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Paradex logoParadex

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About

Paradex is a high-performance crypto-derivatives exchange built on a Starknet Appchain.


Value secured
$44.06 M11.0%
Canonically Bridged
$0.00
Natively Minted
$0.00
Externally Bridged
$44.06 M

  • Tokens
  • Past day UOPS
    No data
  • 30D ops count
    No data
  • Stage

  • Type
    ZK Rollup
  • Purposes
    Universal, Exchange
  • Sequencer failureState validationData availabilityExit windowProposer failure

    Badges

    About

    Paradex is a high-performance crypto-derivatives exchange built on a Starknet Appchain.

    Value Secured

    2024 Mar 09 — 2025 Mar 09

    Milestones & Incidents

    Paradex starts using blobs

    2024 Mar 26th

    Paradex starts publishing data to blobs.

    Learn more

    Open Beta Mainnet Launch

    2023 Oct 1st

    Paradex launches Open Beta on Mainnet.

    Learn more
    Risk summary
    Risk analysis
    Sequencer failureState validationData availabilityExit windowProposer failure

    Sequencer failure

    No mechanism

    There is no mechanism to have transactions be included if the sequencer is down or censoring.

    State validation

    ZK proofs (ST)

    STARKs are zero knowledge proofs that ensure state correctness.

    Data availability

    Onchain (SD)

    All of the data (SD = state diffs) needed for proof construction is published onchain.

    Exit window

    None

    There is no window for users to exit in case of an unwanted regular upgrade since contracts are instantly upgradable.

    Proposer failure

    Cannot withdraw

    Only the whitelisted proposers can publish state roots on L1, so in the event of failure the withdrawals are frozen.

    Rollup stageParadexParadex is a
    Stage 0
    ZK Rollup.
    There is no available node software that can reconstruct the state from L1 data, hence there is no way to verify that this system is a rollup.

    Learn more about Rollup stages
    Please keep in mind that these stages do not reflect rollup security, this is an opinionated assessment of rollup maturity based on subjective criteria, created with a goal of incentivizing projects to push toward better decentralization. Each team may have taken different paths to achieve this goal.
    Technology

    Validity proofs ensure state correctness

    Each update to the system state must be accompanied by a ZK proof that ensures that the new state was derived by correctly applying a series of valid user transactions to the previous state. These proofs are then verified on Ethereum by a smart contract.

    Zero knowledge STARK cryptography is used

    Despite their production use zkSTARKs proof systems are still relatively new, complex and they rely on the proper implementation of the polynomial constraints used to check validity of the Execution Trace.

    • Funds can be lost if the proof system is implemented incorrectly.

    1. STARK Core Engine Deep Dive

    All data required to reconstruct rollup state is published on chain

    State diffs are publish onchain as blob or calldata on every state update. The state diffs contain information on every contact whose storage was updated, and additional information on contract deployments. From diffs full system state can be recovered. Contracts’ code is not published on L1, but can be trustlessly verified if available elsewhere.

    1. On-Chain Data - Starknet documentation
    Learn more about the DA layer here: Ethereum logoEthereum
    Operator

    The system has a centralized operator

    The operator is the only entity that can propose blocks. A live and trustworthy operator is vital to the health of the system.

    • MEV can be extracted if the operator exploits their centralized position and frontruns user transactions.

    Users can't force any transaction

    There is no general mechanism to force the sequencer to include the transaction.

    • Users can be censored if the operator refuses to include their transactions.

    1. Censorship resistance of Starknet - Forum Discussion
    Withdrawals

    Regular messaging

    The user initiates L2->L1 messages by submitting a regular transaction on this chain. When the block containing that transaction is settled, the message becomes available for processing on L1. ZK proofs are required to settle blocks. Note that the message request can be censored by the Sequencer.

    • Funds can be frozen if the operator censors withdrawal transaction.

    1. Withdrawing is based on l2 to l1 messages - Starknet documentation

    Emergency exit

    There is no generic escape hatch mechanism as Starknet cannot be forced by users into a frozen state. Note that a freezing mechanism on L2, to be secure, requires anti-censorship protection.

    Permissions

    Ethereum

    Roles:

    Operator 0xC70a…4fe2

    Permissioned to regularly update and prove the state of the L2 on L1.

    Permissioned to manage the Operator role, finalize state and change critical parameters like the programHash, configHash, or message cancellation delay in the core contract.

    Actors:

    ParadexAdminMultisig 0x0a64…6B93
    • A Multisig with 2 / 5 threshold.
    • A Governor.
    • Can upgrade the implementation of Paradex.
    SHARPVerifierAdminMultisig 0x21F9…AEc4
    • A Multisig with 2 / 4 threshold.
    • Can upgrade the implementation of SHARPVerifierCallProxy.

    Used in:

    • A Governor.
    • Can upgrade the implementation of Paradex.
    • Is allowed to interact with USDC Bridge - disable the withdrawal limit.
    • Is allowed to interact with USDC Bridge - enable the withdrawal limit.
    • Is allowed to interact with USDC Bridge - manage critical access control roles and the role that can upgrade the implementation.
    • Can upgrade the implementation of USDC Bridge.
    • Is allowed to interact with USDC Bridge - disable the withdrawal limit.
    • Is allowed to interact with USDC Bridge - enable the withdrawal limit.
    • Is allowed to interact with USDC Bridge - manage critical access control roles and the role that can upgrade the implementation.
    Smart contracts
    A diagram of the smart contract architecture
    A diagram of the smart contract architecture

    Ethereum

    Central rollup contract. Receives (verified) state roots from the Sequencer, allows users to consume L2 -> L1 messages and send L1 -> L2 messages. Critical configuration values for the L2’s logic are defined here by various governance roles.

    Implementation used in:

    Upgradable contract through which the SHARPVerifier can be called. This allows SHARPVerifierAdminMultisig to change the otherwise immutable verifier contract with 0s delay.

    Proxy used in:

    SHARPVerifier 0x9fb7…1942

    Shared Starkware SHARP verifier used collectively by Starknet and other SN stack and StarkEx projects. It receives STARK proofs from the Prover and verifies the integrity of the offchain execution including a correctly computed state root which is part of the Program Output.

    Implementation used in:

    Standard Starkware bridge escrow (single token). Withdrawals can be throttled to 5% of the locked funds per 24 hours. This contract stores the following tokens: USDC.

    Can be upgraded by:
    MemoryPageFactRegistry 0xe583…C460

    Auxiliary to the SHARPVerifier contract: Verified ‘memory fact pages’ get stored here. This is important as it registers all necessary onchain data produced by the verifier.

    Implementation used in:

    Value Secured is calculated based on these smart contracts and tokens:

    Paradex USDC Escrow. The current bridge cap is 50.00 M USDC.

    The current deployment carries some associated risks:

    • Funds can be stolen if a contract receives a malicious code upgrade. There is no delay on code upgrades (CRITICAL).