Lighter, Perp DEXs and Custom ZK Circuits

In this episode of Zero Knowledge, Anna Rose and Tarun Chitra interview Vlad and Murat from Lighter, a perp DEX (decentralized exchange for perpetual futures) built as a ZK rollup on Ethereum. The discussion covers the basics of perp DEXs, including how they work, their history, and their role in crypto markets, as well as how Lighter differentiates itself through the use of ZK (zero-knowledge) technology for verifiable matching and liquidations. They explore the advantages and disadvantages of custom ZK circuits versus general-purpose ZKVMs, and how Lighter's architecture enables composability with the Ethereum ecosystem and potential future privacy features. The conversation also touches on the evolution of market-making mechanisms, the importance of transparency and verifiability, and the unique benefits of having a team with both trading and cryptography expertise.