1inch, the decentralized exchange (DEX) aggregator, is launching a version of its platform onto zkSync Era, the recently released Ethereum scaling network from Matter Labs.
ZkSync Era, which launched in March 2023, uses zero-knowledge cryptography to allow people to transact on Ethereum with higher speeds and lower fees. Era exists within a fast-growing category of Ethereum scaling chains, called zkEVMs, which say they will be able to support any app that’s currently based on Ethereum.
By porting its protocol to zkSync Era, 1inch becomes one of the biggest-name crypto apps thus far to launch onto a zkEVM, or zero-knowledge Ethereum Virtual Machine.
ZkSync Era and its main competitor, Polygon zkEVM, are both still in beta mode but have recently been opened to developers.
1inch, which nabbed $175 million in a 2021 series B funding round, is a decentralized finance (DeFi) protocol best known for its exchange aggregator – a tool that allows crypto traders to find the best prices across different DEX platforms. DEXs are blockchain-based trading platforms that use smart contracts, rather than centralized middlemen, to allow people to swap between cryptocurrencies.
Along with its DEX aggregator, 1inch is also launching its limit order protocol onto zkSync Era.
Era is currently the leading zkEVM by total value locked. There is currently $250 million worth of cryptocurrency circulating in Era’s decentralized finance ecosystem according to L2beat, which tracks Ethereum’s layer 2 scaling chains. Polygon zkEVM has just $4 million, and other zkEVM-builders such as ConsenSys and Scroll have yet to launch on Ethereum’s main chain.
Era’s footprint in Ethereum’s wider layer 2 ecosystems continues to pale in comparison to Arbitrum and Optimism – “Optimistic rollup” networks that are less sophisticated than zkEVMs, but launched over a year earlier. They have attracted billions of dollars to their own networks for scaling Etheruem.
Decentralized finance “has been a driving force behind zkSync Era’s explosive growth,” Alex Gluchowski, CEO and co-founder of Matter Labs, said in a statement. “We expect the deployment of 1inch to contribute to even greater adoption and usage of zkSync Era.”
Ethereum’s core developers expect layer 2 scaling networks – Optimistic rollups and zkEVMs alike – to soon become the primary point of entry for most of Ethereum’s users.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.