Expert opinion

Liquidity Alliance Program Q&A with Vince Yang, Co-Founder, zkLink

zkLink is an innovative multi-chain layer 2 scaling solution that provides a more efficient and secure environment for DeFi operations. It is at the forefront of addressing the pressing issues of scalability and transaction costs in blockchain networks

We were thrilled to interview Vince Yang, the Co-Founder of zkLink, who shared his insights on the now-active Liquidity Alliance Program, discussing the challenges and opportunities it presents and answering all the biggest points about zkLink.

  1. Can you provide an overview of the recently launched Liquidity Alliance Program at zkLink? What was the motivation behind this initiative?

The zkLink Liquidity Alliance Program is designed to encourage market makers to provide liquidity and promote trading activities to the zkLink ecosystem, enhancing the trading experience and attracting more users to the network. Market makers can participate in the Liquidity Alliance Program by providing liquidity to eligible ecosystem dApps. We will pair market makers with specific ecosystem dApps for more tailored liquidity solutions upon request.

  1. How does the Liquidity Alliance Program enhance the trading experience on zkLink? What unique benefits does it offer to traders?

It gives traders extra incentives to trade on our ecosystem dApps as they’ll be able to earn additional rewards from the infrastructure by participating in our ecosystem.

  1. Could you elaborate on the mechanics of the Liquidity Alliance Program? How does it work, and what are the key components?

There will be a percentage of tokens allocated towards dedicated market makers and traders on-chain. Individuals or institutions that engage in trading on the zkLink platform, through its various ecosystem dApps, will be eligible to earn rewards based on their trading volume.

  1. What kind of response have you seen so far from users and partners since the launch of the Liquidity Alliance Program?

Nothing so far from the users as this hasn’t been launched yet. However, we’ve started co-marketing with partners and it’s increased exposure for both zkLink and the partners of the alliance. The community has responded optimistically towards our program and is excited we have created this initiative ahead of our token launch.

  1. Can you talk about any challenges you've faced while implementing the Liquidity Alliance Program and how you overcame them?

Not too many challenges so far, we just had to find the right partners that were totally aligned with our vision and our ecosystem dApps. Crafting a proper relationship is super important for the long-term success of this program.

  1. Moving forward, what other initiatives or improvements can we expect from zkLink in relation to enhancing liquidity and user experience?

We are consistently refining and exploring creative approaches to enhance the trading and user experience on zkLink. The team has multiple product features in the pipeline to push over the next quarter that will make trading on our ecosystem dApps very similar to the experience of trading on a centralized exchange.

  1. What long-term impact do you foresee the Liquidity Alliance Program having on the broader blockchain and cryptocurrency ecosystem?

We think that this initiative will be more widely adopted once users and other MM firms see the flywheel effect of such a program. We’re proud to be on the forefront of this within the ZK landscape and hope that developers will recognize the benefits of building with us

  1. As the CEO of zkLink, could you share your vision for the future of zkLink and how the Liquidity Alliance Program fits into this vision?

The vision of zkLink is to envision a seamless multi-chain world that allows developers and users to operate in a trading environment that is secure, efficient and easy to use for developers and users. The Liquidity alliance program will aid by adding more liquidity into chains that can be accessed by both developers and users for a truly decentralized trading experience with CEX features.

  1. As both zkLink and zkSync are built on Ethereum, can you elaborate on the specific technology behind your platform? Does it correlate with what we know about zkSync? 

What is zkLink and why it is a unique zkRollup solutions?

zkLink is a multi-chain trading focused zk Rollup solutions provider (infrastructure) focusing on trading whereas zkSync is a zk Rollup Layer 2. Our platform allows trading dApps to customize for high-throughput, low-cost trading-centric ZKP solutions that power typical CEX functions of spot, perpetual, NFT trading and more—enhancing the overall trading efficiency and experience.

Currently we have two trading-focused products for our customers: zkLink Nexus and zkLink Origin.

- zkLink Nexus: A cross-rollup settlement Layer 3 that bundles transactions from other Layer 2 Ethereum zkRollups (e.g. zkSync, Linea, Starknet, etc.). The Layer 3 maximizes for security by settling transactions on Ethereum to acquire the same security level of Ethereum

- zkLink Origin: Origin is a Layer 2.5 that maximizes for connectivity and settles transactions for Ethereum Optimistic Rollups, ZK-Rollups, and other Layer 1 chains such as BNB Chain, Avalanche, Solana, etc—However the caveat is that Origin only supports chains that can support the verification of zk-SNARKs proofs and cross-chain message communication.

  1. How does zkLink's integration of zero knowledge proofs differ from that of zkSync? Are there any specific improvements or advancements that you're particularly proud of?

Both zkLink & zkSync use zk-SNARKs (Plonk) as the validity proof system. zk-SNARKs are the industries’ cutting edge cryptographic proof system. zkLink enhances the performance of ZKP generation by leveraging GPU capabilities and extending lower-level library functionalities. Furthermore, zkLink introduces the composability of multiple zkRollups (zkSync, Scroll, Starknet, etc.) by leveraging the technology of recursive ZKP. These essential improvements empower zkLink to proudly provide our customers with new possibilities:

  • Aggregated Liquidity: Aggregating liquidity across Layer 1 blockchains and Layer 2 rollups, including multi-chain token listing, trading, and management. This extends to token merges issued on different blockchains by the same entity and the unification of Stablecoin Liquidity (e.g., USDC, USDP, etc.) and allows users to access and interact with assets on multiple chains from a single wallet.

  • Composability: Achieving seamless interoperability among multiple zkRollups and unlocks greater innovation potential and widens the spectrum of trading scenarios.

  • High Performance: With a throughput exceeding 1000 transactions per second (TPS), zkLink bridges the gap between the needs of high-frequency traders and on-chain products.

  • High Efficiency: Our application-specific circuits significantly outperform general-purpose zk circuits, resulting in lower computational resource requirements and on-chain gas consumption. This efficiency contributes to a seamless and cost-effective trading experience on our platform.

  • High Customizability and Developer friendly: One-stop multi-chain dApp deployment with simplified developing experience. Developers could enjoy the flexibility to choose connected networks, place decentralized applications strategically, and customize specific functions tailored to their requirements.