ZKSpace Releases Eco Deposit Method to Substantially Reduce Gas Fees for L1-to-L2 Deposits
SINGAPORE, Jan. 28, 2022 /PRNewswire/ — ZKSpace, a product developed by L2 Labs Foundation, will introduce an Eco Deposit method on Jan 28, 2022 at 10:00 UTC, to help users save gas fees substantially for deposits from Layer 1 to Layer 2. Currently, ZKSpace offers two deposit methods: deposit from the Layer 1 account or deposit from the Layer 2 account. Deposit from the Layer 1 account means that users will need to first transfer assets from their Layer 1 wallets to the ZKSpace Layer 2 wallets. Massive gas fees will be incurred during the process, especially when the Ethereum network is congested.
From Jan 28 to Feb 10, top 5,000 users will be awarded with 200 ZKS each for making a deposit on ZKSpace via either the Deposit or the Eco Deposit method. Each address can only participate in the campaign once.
High Gas Fees for L1-to-L2 Transfers: An Overview
Ethereum currently holds a firm position as the blockchain with the most large-scale and active applications, as well as the largest developer community. The problem that comes with more adoption is the trade-off of scalability and high gas fees. As it currently stands, the Ethereum network (gas) fees are pricing small-time retail investors out of the market who struggle to justify spending up to hundreds of dollars worth of ETH on transaction fees for each and every interaction with the network.
Layer 2 and Rollups solutions are designed to solve the scalability issue by enabling faster transaction speeds and cheaper gas fees. Nevertheless, these solutions only reduce gas fees on Layer 1 and users must continue to pay significant fees to transfer their initial assets from Layer 1 to Layer 2, making the solution far from perfect.
Eco Deposit: A More Economic Method
To help users save the gas fee, ZKSpace will launch the “Eco Deposit” mode and provide initial Layer 2 liquidity to 4 tokens: ETH, USDT, ZKS, and WBTC, each 500,000 USD respectively. Users can transfer tokens to the official address through the deposit page or their wallets. Once the transaction is successful, their Layer 2 addresses will receive the tokens deposited minus a $2 Eco Deposit gas fee (based on the latest pricing on Layer 2), which is 70% cheaper than the primary deposit method from Layer 1. For the protection of L2 security, a single deposit cannot be higher than $200K. Users are recommended to make the transfer > $200K through a primary deposit method. If there’s an error, please get in touch with customer service for a refund. Currently, ZKSpace doesn’t accept a single deposit lower than $10. ZKSpace will replenish the funds from Layer 1 to Layer 2 based on the balance of the Layer 2 liquidity. Once any tokens’ Layer 2 liquidity balance is lower than $200K, ZKSpace will perform a deposit and add liquidity. The gas fee for the deposit will be covered by every user’s $2 Eco Deposit gas fee.
The Eco Deposit deposit option is an effective solution to help address the expensive gas fee issue. ZKSpace has been diligently working on new product development and user experience optimization. Please stay updated on the latest adventure.
The all-new ZKSpace platform consists of three main parts: ZKSwap, the innovative Layer 2 AMM DEX utilizing ZK-Rollups technology, payment service ZKSquare, and an NFT minting center and marketplace called ZKSea. With an all-new-look user interface, NFT support, unlimited token listing, smoother withdrawal, optimized efficiency, and multi-chain support, ZKSpace aims to implement EMV-compatible ZK-Rollups and bring the community more layer 2-based products soon.
SOURCE L2 Labs Foundation