[Long English Thread] Lighter × Succinct: ZK-powered High-performance Contracts and the Vision of Shared Sequencers

Chainfeeds Guide:

This architecture establishes a clear division of labor: L1 (Ethereum) serves as a secure global balance sheet, responsible for capital custody; L2 (Lighter) acts as a high-performance execution layer, responsible for risk management; ZK infrastructure (Succinct) serves as the cryptographic foundational network, reliably connecting the two.

Source:

Author:

jaehaerys

Opinion:

jaehaerys: In the pursuit of blockchain scalability, the L2 narrative has long been dominated by the bridge metaphor. For users to enter high-throughput, low-cost Rollup environments, assets must be locked on L1 and a synthetic equivalent is obtained on L2. However, this model has spawned new issues: liquidity fragmentation and a series of catastrophic cross-chain bridge attacks—some of the largest financial losses in the history of decentralized finance. In response, a new alternative approach has emerged: instead of transferring assets to the computation environment, only bring verifiable information about the assets into the computation environment. This idea first appeared in a SuccinctLabs livestream, where Gauntlet founder Tarun Chitra, while contemplating the future of ZK systems, suggested that ZK protocols could enable more natural and efficient asset migration. Assets could remain locked on the Ethereum mainnet (L1), but through zero-knowledge proofs (ZKP), their utility could be securely verified and used as collateral on L2. In this way, the location and function of capital are separated: assets stay in the most secure environment, L1, while their value is projected onto the high-performance L2, significantly improving capital efficiency. For example, a user's stETH or Morpho Vault position can continue to generate yield on L1, while its proof of value is used as collateral leverage on L2. This model not only reduces cross-chain risks but also promotes cross-layer composability and secure interoperability. The implementation of this model relies on the combination of Lighter and Succinct. Lighter is a perpetual contract decentralized exchange (Perp DEX) based on a central limit order book (CLOB), whose core architecture uses custom zk circuits instead of general-purpose zkVM or zkEVM. This design allows its cryptographic system to be specifically optimized for matching, risk engines, and liquidation logic, making it highly efficient in verifying specific trading functions and avoiding the costly and slow bottlenecks of general-purpose proofs. On the other hand, Succinct provides the SP1 zkVM—a RISC-V-based virtual machine supporting the full Rust ecosystem, capable of efficiently encoding complex application logic, such as DeFi Vault valuation methods or liquidation engines. Additionally, Succinct operates a decentralized proving network (SPN), a competitive proof generation market powered by GPUs, FPGAs, and potentially ASICs in the future, capable of quickly and cost-effectively generating the required proofs. Combined, users can use productive assets on L1 for leveraged trading on L2 without sacrificing yield. For example, users continue to earn interest from Morpho Vault on L1, while the proof of these assets' value provides margin for perpetual trading on L2. Furthermore, this architecture can support the tokenization of complex L2 strategies, allowing them to circulate on L1 as standardized assets, such as native 3x ETH leveraged tokens, which can be used in applications like Aave lending. This model not only improves capital efficiency but also enriches the possibilities of cross-layer composability. The core of this architecture is the collaboration between the Escrow contract and the Succinct proving network. Users first deposit ETH, stablecoins, or yield-generating assets into the Escrow contract on Ethereum L1. The Escrow contract triggers an event, which is received by the Succinct proving network to generate a SNARK proof, proving that the assets are indeed locked. After the verification contract confirms the proof on-chain, the Sequencer credits the user's margin account on Lighter L2. Subsequently, L2 state commitments (order book status, balances, etc.) are submitted to the data availability layer (DA) for future verification. Throughout the process, assets never leave L1, ensuring security. More importantly, when users face censorship or issues on L2, they can directly submit an exit request on L1 through an escape hatch mechanism. Users initiate an exit transaction on L1, the DA provides state commitments and inclusion proofs, and the Succinct network converts the request into a proof task and generates a SNARK proof. If verification passes, the Escrow contract forcibly releases the funds, returning the assets directly to the user. This design ensures that regardless of what happens on L2, users can always rely on L1's security to retrieve their assets. Similar to the escape path of traditional Rollups, but in scenarios involving asset utility and collateral migration, this model provides a more flexible and censorship-resistant fund exit guarantee, further highlighting the advantages of separating capital location and function. [Original text in English]