ZigZag Exchange is a new decentralized exchange (DEX) on ZkSync that has recently attracted a lot of attention from the community with its 34% token airdrop for early users. However, the price of ZZ token has shown very unusual pump and dump signs. So, what is ZZ Exchange, and what are the reasons for such price volatility? Let’s find out in this article.
Nội dung bài viết
What is ZZ Exchange?
ZigZag Exchange is a non-custodial order book-based trading platform that uses Zk-Rollups technology to provide fast, secure, low-slippage, and low-cost trading experiences.
Products offered by ZZ Exchange:
- Dex with order book mechanism
Note: This is the most important product of ZZ Exchange, but currently only operates on Zksync lite, v1 version of Zksync, unlike Zksync era. Zksync lite is not compatible with EVM, has infrastructure and smart contract limitations.
- Mammoth Pool (not yet operational) The pool provides liquidity for order book trades.
- Users can deposit and withdraw tokens anytime.
- Whitelist market makers use liquidity to fill orders on Zigzag.
- zzNFT Marketplace (not yet operational)
- Dex with swap mechanism, operating on Arbitrum
- ZigZag Bridge: A bridge between Ethereum and ZkSync
Project team, investors, partners
No information available.
Roadmap & Update
ZigZag Exchange plans to launch on Zksync era, Stark net, and Arbitrum. However, the team has not yet announced specific timelines for these plans.
Token information
Key Metrics
- Ticker: ZZ
- Blockchain: Multichain
- Token Contract: 0xC91a71A1fFA3d8B22ba615BA1B9c01b2BBBf55ad
- Token Type: Governance
- Total Supply: 100,000,000
- Circulating Supply: 53,311,611
Token Allocation
- Team: 25%
- Advisors: 2.5%
- Investors: 4.7%
- Private LPs: 7.1%
- Contributor: 2.5%
- Community: 60.7%
- Ecosystem: 24.2%
- Airdrops: 34%
- IDO: 0.27%
Token use case
Voting for governance proposals and sharing revenue from the platform.
Onchain analysis
Smart money
🤓 Smart LP: 0xc08 is the top 1 holder of individual wallets, receiving 3.3 million ZZ from the deployer contract, then adding liquidity on Uniswap. By 11/12/2022, they withdrew liquidity and earned more than 100,000 tokens. It is worth noting that three days later, the price of ZZ sharply dropped from $4 to less than $1.
Currently, they are still holding and have not sold yet.
The price of ZZ token is unpredictable.
From 8-13/12/2022:
The two largest liquidity pools on DEX, FRAX/ZZ and USDC/ZZ, were suddenly almost entirely withdrawn by two large LPs, 🤖 Frax Finance: Comptrollers and 🤓 Smart LP: 0xc08, leading to significant fluctuations in the ZZ price (within the range of $1-5.5). After that, a new USDC/ZZ pool was created with an initial price of $0.81. This action is quite difficult to understand, and no explanation has been recorded. The ZZ price also started to decline from this period.
Another wallet labeled High Balance [0x41009d]
Received a large amount of tokens from the Treasury wallet, then divided the tokens into smaller wallets and sold them in two phases:
- One phase on 9/12: sold on DEX exchanges before these pools were withdrawn (~150K ZZ)
- One phase on 21-23/1/2023: transferred to MEXC for sale (~225K ZZ)
This action had a significant impact on the price because liquidity on Dex and daily trading volume of ZZ in these two periods was very low.
Currently, [0x41009d] still has 1.4 million tokens in the wallet and is the top 4 holder (individual wallet).
Summary
ZigZag is a project that has received a lot of attention from the community as a prominent DEX on Zksync, but it is only running on Zksync lite and has not yet launched on the main Zksync era network. The ecosystem of products is still fragmented and not yet complete. Part of this is due to the limited technology of Zksync lite, and users are looking forward to the mainet launch on the upcoming Zksync era. I have compiled a watchlist of the top ZZ token holder wallets, which you can follow at: https://s.depocket.com/ZZ_topholder.
