Paradex logoParadex

Paradex is a high-performance crypto-derivatives exchange built on a Starknet Appchain.
Value Locked

$13.59 M

12.11%

Canonically Bridged
$13.59 M
Externally Bridged
$0.00
Natively Minted
$0.00
  • Tokens
  • Daily TPS
    Coming soon
  • 30D tx count
    Coming soon
  • Stage
    Stage 0
  • Type
    ZK Rollup
  • Purpose
    Exchange
  • ...

    Tokens

    Choose token

    Canonically Bridged Tokens (Top 15)

    USD Coin (USDC)
    Milestones

    Paradex starts using blobs

    2024 Mar 26th

    Paradex starts publishing data to blobs.

    Learn more

    Open Beta Mainnet Launch

    2023 Oct 1st

    Paradex launches Open Beta on Mainnet.

    Learn more
    Risk summary
    Risk analysis
    Sequencer failureState validationData availabilityExit windowProposer failure

    State validation

    ZK proofs (ST)

    zkSTARKS are zero knowledge proofs that ensure state correctness.

    Data availability

    On chain (SD)

    All of the data (SD = state diffs) needed for proof construction is published on chain.

    Exit window

    None

    There is no window for users to exit in case of an unwanted regular upgrade since contracts are instantly upgradable.

    Sequencer failure

    No mechanism

    There is no mechanism to have transactions be included if the sequencer is down or censoring.

    Proposer failure

    Cannot withdraw

    Only the whitelisted proposers can publish state roots on L1, so in the event of failure the withdrawals are frozen.

    Rollup stage
    ParadexParadex is a
    Stage 0
    ZK Rollup.
    There is no available node software that can reconstruct the state from L1 data, hence there is no way to verify that this system is a rollup.
    Stage 0
    1 issue needs fixing
    Stage 1
    2 issues need fixing
    Stage 2
    1 issue needs fixing
    Learn more about Rollup stages
    Please keep in mind that these stages do not reflect rollup security, this is an opinionated assessment of rollup maturity based on subjective criteria, created with a goal of incentivizing projects to push toward better decentralization. Each team may have taken different paths to achieve this goal.
    Technology

    Validity proofs ensure state correctness

    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.

    Zero knowledge STARK cryptography is used

    Despite their production use zkSTARKs proof systems are still relatively new, complex and they rely on the proper implementation of the polynomial constraints used to check validity of the Execution Trace.

    • Funds can be lost if the proof system is implemented incorrectly.

    1. STARK Core Engine Deep Dive

    All data required to reconstruct rollup state is published on chain

    State diffs are publish on-chain as blob or calldata on every state update. The state diffs contain information on every contact whose storage was updated, and additional information on contract deployments. From diffs full system state can be recovered. Contracts’ code is not published on L1, but can be trustlessly verified if available elsewhere.

    1. On-Chain Data - Starknet documentation
    Operator

    The system has a centralized operator

    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.

    Users can't force any transaction

    There is no general mechanism to force the sequencer to include the transaction.

    • Users can be censored if the operator refuses to include their transactions.

    1. Censorship resistance of Starknet - Forum Discussion
    Withdrawals

    Regular exit

    The user initiates the withdrawal by submitting a regular transaction on this chain. When the block containing that transaction is proven the funds become available for withdrawal on L1. Finally the user submits an L1 transaction to claim the funds. This transaction does not require a merkle proof. Note that the withdrawal request can be censored by the Sequencer.

    • Funds can be frozen if the operator censors withdrawal transaction.

    1. Withdrawing is based on l2 to l1 messages - Starknet documentation

    Emergency exit

    There is no generic escape hatch mechanism as Starknet cannot be forced by users into a frozen state. Note that a freezing mechanism on L2, to be secure, requires anti-censorship protection.

    Permissions

    The system uses the following set of permissioned addresses:

    Paradex owner (2) 0x2E6f…A74f0x0a64…6B93

    Can upgrade implementation of the system, potentially gaining access to all funds stored in the bridge and potentially allowing fraudulent state to be posted. Currently there is 0s delay before the upgrade.

    Paradex Implementation Governors (2) 0x8Cef…D6700x0a64…6B93

    The governors are responsible for: appointing operators, changing program hash, changing config hash, changing message cancellation delay. There is no delay on governor actions.

    SHARP Verifier Governors (2) 0x3DE5…F5C60x21F9…AEc4

    Can upgrade implementation of SHARP Verifier, potentially with code approving fraudulent state. Currently there is 0s delay before the upgrade.

    SHARPVerifierGovernorMultisig 0x21F9…AEc4

    SHARP Verifier Governor. This is a Gnosis Safe with 2 / 3 threshold.

    Used in:

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    SHARPVerifierGovernorMultisig participants (3) 0x5923…85580xebc8…fD7F0x955B…2Fec

    Those are the participants of the SHARPVerifierGovernorMultisig.

    Operators 0xC70a…4fe2

    Allowed to post state updates. When the operator is down the state cannot be updated.

    USDC Escrow owner 0xa1F2…E77c

    Can upgrade implementation of the USDC Escrow, potentially gaining access to all funds stored in the bridge. Currently there is 0s delay before the upgrade.

    Smart contracts
    A diagram of the smart contract architecture
    A diagram of the smart contract architecture

    The system consists of the following smart contracts on the host chain (Ethereum):

    Paradex contract received verified state roots from the Sequencer, allows users to read L2 -> L1 messages and send L1 -> L2 messages.

    Can be upgraded by: Paradex owner

    Upgrade delay: No delay

    Implementation used in:

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    CallProxy for GpsStatementVerifier.

    Proxy used in:

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    SHARPVerifier 0xd51A…D8dF

    Starkware SHARP verifier used collectively by Starknet, Sorare, ImmutableX, Apex, Myria, rhino.fi and Canvas Connect. It receives STARK proofs from the Prover attesting to the integrity of the Execution Trace of these Programs including correctly computed state root which is part of the Program Output.

    Implementation used in:

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    FriStatementContract 0xDEf8…44fb

    Part of STARK Verifier.

    Implementation used in:

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    MerkleStatementContract 0x634D…804c

    Part of STARK Verifier.

    Implementation used in:

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    CairoBootloaderProgram 0xb4c6…6a40

    Part of STARK Verifier.

    Implementation used in:

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    MemoryPageFactRegistry 0x4086…70fA

    MemoryPageFactRegistry is one of the many contracts used by SHARP verifier. This one is important as it registers all necessary on-chain data.

    Implementation used in:

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    OldMemoryPageFactRegistry 0xFD14…D1b4

    Same as MemoryPageFactRegistry but stores facts proved by the old SHARP Verifier, used as a fallback.

    Implementation used in:

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    Value Locked is calculated based on these smart contracts and tokens:

    Paradex USDC Escrow. The current bridge cap is 20.00 M USDC.

    Can be upgraded by: USDC Escrow owner

    Upgrade delay: 0s

    The current deployment carries some associated risks:

    • Funds can be stolen if a contract receives a malicious code upgrade. There is no delay on code upgrades (CRITICAL).

    Knowledge nuggets