Lynex integrates ZK Proofs after partnering with Web3 security firm Salus
Linea-based DEX and on-chain liquidity marketplace Lynex will receive a shot in the arm in the security stakes, after confirming a collaboration with blockchain security company Salus. The partnership will see the DeFi platform integrate Zero-Knowledge (ZK) technology for the first time, in a move set to deliver enhanced transactional security and privacy for users.
Linea, whose mission is to build the industry’s most secure zkEVM ecosystem, currently has over 3.7 million active users and close to 300 dApps, of which Lynex is a popular choice. Per the partnership, the DEX will be equipped with ZK features expressly designed by Salus for the platform.
zkLynex a Boon for DeFi Traders
The integration of Zero-Knowledge proofs on Lynex will ensure that transaction details remain private even during verification, meaning users can trade with confidence in the knowledge that sensitive information relating to their trades is not exposed.
Aside from the obvious benefits in terms of transactional privacy, the use of fully recursive SNARKs on Lynex will make complex transactions quicker and less costly while also enhancing the platform’s scalability.
zkLynex, as it will be known, introduces the concept of a dark pool to the DEX, analogous to a secret trading club where transactions remain hidden from public view until they are completed. According to Salus, whose services include smart contract audits and web3 penetration testing, this will assure greater price stability, since secret trades eliminate the risk of sudden volatile market reactions to large trades.
While the reporting of data post-trade execution promises to minimize market disruption, zkLynex also protects users from falling victim to slippage caused by MEV bots front-running and sandwiching. This process involves validators and MEV bots scanning the public mempool and exploiting knowledge of impending transactions to front-run trades.
Will Privacy-Preserving DeFi Become the Norm?
By recruiting Salus to elevate the security and privacy on its liquidity layer, Lynex is building on a commitment to deliver a superior user experience. To date, this has included implementing pool-rebalancing Gamma strategies to ensure a near 50/50 split, a process intended to dramatically reduce the risk of users suffering impermanent loss.
The news will cause some to wonder whether DeFi, long viewed as a lawless Wild West, is at the dawn of a new era where users can expect to enjoy robust privacy protections when interacting with dApps. While there is a high technical overhead with ZK technology, several ZK-powered blockchains have emerged and applications that implement ZK proofs into their services stand to gain a competitive advantage over rival protocols.
Former FCA regulator Diana Tlupova also believes the integration of ZK technology will enable DeFi platforms to meet regulatory requirements, without jeopardizing user data.
The Lynex-Salus partnership coincides with the launch of the former’s native token, $LYNX, which is listed on the MEXC and Gate exchanges on February 15. The asset, which has utility and governance functions, plays a pivotal role within the platform and can also be staked to secure the network in return for rewards.