Project overview

Currently the Rollup, as the main form of Ethereum expansion, has become the focus of developers and users. Although Optimistic Rollups is likely to win the common EVM computing in the short term, ZK-Rollups will win in all scenarios eventually because of the technical characteristics of Zkrollup in the long term. Zada Finance believes that the characteristics of its high speed and low gas fee can fully take advantage of the order book; the future of decentralized exchanges will take the order book trading as the main form and aggregate the liquidity of different Rollups. At the same time, we are very interested in the development of technologies such as Layer3, which can further reduce transaction gas fee, and account abstraction, which can enable larger account integration and develop more application scenarios, which will become the basic features of Zada Finance products.

Based on the above, Zada Finance is the first native open-source cross-Rollup DEX on Scroll (https://github.com/zada-fi), and will support Account Abstraction wallets. Zada Finance can achieve the characteristics of composability, low gas congestion and high speed.

Why use Scroll

ZK-Rollups will eventually win, but there are obstacles along the way. In addition to the difficulties of implementing ZKR in production, another major obstacle of the technology is its lack of EVM compatibility, resulting in each ZKR having to be built individually from scratch.

One of the factors in choosing Scroll scheme is that Scroll is Type II ZkEVM and is compatible with EVM decoding level. This equivalence greatly reduces the migration cost of the native Solidity contract. At the same time, Scroll also maintains the maximum degree of decentralization. In its Roadmap, there is a plan for decentralized sequencer and zero-knowledge verification network.

Why needs account abstraction

Account abstraction allows users to use a smart contract wallet that contains arbitrary authentication mode. This will bring rich product use cases, such as asset recovery for users, smarter 2FA security authentication, commission transactions and paying the gas fees with tokens, creating rich user personas and spending strategies for institutional users, as well as authorizing and transacting in batches.

Account abstraction can greatly improve users' DEX experience. The Wallet connected to the traditional DEX requires professional operations such as generating public and private key pairs and keeping mnemonics in mind. In addition, if the private key is improperly kept, assets may be permanently lost. Some operations, such as adding liquidity to an AMM, may require multiple signings and multiple gas charges. Account abstraction can not only provide social methods, such as identity authentication and asset recovery by email, mobile phone number and third-party service providers, but also provide more customized functions, such as multiple signings, commission payment by the project side, product promotion rebates, project dividends, etc. Multiple transactions can also be bound into a single atomic transaction, reducing user interaction, improving efficiency while improving security.

At present, the relatively mature AA wallets include Unipass, Argent, Soul wallet, etc. Soul wallet adopts the ERC4337 standard and has been deployed on Scroll, so we will consider connecting to Soul Wallet and implementing our plan.

Fragmentation of liquidity problems and its solutions

As the L2 ecosystem has developed, many dedicated and generic Rollup products have emerged. There is a liquidity split between different Rollups, which causes inconvenience to users. For example, DYDX(which will develop the main chain by itself in 2023) and Loopring are both zkrollup. Now the two DEX cannot transfer money directly between them, and both need to go back to the main network first, which causes unnecessary Gas and time costs.

Zada adopts Orbiter as a cross-rollup solution. Orbter is the first infrastructure platform to implement arbitrary message exchange between any type of rollup, with high efficiency and low cost. Based on Orbiter, we will not only implement basic cross-rollup asset transactions, but also further implement cross-rollup aggregators.