Telegram Tidbits: Late March

zkNFTs, private dApps, Ethereum L2 integration, and dev updates.

March 20th

Community member Angel asked:

Are zkNFTs possible in the long run?

Greybeard:

We actually built in support for something like ordinals already (all it does is allow arbitrary data to be tacked on to 0 value utxos), but we don’t have any immediate plans to support or encourage its use. I am not a fan of NFTs but I am a fan of making the protocol as permissive as possible to let people do their own thing if they want. We’re hoping that if things go well we can continue to feature creep the protocol and provide the freedom to do what you want.

Our system is very similar to BTC because it uses UTXOs so we can easily support a lot of similar features.

UI:

Thinking on zk to zkAsset swaps… if I swap let’s say zkXFT to zkBTC, how would the mechanics work. Is it burn zkXFT, mint XFT, burn XFT, mint zkBTC? Or would this all be done on the offshift side without the need for the burn mint mechanics in middle of leaving and re entering Offshift ecosystem? Thinking of transaction cost difference of the two approaches.

Greybeard:

You go straight from zk to zk inside the system. You spend a utxo to generate a different utxo. This is the cheapest type of tx in the protocol.

UI:

Like pull oracle on zkxft price, burn it, and mint equivalent zkbtc. All on Offshift side. No leaving and re entering

Greybeard:

The publisher pushes fresh oracle data at publishing time into the private domain and that’s what lets users avoid having to ever exit.

UI:

Got it. Makes sense. I think you guys touched on this a while back but not sure on latest stance. After zkxft there will be others. Is the plan to have the internal team build the dex in offshift ecosystem or would that be an outsourced thing?

In past as multiple zks rollout a dex was floated but left up who would ultimately build. Just curious if stance here was same. Or I guess since there is no need for liquidity pools now it wouldn’t be a dex. It would be just some UI, and I guess it would also be zero slippage price impact then right? Bc no AMM?

Greybeard:

If you mean the other synthetics, we’ll be doing that.

There will technically be slippage because the price used will be whatever is returned at publishing time. If the mempool is saturated by usage there should be very little though since that would imply demand and frequent batches being published back to back as txs roll in. You could also increase the fee to incentivize faster batch publishing to avoid setting higher slippage, or self publish if it’s a big order.

UI:

Got it, makes sense. It relates to the mempool activity levels.

Angel:

So, if there is slippage, there’s a swap happening, etc. But there isn’t a pool. If I give away my zkXFT to grab some zkBTC. Who is absorbing my zkXFT?

UI:

It is slippage because of the publishing of the txn to the oracle feed pull and when the call is done. Not slippage in the true sense of a market maker supply demand. At least that’s how I interpret that. So if you self publish your txn the call to the oracle happens basically immediately so no slippage.

Greybeard:

Correct.

Mouh:

A community member asked this question and I wish you can provide an answer to it. Is it possible to let people build private dApps on offshift protocol. Tell us if it’s technically possible or not. And do you think it’s something you might work on in the future?

Greybeard:

That’s highly dependent on the type of app. We are not trying to be a generic zk dapp platform, Aztec is building that. If you can build it on BTC you can do it on Offshift. Whether that changes in the future is TBD.

March 25th

Community member Raffael Here asked:

Is it possible for other eth L2s to integrate or make use of offshift v2 in any way or will v2 itself be already similar to gas fees on L2s? And is interoperability for other chains theoretically possible or planned for the future after V2?

Reply from Greybeard:

We are scaling on L1 the same way L2 zk rollups scale, by batching user transactions and amortizing the cost of the verifications. The dapp lives on L1. L2s could build their own bridges, sure. It will be as composable as technically possible.

March 28th

Development update by team member Greybeard:

No new features for the time being, just getting everything together. Protocol code is probably finalized for now, but we still have to wrap up clientside/frontend adjustments. No ETAs yet on the new testnet. Very busy preparing to ship and have been for a few weeks now.

For all the latest developments, make sure to join the official Offshift Telegram and follow us on X !

And keep an eye on our team member’s X accounts as well: Greybeard , n00b and Johnny !