Proposal: Onboard UST to zkSync and StarkNet through ZigZag Exchange

Update: Proposal has successfully passed governance!

15M UST has been added to ZigZag market making wallets and UST pairs are now tradable at: https://trade.zigzag.exchange/

Introduction

ZigZag is a decentralised order book exchange powered by ZK-Rollups. We are launching on StarkNet and zkSync as the first and only order book DEX. Our vision is not to launch a mediocre DEX, instead, we are aiming to bring the usability of centralised exchanges to a DEX that previously was not possible. Having sufficient liquidity/order book depth is a key factor that holds back a lot of DEXs from succeeding, which is what our main aim is to get right.

StarkNet and zkSync are newly established ecosystems which gives an opportunity for UST to demonstrate their dominance in the stable coin sector. If you are unfamiliar with StarkNet or zkSync, I highly recommend you to do some background reading as they are simply not “another” Layer-2 solution; Zero-Knowledge proofs are the end-game scaling solution for Ethereum, allowing transactions to get sent with no gas and infinitely scalable speed. Think dYdX, but for a spot exchange. That is our vision. Our competitors are not AMM-based DEXs such as Uniswap or Sushi, but instead FTX or Binance, as we are creating a decentralised alternative for them.

Governance Proposal

We propose for Terra to bootstrap our liquidity on zkSync 1.0 initially (our alpha) with 15M UST. Since our launch 2 months ago, we have already done over $400m trading volume (keep in mind that most of this only picked up over the last few weeks) and if we have the majority of volume occurring on UST pairs, it would give Terra’s stablecoin the strongest placement in a multi chain narrative, especially on the upcoming ZK chains. We can later return this bootstrapped liquidity after StarkNet and zkSync 2.0’s launch, at which point an automated pool will be created for LPers to allow a number of selected market makers to draw from that pool and create an efficient market that has thick order books.

A maximum period of 3 months is how long ZigZag will hold the UST for liquidity on zkSync 1.0, after which another proposal will be submitted whether the funds should be returned to Terra’s treasury or deposited to our liquidity pool on StarkNet.

The multisig in which the funds will be held with is: terra17q9xumlgpf0pm2un0zx47j07knfr8ekz08gnjj

6 individuals will be responsible for this multisig, namely
Taureau (ZigZag’s founder): https://twitter.com/zigzagdev99
0xMonke (proposer): https://twitter.com/Derivatives_Ape
Julian (ZigZag): https://twitter.com/JULlANUSS
Tony(ZigZag): https://twitter.com/0xTonysprocket
LFGMOON (ZigZag): LFGMOON#2793
Jeremy Ong (from Delphi Digital): https://twitter.com/jeremyongws

ZigZag’s team believes strongly in the increased adoption of UST which will eventually take over as one of the most dominant stablecoins, and a mutually beneficial way of achieving this goal is to onboard it through ZigZag’s exchange. We are the only DEX on ZKs that have gained any significant sort of volume, and we are aiming to keep this first-mover’s advantage going by constantly innovating and moving forward rather than sticking to the outdated stablecoins such as DAI, USDT and USDC.

We hope this proposal aligns with Terra’s and ZigZag’s vision of a multi-chain narrative in which UST has an extremely dominant market share.

Let me know any thoughts you guys have down below, looking forward to reading your comments and answering some questions people might have.

Finally, we invite all LUNAtics to join our community! A lot of the ZigZag community also shares the same ideologies you guys have. Our links are down below:

12 Likes

support

1 Like

zkrollups are going to take off - we know this - i support this move - have you launched on starknet? I couldn’t see that? Very much looking forward to that. I juts did a trade on zigzag via zksync and earlier I did one via argent. I very much appreciated the “binance” “kucoin” “gate” “FTX” vibe via my zksync account - made it easy and very familiar. ALSO enjoyed the easy in-wallet experience with argent - different users for each way and i like this adaptability. It definitely makes me think of you as a major player. So YES bring on the UST engagement.

1 Like

Hey Everyone,

We are reaching out from Delphi Digital. We wanted to write a quick response to say that we think this is a great proposal. It is our belief that for DeFi to reach its true potential it needs decentralized stablecoins and low fee, high TPS scaling solutions. Terra and UST provides users with censorship resistant stablecoins and ZigZag, through zk-rollup technology, gives people a low fee, high TPS experience akin to CEXs.

The UST peg has been stable, even during turbulent markets.

It is our belief that using UST to bootstrap liquidity on ZigZag would be mutually beneficial to both Terra and the dex. This should improve the trading experience by offering users liquidity backed by a decentralized stablecoin, which not only increases the TAM for liquidity on ZigZag but also appeals to users seeking to mitigate regulatory risks around centralized fiat-backed stablecoins. Meanwhile, UST demand increases and is adopted in the growing and promising zk-rollup ecosystem.

ZkSync is a growing ecosystem.

We look forward to the start of this partnership and support this proposal.

3 Likes

Support.

Hey , I believe ZigZag would be the trendiest Layer 2 Rollup in the soon future , dear Terra team don’t lose the chance of contribution to this lovely stable project , it would be more on the future .it has a perfect team with perfect community , it will be awesome if its a chance for ZigZag to have some relations with Terra.
Best regards.

I use Zigzag daily. It’s already a good exchange, and I believe it will get much better with more liquidity, pairs, and the rollout of zkSync 2.0 and Starknet.

The Discord is also managed well and active, so that’s a good sign

我来自中国社区,我们支持zigzag,他是伟大的项目,无论在交易还是跨链方面!

The merging of a decentralized stablecoin like UST with an innovative team like Zigzag is well suited for attracting market share as the true L2 ecosystem begins to roll out. Fully support this proposal!

Support! Terra Luna is an amazing project with a strong team. I hear only great things about TL all over the interwebs!

Support,

UST would be 2nd algo stablecoin after DAI
There is fractional algo stablecoin FRAX too.

Since Zigzag aims for DEX, I as zigzag user who uses Binance and FTX would want algo stablecoins .

Support

Support, there are many and will be more people trading with this pair. Binance even let’s UST in.

Although, I’m not convincing UST as a strong stable coin. But I will give it a go

Strong agree with this proposal here after speaking with the Zig Zag team.

ZigZag is awesome and StarkNet / ZKSync will definitely be a big player in the future. I support the notion of using the UST for 3 months and then conducting another post / vote to gauge sentiment on whether the funds should be returned / moved to ZigZag v2 on StarkNet. Multisig signers are trustworthy as well.

I think 40m is a bit high, let’s start off with 15m and once we see good usage / volume we can scale up as needed / find other ways to grow UST on ZigZag.

Please provide updates in this agora thread in the future @0xMonke after you have added UST liquidity on ZigZag. Ty fam

3 Likes

Support? Absolutely yes!

shouldn’t someone from the terra foundation be on the multisig?

9 Likes

100% agree. this should have been proposed from the start!

too many anon projects that went downhill lately - agree we need TFL to be the one controlling the multisig

2 Likes

There should be more non ZigZag multi-sig signers, otherwise support.

1 Like

I’d also support with TFL on multisig

1 Like