Vessel｜Decentralized Exchange Using ZK Technology

Vessel is a decentralized exchange powered by Zero-Knowledge (ZK) technology. It offers a robust trading experience by combining the efficiency and ease of use of centralized exchanges (CEXs) with the transparency and security of decentralized exchanges (DEXs).

Technical Overview

It consists of three main components similar to the ZK-Rollup protocol: "Sequencer," "Prover," and "Contract." Users typically send requests to the Sequencer, which processes and responds to the requests instantly.

The Sequencer creates a witness when processing user requests and sends it to the Prover. The Prover uses this witness to generate a SNARK proof, proving that the Sequencer is operating correctly. This prevents the issuance of fraudulent funds, unauthorized asset transfers, and order forgery or replay attacks. The off-chain state is updated according to rules encoded with ZK technology.

The generated SNARK proof and the digest of the off-chain state are committed to a smart contract, where verification and finalization take place. All user assets are held in an on-chain contract called the "Vault" and can only be moved in the manner specified by a valid proof.

Fusion of AMA and Order Book: "VAOBOE"

Vessel introduces "VAELOB (AMM-integrated Limit Order Book)." This innovative model not only combines the advantages of both AMM and order book systems but also ensures that the entire process is verifiable.

Example: Suppose Alice places an order to buy 1 ETH at $3810. This order is filled using 0.7 ETH at $3800 and 0.3 ETH at $3801. Vessel's unique feature is that the processing differs slightly depending on where the order originated.

1. Order at $3800 - Alice's order is first matched with orders to sell at $3800. Here, 0.4 ETH comes from the AMM (Automated Market Maker), and 0.3 ETH comes from other users. When the 0.4 ETH from the AMM is sold to Alice, the AMM automatically places a buy order for the same amount (0.4 ETH) at $3799. When the 0.3 ETH from other users is sold, that order disappears from the order book.

2. Order at $3801 - Next, Alice's remaining order is matched with orders to sell at $3801. Here, the AMM offers 0.5 ETH, but Alice buys only 0.3 ETH of it.

3. After this, the AMM automatically places a buy order for 0.3 ETH at $3800. In summary, Alice's order is filled with a combination of orders from other users and the AMM. When an order from the AMM is processed, a new order in the opposite direction is automatically placed. Also, the transaction fees for orders generated by the AMM are distributed to those who have provided funds to the AMM (LPs).

Funding Information

Vessel has raised $10M in funding from Sequoia Capital, Avalanche Foundation, Algorand Foundation, and others.

Roadmap

The current usage of earned points has not been announced, but they may be linked to token distribution in the TGE planned for Q4. Points can be earned through:

1. Adding liquidity to the AMM pool
2. Referral program
3. Placing limit orders using the API

Campaign details are available here

Airdrop Procedure Summary

1. Access the site here
2. Create an account by entering the invitation code
3. Deposit into your wallet
4. Provide liquidity and earn points

1. Access the site here
2. Create an account by entering the invitation code
3. Deposit into your wallet
4. Provide liquidity and earn points