3 - 4 minute read
1inch, the popular decentralized exchange (DEX) aggregator, has announced it is launching its platform on the zkSync Era Ethereum scaling network developed by Matter Labs. ZkSync Era uses zero-knowledge cryptography to enable faster and more affordable transactions on the Ethereum network. 1inch becomes one of the major crypto applications to go live on a zkEVM (zero-knowledge EVM) by porting its protocol to zkSync Era. It is also launching its limit order protocol on the platform.
1inch gained $175m in a 2021 funding round and is best known for its DEX aggregator, which is a tool that allows cryptocurrency traders to find the best prices across different DEX platforms. DEXs use smart contracts to allow users to swap different cryptocurrencies without having centralized middlemen.
Currently, Era is the leading zero-knowledge scaling network through its total value locked, with $250m worth of digital assets circulating through its DeFi ecosystem. Polygon zkEVM only has $4m. Other builders such as ConsenSys and Scroll are yet to launch on Ethereum’s main chain.
The announcement is welcomed by Matter Labs’ co-founder and CEO, Alex Gluchowski, saying that DeFi has been the driving force behind Era’s explosive growth. The firm predicts that 1inch’s deployment on the platform will lead to even higher growth in the adoption and use of zkSync Era.
The Ethereum developers foresee that the layer 2 networks like optimistic rollups and zkEVMs will soon become the primary entry point for most of Ethereum’s users.
The implications of 1inch’s move to launch on zkSync Era are significant for traders as it could result in an increase in trading volumes and better user experience. With faster and cheaper transactions, zkSync Era can support various types of apps, saving costs for users and encouraging wider acceptance of the platform. Traders and investors should consider the new benefits of this platform to make more informed trading decisions.
The Bottom Line:
1inch, the DEX aggregator, has announced its launch onto the Ethereum scaling network, zkSync Era. The platform uses zero-knowledge cryptography to enable affordable and faster transactions on the Ethereum network. This move could lead to increased trading volume and enhanced user experience, as traders should expect zkSync Era to save costs and support diverse apps. The move highlights the growing importance of zkEVMs as the entry point for most of Ethereum’s users. Traders and investors alike should consider 1inch’s deployment of its protocol to zkSync Era as an opportunity for better returns, especially as more and more DeFi protocols commence using zkSync Era in the future.