Decentralized Exchange Liquidity Aggregator 1inch Network Adds Support for zkSync

04/20/2023 14:02 • Metaverse Matters • 80 views

According to reports, the decentralized exchange liquidity aggregator 1inch Network has added support for zkSync, a Layer2 solution for expanding Ethereum networks.

1 inch Network deployed to zkSync Era

The decentralized finance (DeFi) space has recently been flourishing, and the need for efficient and cost-effective solutions has become increasingly important. DeFi protocols require high throughput and low transaction fees, which the Ethereum network has been struggling to provide.
In response to this challenge, 1inch Network, the decentralized exchange liquidity aggregator, has added support for zkSync, a Layer2 solution for expanding Ethereum networks. This integration aims to enhance the trading experience of 1inch Network users while still ensuring that they can continue to access the Ethereum network.

What is 1inch Network?

1inch Network is a decentralized exchange (DEX) aggregator that allows users to access the best prices for their trades across various DEXs. It combines liquidity from different decentralized exchanges to get the best possible rates for users. This optimization is achieved through an algorithm that routes the trades to the most favorable decentralized exchanges at any given moment.

What is zkSync?

zkSync is a Layer2 scaling solution that uses zero-knowledge proofs to achieve scalability for Ethereum. Zero-knowledge proofs enable the validation of transactions without having to broadcast them on the Ethereum network, which reduces fees and increases throughput.
zkSync also provides instant confirmations and high transaction throughput, which makes it more efficient and user-friendly than the native Ethereum network. Furthermore, zkSync has very low transaction fees, which makes it an attractive alternative to other Layer2 solutions and even some centralized exchanges.

The Benefits of Integrating zkSync with 1inch Network

With the integration of zkSync, 1inch Network users will benefit from faster trades, lower fees, and a more efficient trading experience overall. The zero-knowledge proofs used by zkSync also provide an added layer of protection for users’ transactions.
The integration of zkSync with 1inch Network is a significant step in achieving the DeFi space’s goal of creating a more accessible and efficient financial system.

How Does This Benefit the DeFi Space?

The integration of zkSync with 1inch Network promotes the development and adoption of Layer2 scaling solutions, which play a crucial role in solving the scaling issues that have plagued the Ethereum network. As more protocols adopt Layer2 solutions, network congestion, high fees, and slow transaction speeds will become less of an issue.
Additionally, the integration of zkSync with 1inch Network promotes decentralization and security, which are two of the core values of the DeFi space.

Conclusion

The integration of zkSync with 1inch Network marks a significant milestone in the DeFi space’s journey towards achieving a more efficient and user-friendly financial system. This integration will help overcome the scalability challenges faced by the Ethereum network and pave the way for more Layer2 solutions to be adopted.
1inch Network’s commitment to providing its users with the best possible trading experience shows how important the adoption of innovative solutions is to the DeFi space.

FAQs

Q1. What is the advantage of using Layer2 scaling solutions like zkSync in the DeFi space?
Layer2 scaling solutions provide faster transaction speeds, lower fees and higher throughput, which are crucial for the growth and adoption of DeFi protocols.
Q2. What makes zkSync more user-friendly than other Layer2 solutions?
zkSync’s use of zero-knowledge proofs enables instant confirmations, low transaction fees, and high transaction throughput, making it one of the most user-friendly Layer2 solutions available.
Q3. Will the zkSync integration have an impact on liquidity on 1inch Network?
The integration of zkSync with 1inch Network will enhance the trading experience of users without affecting the liquidity on the platform.

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