DeGate is a ZK Rollup enabling a decentralized order book exchange. DeGate smart contracts are forked from Loopring V3.
$53.30 M
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DeGate is a ZK Rollup enabling a decentralized order book exchange. DeGate smart contracts are forked from Loopring V3.
DeGate Mainnet Beta Redeploy
2023 Nov 13th
DeGate redeploys Mainnet Beta due to a bug, with the ability to upgrade the smart contracts.
Users can force the sequencer to include a withdrawal transaction by submitting a request through L1 with a 0.01 ETH fee. If the sequencer is down for more than 15d, users can use the exit hatch to withdraw their funds. The sequencer can censor individual deposits, but in such case after 15d users can get their funds back.
zkSNARKS are zero knowledge proofs that ensure state correctness, but require trusted setup.
Users have 30d to exit funds in case of an unwanted regular upgrade. There is a 45d delay before a regular upgrade is applied, and withdrawals can take up to 15d to be processed.
Users are able to trustlessly exit by submitting a Merkle proof of funds.
Each update to the system state must be accompanied by a ZK proof that ensures that the new state was derived by correctly applying a series of valid user transactions to the previous state. These proofs are then verified on Ethereum by a smart contract.
Despite their production use zkSNARKs are still new and experimental cryptography. Cryptography has made a lot of advancements in the recent years but all cryptographic solutions rely on time to prove their security. In addition zkSNARKs require a trusted setup to operate.
Funds can be stolen if the cryptography is broken or implemented incorrectly.
All the data that is used to construct the system state is published on chain in the form of cheap calldata. This ensures that it will always be available when needed.
No compression is used.
The system does not begin with a genesis state; instead, it initiates from a zero state, as referenced in CreateEmptyState
.
Each update to the system state must be accompanied by a ZK proof that ensures that the new state was derived by correctly applying a series of valid user transactions to the previous state. These proofs are then verified on Ethereum by a smart contract.
DeGate utilizes Groth16 for their proving system. The source code of the circuits can be found here.
Funds can be lost if the proof system is implemented incorrectly.
The operator is the only entity that can propose blocks. A live and trustworthy operator is vital to the health of the system.
MEV can be extracted if the operator exploits their centralized position and frontruns user transactions.
Force exit allows the users to escape censorship by withdrawing their funds. The system allows users to force the withdrawal of funds by submitting a request directly to the contract on-chain. The request must be served within a defined time period. If this does not happen, the system will halt regular operation and permit trustless withdrawal of funds.
Users can be censored if the operator refuses to include their transactions. However, there exists a mechanism to independently exit the system.
If the user experiences censorship from the operator with regular exit they can submit their withdrawal requests directly on L1. The system is then obliged to service this request. Once the force operation is submitted and if the request is serviced, the operation follows the flow of a regular exit.
If the 15d deadline passes and the forced exit is still ignored the user can put the system into Withdrawal Mode, disallowing further state updates. In that case everybody can withdraw by submitting a merkle proof of their funds with their L1 transaction.
This address is the owner of the BlockVerifier contract.
Actor allowed to upgrade the ExchangeV3 and DefaultDepositContract contracts. This address is the owner of the following contracts: LoopringIOExchangeOwner, LoopringV3, DefaultDepositContract. Can add or remove block submitters. Can change the forced withdrawal fee up to 0.25 ETH. Can change a way that balance is calculated per contract during the deposit, allowing the support of non-standard tokens.
Used in:
Main ExchangeV3 contract.
Upgrade delay: 45d
ERC 20 token basic deposit contract. Handles user deposits and withdrawals. This contract can store any token.
Upgrade delay: 45d
Contract for setting exchange fee parameters.
zkSNARK Verifier based on ethsnarks library.
This timelock contract is set as the proxyOwner of the ExchangeV3 contract. There is a 45d time delay for upgrading the contract.
This timelock contract is set as the proxyOwner of the DefaultDepositContract contract. There is a 45d time delay for upgrading the contract.