Outline
Warning
Zenswap is currently under active development. Features, functionality, and documentation are subject to change as we refine and improve things. While we strive to maintain consistency, there may be updates or adjustments in the future. We recommend checking back regularly for the latest information and updates. Thank you for your understanding and support!
Overview
Zenswap is a cross-chain swap solution that leverages USDC routing to provide users boundless liquidity as they swap native assets across different blockchains and networks. It is powered by Analog GMP and Circle CCTP, which abstract away the complexity of cross-chain interactions, offering users a seamless and secure way to exchange native assets across different chains.
Features
Capital efficiency: Zenswap addresses the DeFi market’s “liquidity fragmentation” challenge by pairing all other assets within the protocol with USDC, a foundational routing layer. This approach improves capital efficiency, minimizes slippage, and attracts and retains liquidity from competitive market makers. For more details, see “Liquidity Management”.
Boosted Liquidity/Turbo Service: Zenswap’s novel Turbo Service, developed by Analog, enables cross-chain swaps to be settled in near-instant time, significantly enhancing efficiency and UX. Check out “Turbo Service” for more info.
Composability: Zenswap is a fully composable solution, meaning you can append extra logic to the asset transfer logic on the target blockchain. Imagine unstaking on chain A and then transferring the unstaked asset to chain B to use as collateral for a loan. Check out “Integration Quickstart” to get started.
Swapping Basics
Overview
Zenswap's native cross-chain functionality operates on a “fire-and-forget” basis, requiring no further user interaction after initiating a swap. The swapping process starts when users deposit their tokens on the origin blockchain. The protocol uses Analog GMP and Circle CCTP to make cross-chain swaps more secure and efficient.
Whenever funds are deposited on the origin chain, Analog GMP and Circle CCTP witness the deposit event and subsequently relay the information to the destination chain, where the tokens are swapped to the corresponding assets.
Key Concepts
Native Cross-Chain Swap
Refers to exchanging one native token (e.g., ETH on Ethereum) for another token (e.g., BNB on BNB Chain).
Note
Note that the exchanging native tokens reside on different blockchains.
Zenswap leverages USDC as a routing layer to facilitate swaps across supported blockchains. For example, if Alice wants to swap native ETH on the Ethereum for BNB on the BNB Chain, here’s how the Zenswap protocol will enable the swap:
- Swap native ETH on Ethereum for USDC.
- Transfer the swapped USDC to the BNB Chain.
- Swap the USDC for BNB on the BNB Chain.
- Send the BNB to Alice’s wallet on the BNB Chain.
Liquidity Management
The defining idea of Zenswap is boundless liquidity: liquidity that allows users to swap any amount of USDC without experiencing slippages. Unlike other protocols constrained by limited liquidity pools, Zenswap, supported by Circle CCTP, utilizes a common base pair for all pools. This novel approach minimizes liquidity fragmentation and significantly reduces overall slippages.
Transaction Finality
Transaction finality denotes the irreversible point at which a transaction is deemed final on the blockchain. The degree of finality varies across blockchains, with some offering instant finality while others require multiple confirmations.
This disparity in finality can cause delays during cross-chain swaps, particularly for blockchains like Ethereum, often resulting in substantial waiting periods. For Zenswap, the duration of the swap largely depends on the finality time of the origin chain for classic (i.e., non-Turbo) transactions.
Analog GMP and Circle CCTP prioritize security by delaying the minting process on the destination chain until the burning process on the source chain is definitively confirmed, thus mitigating the risk of chain reorgs.
Fees
TBD
Turbo Service
This is Zenswap’s unique speed-enhancing feature, which allows users to execute high-speed cross-chain swaps. It leverages liquidity providers (LPs) that provide short-term loans, enabling the protocol to fulfill transaction requests optimistically as soon as users complete their transactions on the origin chain.
How Swapping Works
A general description of the swap process can be described as follows:
Step 1: Initiation of the swap
You can accomplish this step via three methods:
- Zenswap App.
- Zenswap SDK. See Zenswap SDK for more details
- Zenswap API. See Zenswap API for more details
Step 2: Attestation of the deposit event
Analog GMP and Circle CCTP monitor the deposit event on the source chain’s relevant gateways. Upon witnessing a deposit for a swap, the transaction is registered on the Timechain and Circle’s Attestation Service.
Note that a delay exists between the initial deposit and its subsequent confirmation on these services. For further information, refer to the section on “Transaction Finality.”
Step 3: Processing the swap
Once the swap is witnessed and validated, it is ready to be executed by the Zenswap protocol. For more details, check out “Architectural workflow”.
Supported Blockchains & Assets
Blockchains
| Blockchain | Network(s) |
|---|---|
| Ethereum | Sepolia |
| Astar | Shibuya |
| BNB Smart Chain (BSC) | Binance Testnet |
| Polygon | Polygon Amoy |
Assets
Zenswap uses USDC as the default pairing for all its liquidity pools, leveraging DEXs to perform native swaps on the supported blockchains. Initially, Zenswap will integrate Uniswap for this functionality, meaning the protocol supports the same tokens as Uniswap. View the list of Uniswap supported tokens.
Technology
The Zenswap tech stack can be broken down into two key pieces: Analog GMP and Circle CCTP.
Overview
Analog GMP
Zenswap’s cross-chain framework relies heavily on Analog GMP, a secure and reliable infrastructure that enables seamless messaging between various supported blockchains. For more details, check out Analog GMP docs.
Analog GMP enhances Circle CCTP by automating USDC transfers, eliminating the need for end-user redemptions and gas payments on destination chains. It also provides tools for troubleshooting failed transactions, improving both UX and security.
Circle CCTP
Circle CCTP enables native cross-chain transfers through a burn-and-mint process, where USDC is burned on the originating chain and then minted on the target chain, providing a secure and efficient way to transfer value.
Every source/target chain route follows the same basic workflow:
- A user burns USDC on the source chain.
- Circle Attestation Service observes and attests to the burn event.
- Any user or third party relays the message and attestation to the target blockchain.
- A user receives minted USDC on the target chain.
Architectural Components
The Zenswap protocol comprises various components spread across both on-chain and off-chain systems, as illustrated in the figure below:
See below for a detailed overview of their operation:
Actor (User): Initiates the cross-chain swap request.
Router Contracts: Main contract handling the routing of swaps on source and destination blockchains. They also interface with Circle’s CCTP contract for burning and minting USDC.
Analog Gateway Smart Contracts (GSCs): Facilitates cross-chain operations by receiving and processing swap requests from the Router Contract.
Chronicles Shards: These are off-chain entities that listen for gateway events and validate TSS. They also relay events to the Timechain.
Task Queue–Timechain: Part of the Timechain, responsible for event handling and task management.
Analog Watch (Off-chain): Monitors and verifies deposits and withdrawals.
Circle (CCTP Contract): Manages the burning and minting of USDC tokens during cross-chain swaps.
Global Router–Off-chain: Calculates potential swap routes off-chain for scalability.
Timechain: Maintains a record of transactions and events within the ledger.
Transaction Lifecycle
Step 1: User Request
A user requests a cross-chain swap specifying the source token on the source chain and the target token on the destination chain.
Estimate gas fees required for all transactions in route.
Step 2: Route Calculation
The application calculates all possible routes for the swap using both on-chain and off-chain modules simultaneously.
Alternative Flow: The Router Contract may calculate routes using an on-chain view function.
Step 3: Route Selection
A user selects a route from the calculated options.
A user initiates the swap request via the Router Contract.
Step 4: Source Chain Swap
- Router Contract performs the swap from the source token to USDC on the source chain.
Step 5: USDC Burn Request
- The Router Contract sends a request to the CCTP (Circle) contract to burn the USDC on the source chain.
Step 6: Cross-Chain Operation
Router Contract calls the Analog Gateway Contract to handle the cross-chain transaction.
Chronicles Shards capture the event and relay it to the Task Queue in the Timechain.
Step 7: Destination Chain Processing
Chronicles Shards for the destination chain capture the event from the Timechain.
Event is sent to the Analog Gateway Contract on the destination chain.
Step 8: USDC Mint Request
- The Router Contract requests the CCTP (Circle) to mint the equivalent amount of USDC on the destination chain.
Step 9: Destination Swap
- The Router Contract swaps the minted USDC for the target token on the destination chain using the selected DEX.
Step 10: Token Delivery
- The target token is sent to the user’s destination wallet address.
Tokenomics
Stakeholders
There are three key roles in the Zenswap protocol:
Liquidity providers (LPs), who add USDC to the liquidity pools for the supported assets and may also provide short-term loans that power the Turbo Service. For more details, see Turbo Service. In return, LPs earn fees and rewards.
Swappers, who use the liquidity in the pools to swap assets on an ad-hoc basis. They pay fees in the process.
Market makers (MMs), who contribute to liquidity pools by monitoring and rebalancing them. They incur fees but anticipate profits in return for their services.
Token Overview
| Property | Details |
|---|---|
| Ticker | ZSWAP |
| Total supply (at genesis) | 1,000,000,000 |
| Decimals | 18 |
| Base unit | ZEP |
| Conversion | 1 ZEP = 10(-18)ZSWAP |
Token Allocation
At its launch, Zenswap will have a total supply of 1,000,000,000 ZSWAP, allocated across 8 categories, as outlined in the chart below:
| Category | Description | % |
|---|---|---|
| Private Sale | A pool allocated for Zenswap’s early and later stage private round investors. | 20 |
| Protocol Launch | A pool allocated towards bootstrapping USDC liquidity during launch on external chains using token auction. | 14 |
| Community | A pool for community incentives, including airdrops and marketing, to support Zenswap's long-term success. | 30 |
| Team | A pool allocated to core team members of Zenswap, including advisors and developers. | 20 |
| Ecosystem Fund | A pool allocated towards DEXs and relayers integration. Also, it will incentivize dApps to integrate with Zenswap. | 5 |
| Treasury | A pool allocated to cater for the future protocol development and bounties. It also will act as an emergency fund for users. | 5 |
| Existing Investors | A pool allocated for existing investors. | 3 |
| LP Incentives | A pool allocated to cater to initial emissions for liquidity provider incentives. | 3 |
Unlock Schedule
The 1 billion ZSWAP minted at Genesis will be distributed over time as per the unlock schedule shown below:
FAQ
How long does the cross-chain swap take?
- The duration of a cross-chain swap largely depends on the finality time of the origin chain. Analog GMP and Circle CCTP prioritize security by delaying the minting process on the destination chain until the burning process on the source chain is definitively confirmed, thus mitigating the risk of chain reorgs.
Is it possible to cancel a transaction once it is initiated?
- No. You cannot reverse a transaction once it is initiated and confirmed on a blockchain. We recommend carefully reviewing the transaction details before submitting it to avoid errors.
What wallets does Zenswap support?
- Zenswap supports major Substrate and EVM wallets like MetaMask, SubWallet, Fearless Wallet, Talisman and Enkrypt. See Wallet Support for details.
Can I swap my funds between different wallets?
- Yes, Zenswap lets you easily swap assets across various networks and wallets. After connecting your wallet, swaps within the same wallet across different networks (e.g., Ethereum to Polygon) only require network selection. However, for swaps between different wallets on different networks (e.g., Metamask on Ethereum and WalletConnect on Astar), you’ll need to manually enter the destination wallet address.
How does Zenswap ensure there is no slippage for transactions involving huge amounts?
- Zenswap leverages Circle CCTP to ensure boundless liquidity. This eliminates slippage concerns, as fair pricing is guaranteed regardless of transaction size or volume, unlike protocols reliant on limited pools.
Where can I monitor the status of my cross-chain swap?
- To check the status of your cross-chain swap, visit the Zenswap Explorer for real-time updates. You can also check your transaction on the Timechain Explorer by searching for your transaction hash.
What is Timechain Explorer?
- The Timechain Explorer allows you to monitor the progress of your Analog GMP transactions, including Zenswap transfers. To check the status of a specific transaction, input its hash or ID into the Timechain Explorer’s search bar and press Enter.
Do I need to keep my browser open during the entire transfer process?
- No. Your Zenswap transfer will progress even if you close your browser. You can track the swap’s status at any time using the Timechain Explorer or Zenswap Explorer.
What is a Turbo Service?
- Turbo Service is Zenswap’s high-speed feature that enables quick cross-chain swaps. It leverages Liquidity Providers (LPs) to offer short-term loans, ensuring swift transaction completion on the destination chain.
How do I know if my swap is completed?
- You can verify your transfer’s completion in two ways: by checking the Zenswap Explorer or by verifying your account balance on the destination blockchain. To track the progress of your swap, you can either use the Zenswap Explorer or search for the transaction’s hash or ID in the Timechain Explorer.
How can I add my asset to Zenswap?
- For a cross-chain swap to be facilitated, chains and assets must first be supported by Analog GMP. See “Supported Blockchains & Assets” for a list of compatible networks and their underlying assets.