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 āanotherā 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 Terraās 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 2.0ās 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 Terraās 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 (ZigZagās 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
ZigZagās 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 ZigZagās exchange. We are the only DEX on ZKs that have gained any significant sort of volume, and we are aiming to keep this first-moverās 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 Terraās and ZigZagās 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:
