Layer-2 is already forming as a phenomenon inherited from Optimism and Arbitrum’s substantial airdrop effects. The completion of Ethereum Shanghai provides Layer-2 solutions with more time to recruit consumers. Together with Optimism, possible scaling options include StarkNet, Abitrum, and zkSync.
zkLend is a lending and money market platform built on StarkNet, Ethereum’s Layer-2 solution. As a consequence, zkLend combines zk-rollup scalability, improved transaction speed, cost reductions, and Ethereum security.
Zk Rollup is one of the Zero Knowledge Proof techniques for developing scalability on the Ethereum network.
Zk Rollup technology will enable the aggregation of several transactions and Rollup blocks, as well as the generation of proofs for Off-chain blocks.
In the Ethereum network, smart contracts will validate transaction proofs without re-executing transactions. This lowers gas costs since proof-of-concept verification requires fewer calculations and transactions. Other projects that use Zk Rollup include dYdX, Loopring, Zksync, Starknet, and others.
zkLend offers parallel money market access solutions for two client files, which include:
Initially, the two initiatives will run separately; but as time passes and the demand for liquidity grows, Apollo and Artemis will collaborate to complement one another.
ZkLend = Ethereum + Starknet + Zk Rollups
Based on Starkware’s StarkNet, zkLend will be able to grow at a fraction of the cost of Ethereum while inheriting its high degree of security. StarkNet is the foundation for zkLend, and StarkNet is a scaling solution based on zero-knowledge proof (zkRollups) technology. StarkNet provides rapid transaction speeds and minimal transaction costs (approximately $0.2 against $8 on Ethereum).
To create one of StarkNet’s primary DeFi platforms:
Additional notable zkLend features include two-sided mortgage and loan aspects, protocol lending, and variable liquidation costs.
The team’s significant expertise in conventional banking, fintech, and consumer companies, as well as leading cryptocurrency exchanges and DeFi protocols, drives the creation of breakthrough products and solutions. Now, the zkLend Reviews article will learn about how the project works.
zkLend is developed on the StarkNet platform.
StarkNet is a decentralized ZK-Rollup, which is an L2 network on Ethereum. StarkNet helps dApps achieve unlimited scale for their computations while taking advantage of the security of Ethereum. Developers can write StarkNet contracts and deploy them on the network, and users can send transactions to these contracts (in a similar way to how it is done on Ethereum).
The StarkNet node (called a sequencer) is implemented in Python. The StarkNet transaction execution environment, known as the StarkNet OS (similar to the Ethereum Virtual Machine), is deployed in Cairo. This optimizes the proof performance of each transaction execution. A Solidity contract deployed on Ethereum connects the StarkNet (L2) network to Ethereum (L1).
At its heart, zkLend provides a permissionless service for DeFi users (Artemis) as well as permissioned compliance solutions for institutional customers (Apollo).
At a high level, Artemis allows users to deposit assets in order to receive a return, with the option of using these assets as collateral to borrow additional digital assets. Apollo operates similarly, except borrowing and lending operations are restricted to permissioned individuals who have completed the protocol’s KYC/KYB procedure. As a consequence, the two products will operate separately, with their own capital pools and governance.
Users will be able to deposit their assets into a reserve pool, which will provide liquidity in the money market.
In exchange, the user will get an interest-bearing zToken reflecting their deposited percentage in the pool, as well as a claim on the pool’s interest earnings. The total assets in the pool grow over time as a result of the interest gained on borrowing, the amount of which depends on the interest rate model of each asset.
Customers may deposit whatever money they want into the pool with no time limit.
Users will be able to use their zToken as security to borrow assets placed in various money markets.
The interest rate model will determine the borrower’s financing rate for each property. The maximum loan amount is governed by the borrower’s borrowing ability. If a user’s total loans surpass their borrowing limit, their holdings may be liquidated in order to maintain the protocol’s sustainability.
The protocol includes the native token ZEND. Users will be able to stake ZEND and benefit from governance, higher rate rewards, and the interest income gained by pools.
Several members of the zkLend team have worked for well-known firms such as Bloomberg, Standard Charter Bank, Credit Suite, and even crypto companies such as Crypto.com and StarkWare.
Moreover, advisors for the project come from significant financial firms such as Mirae Asset and the World Bank.
zkLend raised $5 million in a seed round led by Delphi Digital, mentored by StarkWare and Three Arrows Capital.
Other major investors include Genesis Block Ventures, Alameda Research, CMS, MetaCartel DAO, DCVC, Amber Group, TPS Capital, Ascensive, D3Web Capital, 4RC, and SkyVision Capital, among other top Web 3.0 angels.
zkLend is based on StarkNet technology developed by StarkWare. As a result, firms in the StarkWare ecosystem, including StarkNet, will work together to expand this ecosystem.
While Zk Rollup technology has received a lot of attention recently, and ZkLend is a good name, there are many projects that are heading in the same direction as ZkLend, such as AAVE P3, Aurigami, Basion…and but this project has gone extremely well. This generates both a competitive market and a chance for consumers to choose the best product. Hopefully the zkLend Reviews article has helped you understand more about the project.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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