will solidify Uniswap’s influence in the Ethereum ecosystem which is moving on to ZK rollups.
While the zkSync ecosystem is already experiencing very fast growth, the team is planning programs to attract and fund innovative projects and research partners to accelerate the network’s adoption and in turn, Uniswap’s usage.
License Exemption
Uniswap V3 will be deployed on zkSync by Matter Labs contingent upon approval by the Uniswap community for a license exemption. Governance at deployment will be subject to Ethereum layer 1 Uniswap Protocol governance and control facilitated by the messaging bridge (https://v2-docs.zksync.io/dev/guide/cross-chain-tutorial.html#reading-the-counter-value).
Timeline
Following the Temperature Check, Consensus Check, and Governance Proposal we will be ready to move forward with the Uniswap V3 deployment on zkSync.
zkSync has been on testnet since February 2022 and plans to launch mainnet early October (https://blog.matter-labs.io/100-days-to-mainnet-6f230893bd73). A timely assessment of the deployment of Uniswap v3 code to zkSync is important: while deploying on zkSync is fast and easy because it’s fully EVM compatible, we estimate the full effort will take 4-6 weeks given Uniswap’s relevance. This allows for proper testing, communication to the community and engagement with the broader zkSync ecosystem.
