Announcing FluiDex: Building the first PLONK layer2 DEX on Ethereum

Dex trading, but serious

We believe in “Not your keys, not your coin”, and therefore want to build a better DEX for crypto trading.

Uniswap offers simple-to-use trading experience. We like the KISS (Keep it simple, stupid) principle behind it. However, we believe that there still lies a more promising market in terms of serious trading. With limit/market/stoploss/FOK/IOC/AON order supports, professional traders, who are likely to manage funds of larger scale, can build their more dazzling portfolios.

Why, why, why…?

Why Ethereum

Why layer 2

Why zkRollup

Both optimistic rollup and zk rollup compress transactions on layer 2 and thus improve TPS. Rollups also manage to avoid data availability issues in Plasma.

Unlike using validity proof in zk rollup, optimistic rollup makes use of fraud proof and requires 1~2 week challenge period. This is unlikely to be acceptable for users when withdrawing funds.

Why PLONK

In 2019, Vitalik Buterin wrote an article explaining PLONK. PLONK is a recent developed proof system supporting universal and updateable set up. To date, PLONK is also the most performant proof system supporting this scheme.

Supporting universal and updateable set up means that, the set up is semi-trustless: it can be considered trustless as long as at least one participant is honest. Being universal means that the set up SRS (structured reference string) can be reused for different circuits: this again further mitigate the risks introduced by multiple set-ups.

And nowadays, with optimizations, PLONK can achieve the same performance as Groth16 in some scenarios. More and more projects are actively looking into using PLONK as their proof system, including AZTEC, zkSync and Dusk.

DiversiFi shares a similar goal to serve serious traders but chooses zkSTARKs instead of zkSNARKs. The “T“ (“transparency“) in STARK means completely trustless set up. However, removing the need for SRS introduces significantly larger proof size.

Roadmap, and more coming…

We keep in our mind that we want to build a professional and secure trading platform, and our future features include:

  • massive migrations to aggregate orders arross DEXs and hence offer better liquidity;
  • delegated orders for quant use; and
  • derivatives…

Stay tuned!

Building the first PLONK layer2 DEX on Ethereum

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