zkAMMs: The Future of AMMs?

A recent research post introduced zkUniswap, which utilizes validity proofs for executing on-chain swaps. Various benefits come with using validity proofs for on-chain swaps, with the main one being maximal extractable value (MEV) resistance. This is because the swap's information is submitted off-chain to a prover, who then generates the corresponding validity proof for a swap. Only the proof is then submitted on-chain, eliminating the possibility for MEV bots to front-run users' swaps since information is only revealed for verification after a swap has been executed. 

Other benefits include improved efficiency and enhanced privacy, though such benefits are typically not the main intent for using validity proofs. This is because improved efficiency is primarily due to shifting the computation off-chain and not technically an actual reduction in computation required. Indeed, more computation is needed with zkAMMs. Additionally, privacy is a plus point for users but not necessarily for protocols looking to be well-regulated since regulators would expect transparency for accountability.