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ZIP-0805

Zoo DEX (V2/V3 Native, V4 Lux DEX Precompile)

Draft

Native Uniswap-style AMM V2 (constant product) and V3 (concentrated liquidity) on Zoo L1, plus V4 implemented as a precompile to the Lux DEX for cross-chain routing

Type
Standards Track
Category
ZRC
Author
Zoo Labs Foundation
Created
2025-12-15
dexammuniswapconcentrated-liquidityprecompilelux-dexgpu-native

ZIP-0805: Zoo DEX

Abstract

Zoo L1 ships a native AMM DEX in three versions:

  • V2 — constant product (x*y=k) AMM, Uniswap V2 surface.
  • V3 — concentrated liquidity, Uniswap V3 surface, multi-fee-tier pools (5 / 30 / 100 bps).
  • V4 — not a separate AMM: a precompile interface that routes swaps to the Lux DEX (~/work/lx/dex) via B-Chain messaging.

All curve evaluation, tick-crossing math, and order matching execute as GPU kernels on the Zoo L1 validator (LP-009 + LP-132). The optional Local DEX precompile mirrors the Lux DEX matching primitives against Zoo-local order books for chain-internal CLOB use cases.

Motivation

  1. Zoo-native trading pairs need on-chain liquidity. Per-LLM tokens, ZRC-721 fractional pools, and DAO governance pools should not require a cross-chain hop to trade.
  2. Composability. Existing Uniswap V2/V3 tooling (analytics, audit checklists, indexers) translates directly.
  3. Latency. GPU-native curve math gives Zoo block-level swap throughput materially higher than CPU-EVM peers.
  4. Cross-chain depth. V4 plugs into the Lux DEX router so Zoo users can access the canonical Lux ecosystem liquidity venue without leaving their wallet.

Specification

V2 (constant product)

  • Factory contract creates pools for (ZRC-20, ZRC-20) pairs.
  • LP shares are minted as ZRC-20 receipt tokens.
  • Default fee: 30 bps. Per-pool override allowed under DAO governance.
  • Standard Uniswap V2 router interface (swapExactTokensForTokens, addLiquidity, etc.) for tooling compatibility.

V3 (concentrated liquidity)

  • Tick spacing: configurable per fee tier (1 / 60 / 200 ticks for 5 / 30 / 100 bps respectively).
  • Range positions: ERC-721 NFTs per the Uniswap V3 NonfungiblePositionManager pattern.
  • Fee accumulation: per-position growth in fee numerators, claimed via collect.

V4 (Lux DEX precompile)

  • Precompile address: 0x0000000000000000000000000000000000000A04 (illustrative; final address assigned at activation).
  • Interface: route(srcToken, dstToken, amountIn, minOut, recipient) -> amountOut.
  • Implementation: B-Chain message to Lux DEX, response handled inline.
  • Use V4 when: deepest book is on Lux, cross-chain routing required, institutional CLOB semantics needed.

Local DEX precompile (optional)

  • Precompile address: 0x0000000000000000000000000000000000000A05 (illustrative).
  • Implements the same matching primitives as Lux DEX but against Zoo-local order books.
  • Shares kernel implementation with Lux DEX so behaviour is identical; only venue and gas accounting differ.

Per-LLM token markets

Per-LLM chain tokens (per zoo-per-llm-chains) trade against $ZOO and against each other on V2/V3. Inference revenue routed through per-LLM chain attribution graphs settles into the relevant V3 pool, providing price discovery for model quality.

NFT fractional pools

ZRC-721 NFTs migrated to Zoo L1 (per ZIP-0807) can be wrapped into ERC-4626 vault shares and traded as concentrated-liquidity V3 positions. Combined with F-Chain FHE (LP-013), fractional positions can trade with confidential balances.

Rationale

V2 and V3 cover the dominant AMM patterns. V4 as a precompile (rather than a third AMM) avoids fragmenting Zoo-local liquidity and centralises cross-chain routing on the canonical Lux DEX venue. Reusing the Uniswap surface guarantees tooling compatibility without semantic risk.

Versioning Policy

  • V2 and V3 are stable.
  • V4 tracks the Lux DEX interface contract. Breaking changes to Lux DEX require a corresponding V4 revision with a deprecation window of at least one Quasar epoch.
  • There is no separate "Zoo V4 AMM"; V4 is the precompile, full stop.

Reference Implementation

  • V2/V3 contracts: ~/work/zoo/contracts/dex/
  • V4 precompile: ~/work/zoo/node/precompile/dex/

Security Considerations

  • V2/V3 inherit the Uniswap audit history at the algorithmic level; on-chain implementations are re-audited for GPU-native execution semantics.
  • V4 precompile validates B-Chain message signatures end-to-end; a compromised B-Chain validator cannot forge V4 swap results because the response carries a Lux DEX QuasarCert.

References

  • LP-009 — GPU-Native EVM
  • LP-132 — QuasarGPU Execution Adapter
  • LP-134 — Lux Chain Topology
  • zoo-3-0-launch paper §4 (Zoo DEX)
  • Adams, H., et al. "Uniswap v3 Core" (2021)
  • Lux DEX: ~/work/lx/dex