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Paradex is a high-performance crypto-derivatives exchange built on a Starknet Appchain.
Paradex is a high-performance crypto-derivatives exchange built on a Starknet Appchain.
2024 Mar 09 — 2025 Mar 09
There is no mechanism to have transactions be included if the sequencer is down or censoring.
STARKs are zero knowledge proofs that ensure state correctness.
All of the data (SD = state diffs) needed for proof construction is published onchain.
There is no window for users to exit in case of an unwanted regular upgrade since contracts are instantly upgradable.
Only the whitelisted proposers can publish state roots on L1, so in the event of failure the withdrawals are frozen.
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.
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.
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.
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.
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.
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.
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.
Permissioned to manage the Operator role, finalize state and change critical parameters like the programHash, configHash, or message cancellation delay in the core contract.
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:
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.
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:
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).