Top 10 DeFi Projects On ZkSync Era
zkSync Era, the upgraded version of zkSync Lite, achieved a significant milestone by launching on the mainnet on March 24, 2023. This development represents a groundbreaking move in the race to perfect zkEVM technology, as zkSync takes the lead.
Utilizing Zk Rollups technology, zkSync Era is a layer 2 solution designed to enhance transaction speed while bolstering network security. It stands as a trusted protocol for facilitating low-cost, rapid, scalable payments, and privacy for Ethereum through Zero Knowledge (ZK) Rollup technology.
At the core of this innovation lies zkEVM, a virtual machine that enables Zero-knowledge proof (ZKP) computation and is fully compatible with Ethereum’s existing EVM (Ethereum Virtual Machine). This implementation of ZK technology significantly broadens the scope of executing smart contracts on the Ethereum network. zkSync Era harnesses the power of zkEVM to perform zero-knowledge proof calculations while seamlessly integrating with Ethereum’s existing infrastructure. Furthermore, developers can create ZK-compatible smart contracts using the EVM’s traditional Solidity language.
Matter Labs, the visionary blockchain company, is the driving force behind zkSync Era. Focused primarily on layer 2 technologies, Matter Labs has raised an impressive $458 million in funding from prominent entities such as Dragonfly Capital, a16z, and Blockchain Capital. This substantial financial backing positions Matter Labs as a frontrunner in the evolving technology direction of ZK Rollups.
SyncSwap operates as an Automated Market Maker (AMM) with a user-friendly interface, leading in terms of Total Value Locked (TVL) on zkSync, and stands out for its unique integration of GeckoTerminal’s API. SyncSwap deserves to be one of the DeFi projects on ZkSync Era.
SyncSwap’s popularity stems from its typical AMM features, such as pool gauges, a flexible fee structure, and the application of the vetoken model. These features provide users with a seamless trading experience, further enhancing the platform’s appeal.
One of the notable elements of SyncSwap is its integration of Wiget from GeckoTerminal’s API. This integration enables users to access charts displaying trading pairs in the market, offering valuable insights into short- and long-term price fluctuations. Traders can place orders with confidence and make informed decisions, all within the SyncSwap platform.
SyncSwap is built on zkSync Era, which is a Layer-2 scaling solution on the Ethereum blockchain. This innovative solution is designed to facilitate fast and cost-effective transactions within the broader cryptocurrency market ecosystem. The launch of zkSync Era Mainnet, accompanied by TVL surpassing $100 million in just four days, has further solidified SyncSwap’s position as a prominent player within the zkSync Era ecosystem.
The user-friendly interface of SyncSwap has played a pivotal role in its growing popularity, making it accessible and intuitive for traders. Beyond that, the DEX also offers low fees and high liquidity, creating an attractive environment for traders seeking efficient and cost-effective trading options.
One of SyncSwap’s notable features is its “Multi-Pool and Concentrated Pool” system. This system is designed to address the issue of price slippage, which can be a concern for traders. By implementing these pools, SyncSwap enhances trading efficiency and reduces the risk of significant price fluctuations during transactions. This innovation ensures that users can trade assets with greater precision and confidence.
SyncSwap’s AMM employs a Multi-pool-based Smart Router mechanism, allowing users to swap tokens and optimize exchange rates while trading.
SyncSwap further extends its user-centric approach with a “Portfolio” feature. This feature empowers users to efficiently manage and track their assets, including a comprehensive transaction history. The convenience of this portfolio management tool is amplified by its seamless integration with leading bridge platforms, including zkSync Era Bridge, Orbiter, Multichain, and Celer Network. This integration simplifies asset management and cross-chain transactions for SyncSwap users.
In an effort to encourage trading activity and maximize user profits, SyncSwap has introduced a “Loyalty Fee Program.” Under this program, users automatically receive 1 ySYNC for every $1 in transaction fees generated. ySYNC can be periodically converted into tokenveSYNC, offering users a range of benefits such as enhanced voting rights, reduced transaction fees, and a share of dividends derived from SyncSwap’s fee collection. This loyalty program adds an extra layer of engagement and incentivizes users to participate actively on the platform.
As part of its ongoing expansion, SyncSwap is planning to launch a “Launchpad” in the near future. This forthcoming feature is poised to further enrich the SyncSwap experience, aligning with the platform’s commitment to offering comprehensive solutions and a holistic trading ecosystem.
ZeroLend is a lending protocol built on zkSync technology, backed by prominent oracle projects Chainlink and Pyth Network.
Real World Assets integration sets ZeroLend apart by bridging traditional financial instruments into the decentralized realm, expanding opportunities for users to leverage real-world assets within the DeFi space.
Meanwhile, Account Abstraction enhances privacy and security, empowering users with greater control over their financial transactions. To foster community engagement and participation, ZeroLend has earmarked 3% of its total token supply for airdrop activities.
ZeroLend facilitates seamless participation in the DeFi space by enabling users to act as liquidity providers or borrowers within the zkSync system. Offering lending and borrowing services for various supported assets across multiple chains, ZeroLend empowers users to engage in decentralized lending with ease.
Supported tokens can be deposited into the ZeroLend protocol, allowing users to earn profits through interest. Borrowers on the platform utilize these tokens, paying interest to the protocol in return. The deposit interest rate, typically expressed as an Annual Percentage Yield (APY), provides users with an opportunity to generate passive income.
Users’ maximum borrowing limits are determined by factors such as deposit value, asset type, and collateral liquidity. The assets provided by users directly influence the maximum loan value they can access, providing flexibility and transparency within the borrowing process.
ZeroLend introduces its native stablecoin, ONEZ, designed to leverage the native yield of the lending protocol while possessing the capability for self-repayment. Users can mint ONEZ and engage in various DeFi activities within the zkSync ecosystem, enhancing liquidity and utility within the platform.
A robust governance system is implemented to oversee the ZeroLend protocol, utilizing ZERO as the governance token. This empowers token holders to actively participate in decision-making processes, ensuring the protocol’s evolution aligns with community interests and objectives.
ZeroLend introduces Account Abstraction, enabling users to conduct transactions without incurring gas fees. This feature extends beyond financial transactions, allowing users to log into social networks and delegate transactions seamlessly, enhancing accessibility and usability within the ecosystem.
ZeroLend pioneers the integration of Real World Assets into its protocol, envisioning the inclusion of trillions of USD from the RWA market. This integration expands opportunities for users, bridging traditional financial instruments into the decentralized realm and unlocking new avenues for investment and growth.
The genesis of Mute.io can be traced back to its predecessor, NIX, a blockchain project operating under the Proof of Work (PoW) mechanism. NIX was designed to be a pioneering layer 2 solution, harnessing the power of zero-knowledge proof technology to enhance blockchain functionality. As the project evolved, it transitioned towards zkSync, a layer 2 scaling solution for Ethereum, and rebranded itself as Mute.io.
Mute.io’s primary offering, the Mute Switch, stands at the forefront of this DeFi revolution. Functioning as a DEX AMM, it distinguishes itself with the incorporation of limit orders, adding an element of control and flexibility for users. Beyond its core role as a DEX, Mute Switch takes on the dual roles of a farming and bond platform, offering users diverse opportunities to engage with the DeFi ecosystem.
What sets Mute.io apart in the DeFi landscape is its foundation on zkRollup technology, firmly rooted in the Ethereum blockchain and zkSync. This strategic positioning positions Mute.io as a critical DeFi Hub, ushering in a new era of liquidity provision for protocols built on zkSync. Mute.io is one of the DeFi projects on ZkSync Era that provides many useful features for users.
At the heart of Mute.io’s offerings lies the Mute Switch, an Automated Market Maker (AMM) DEX that distinguishes itself by integrating a limit order feature. Similar to other decentralized exchanges, Mute Switch offers users the ability to provide liquidity to both stablecoin pools (stable curve pool) and normal curve pools. This flexibility empowers users with greater control and enhanced trading experiences.
Mute Switch Bonds take inspiration from the successful model of OHM (Olympus DAO) by employing the Protocol Owned Liquidity (POL) mechanism. Under this mechanism, users can participate in a Staking & Bond structure by providing liquidity to the MUTE/ETH pair and receiving in return the LP token of MUTE/ETH, aptly named vMLP. This vMLP (LP token) serves as the gateway to acquire Mute’s Bond, referred to as dMute.
dMute is a soul-bound token, offering users the opportunity to convert it to MUTE, along with an additional interest amount after a locking period of 7 days. During this period, users can opt to entirely sell their LP tokens to Mute Bonds, thereby increasing their MUTE token holdings.
Mute.io’s ecosystem extends to farming, where users can deposit assets into the protocol to provide liquidity and engage in the Mute ecosystem. In return, participants receive MUTE tokens as rewards, sourced from revenue and platform fees.
Mute.io’s DAO, governed by the MUTE token, acts as an intermediary token granting access to the DAO. To participate in the Mute DAO, users are required to lock their MUTE holdings for a specific duration, ranging from 7 to 364 days. In return, they receive dMute, a soul-bound token uniquely tied to their wallet address.
The duration of the lock determines the quantity of dMute received, thereby bestowing greater influence within the DAO for proposing and voting on key decisions.
For liquidity providers holding a substantial amount of MUTE tokens, the Mute Amplifier offers an additional bonus feature. Rewards are structured in alignment with the Annual Percentage Yield (APY) revenue, driven by the platform’s revenue and fees generated from the Mute DAO.
Projects accepted into the Mute ecosystem will be allocated a specific quantity of MUTE tokens over a defined period, with a target APY for Liquidity Providers. The determination of amplifier pairs is vested in the Mute DAO, a token-holder-driven governance body.
zkSwap Finance is a DEX and the pioneer of the Swap to Earn concept within the zkSync Era ecosystem. At its core, zkSwap operates as a premier AMM, offering users a revolutionary incentive model that benefits both liquidity providers and traders alike.
Unlike traditional exchanges, zkSwap prioritizes user engagement by introducing a unique incentive program designed to reward participants for their contributions to the platform.
zkSwap enables seamless trading without relying on a Centralized Exchange. Transactions occur directly through users’ wallets, eliminating the need to trust third-party intermediaries with their assets.
The effectiveness of token swapping on zkSwap hinges on the availability of sufficient liquidity for the desired tokens. To incentivize liquidity provision, users who contribute to liquidity pools receive LP Tokens. These tokens not only represent their share of the liquidity pool but also entitle them to a portion of trading fees as rewards.
zkSwap Finance introduces Swap2Earn, a unique feature designed to incentivize user engagement. Through Swap2Earn, users are rewarded based on their trading activity on the platform. The more active a user is in swapping tokens, the greater their rewards.
The SwapBoard meticulously tracks all swap activities and allocates rewards accordingly, fostering a competitive trading environment while acknowledging users’ contributions. Additionally, a personalized dashboard offers users insights into their swapping activities and earned rewards, promoting transparency and accountability.
In addition to Swap2Earn, zkSwap introduces Farm2Earn, also known as yield farming. This feature allows users providing liquidity to earn additional rewards by locking their LP tokens into a smart contract. By participating in Farm2Earn, users can mitigate the risk of impermanent loss associated with providing liquidity while maximizing their earning potential.
Maverick Protocol stands out in the crowded DeFi landscape by introducing Directional LPing, a new mechanism within AMMs that aims to revolutionize the way users engage with liquidity pools. In addition, the protocol ingeniously merges the functionalities of Uniswap V2 and V3 models to create a comprehensive Dex that offers a wide range of benefits to DeFi enthusiasts.
One of the most enticing aspects of Maverick Protocol is its commitment to delivering the best possible rates for traders. The platform’s unique approach ensures that users have access to favorable rates, enabling them to optimize their trading strategies. Moreover, Maverick Protocol allows traders to earn high fees while simplifying the management of their liquidity positions, making it an attractive option for both novice and experienced traders.
Maverick Protocol operates as an Ethereum Virtual Machine (EVM) smart contract, with its initial launch on the Ethereum network. However, the platform has not limited its capabilities to just one blockchain; it has expanded to support various EVM-compatible Layer 1 (L1) and Layer 2 (L2) solutions.
This expansion demonstrates Maverick’s dedication to providing users with flexibility and access to multiple ecosystems within the DeFi space. Maverick Protocol ranks 3rd in the list of top DeFi projects on ZkSync Era for the above reasons.
Maverick Protocol presents a seamless token swap feature that empowers users to switch between a wide array of tokens with minimal price slippage. This functionality is designed to provide traders with a smooth and efficient trading experience. Currently, Maverick Protocol supports token swaps on two prominent blockchains: Ethereum and zkSync, ensuring accessibility and convenience for a broad user base.
The “Pools” feature allows users to engage with liquidity provision in a highly customizable manner. Users can select different modes, fee structures, and bin widths, offering them the opportunity to earn profits from transaction fees. This feature is designed to cater to the varying risk profiles and strategies of DeFi participants, making liquidity management more versatile and user-centric.
Maverick Protocol introduces “Boosted Positions,” a novel feature that enables liquidity pools to offer reward incentive campaigns, attracting users and enhancing overall liquidity. LPs (Liquidity Providers) gain greater control and flexibility when offering their assets within specific pools. Each Boosted Position is available in three liquidity modes: Left, Both, or Static. When an LP initiates a Boosted Position, other LPs can contribute liquidity to the same pool. The token rewards and transaction fees are then equitably distributed among all LPs participating in the pool. These incentives are particularly appealing to projects seeking to attract LPs and boost liquidity through Maverick Protocol’s Boosted Positions feature.
The “Stake MAV” feature allows users to stake MAV tokens, earning veMAV tokens that grant governance voting rights within the Maverick Protocol ecosystem. Users can create new stakes by specifying the amount of MAV tokens they want to stake and the duration of the stake. Staking more MAV tokens for extended periods results in a larger veMAV balance and offers greater influence in governance decisions. This feature ensures that the Maverick community plays an active role in shaping the protocol’s future and direction.
Velocore harnesses the power of the ve(3,3) fork mechanism, originally developed by Solidly, to enhance liquidity operations. Additionally, Velocore introduces the Protocol Owned Liquidity mechanism to further optimize liquidity-related profits.
Operating under the ve(3,3) model, Velocore has carved a niche for itself in the zkSync Era ecosystem, a testament to its commitment to innovation and user-centric solutions. The ve(3,3) model, initially introduced by Solidly, serves as a foundational liquidity mechanism, yet Velocore has gone a step further in improving and addressing limitations to provide users with enhanced efficiency and security.
One of the distinguishing features of Velocore is its application of the Protocol Owned Liquidity mechanism. This mechanism is designed to maximize profits stemming from liquidity operations. By integrating this feature, Velocore strives to offer liquidity providers a more profitable and sustainable experience, aligning with the broader goal of fostering a thriving DeFi ecosystem.
Velocore’s “Swap” feature is a powerful tool for traders, offering a seamless experience for swapping various trading pairs. What sets Velocore apart is the ability for users to customize slippage, allowing them to fine-tune transactions to suit their specific requirements. Moreover, users can actively monitor and control the price levels affected during the transaction process, giving them greater control over their trades.
The heart of Velocore lies in its “Liquidity Pools” feature. Users can contribute their assets to these pools and, in return, receive rewards in VC tokens. The more VC tokens users provide to a pool, the greater their potential rewards. This system incentivizes liquidity providers and allows them to actively participate in the DeFi ecosystem while enjoying rewards that scale with their contributions.
Velocore’s “Launchpad” feature stands as a supportive platform for projects seeking to raise capital from the community. It offers two primary fundraising mechanisms: Private sale and Public sale. This not only enables projects to secure funding but also provides early-stage investment opportunities to a broader community of investors. Velocore Launchpad bridges the gap between innovative projects and the DeFi community, fostering an ecosystem of growth and collaboration.
SpaceFi is the last name in the list of top DeFi projects on ZkSync Era. It is taking the world of DeFi by storm with its comprehensive platform that seamlessly integrates various DeFi products, making it easier for users to engage in DeFi transactions. This dynamic platform is currently operating on the Evmos blockchain and layer 2 zkSync, with plans for further development on other Ethereum Virtual Machine (EVM) chains, including Celo in the near future.
The SpaceFi platform serves as a Web3 cross-chain ecosystem, bridging the gap between different blockchain networks to offer users a unified and convenient DeFi experience. With a diverse range of products, including a DEX, non-fungible tokens (NFTs), a launchpad (Starter), and Spacebass, SpaceFi aims to cater to the evolving needs of the DeFi community.
SpaceFi boasts a decentralized exchange (DEX) operating on the Evmos blockchain and zkSync. Users can seamlessly swap tokens and provide liquidity within the SpaceFi DEX. This feature ensures convenient and secure token trading, enhancing the DeFi experience.
SpaceFi’s “Farming” feature enables users to maximize their returns. After providing liquidity to specific currency pairs on the DEX, users can utilize their LP tokens for farming. There are two types of pools available:
SpaceFi’s NFT system empowers users to engage from the inception by acquiring type 1 NFTs, which can then be used to mint type 2 and 3 NFTs, unlocking various benefits. This presents an exciting opportunity for users to participate in activities such as GameFi and SpaceDAO, where NFTs play a pivotal role.
SpaceFi’s “Starter” serves as a launchpad for projects within the ecosystem. Users can stake USDT, ETH, or LP Tokens of SPACE-USDC to secure an allocation for purchasing tokens from projects participating in the launchpad. This feature provides users with early access to promising projects, fostering a vibrant DeFi community.
“Spacebase” is the on-chain community hub of SpaceFi. Users can create rooms and invite friends to join, fostering community engagement. Both participants and creators within Spacebase receive an additional 5% reward from mining rewards, enhancing the incentive for active involvement in the SpaceFi community.
Holdstation DeFutures is a leading trading platform. The platform boasts a remarkable feature allowing traders to engage in leveraged trading with ratios scaling up to 500x. This exceptional leverage capability provides traders with a unique opportunity to maximize their potential profits by capitalizing on market movements across various assets.
The ethos of Holdstation revolves around making blockchain technology comprehensible and user-friendly for all traders. Through the platform, Holdstation aims to empower individuals to participate in the dynamic world of trading without the barriers of technical complexity.
Bid farewell to the complexities of seed phrases. Holdstation simplifies the onboarding process through the introduction of social login and seedless recovery options.
Holdstation addresses the challenge of needing Ethereum (ETH) for transactions by implementing Account Abstraction.
Holdstation DeFutures offers fee-free trading akin to traditional centralized exchanges, sparing users from the burden of gas fees. Moreover, the platform simplifies the referral process, allowing anyone to participate regardless of their wallet balance. Even users with empty wallets can register for referral programs, fostering inclusivity within the trading community.
To bolster asset security, Holdstation empowers users to set customized maximum transfer limits.
Derivio is a structured derivatives platform. The platform aims to revolutionize the landscape of derivatives trading by offering synthetic derivatives that provide granularized risk-adjusted rewards for traders, coupled with smart leverage. Additionally, Derivio aims to address the needs of cryptocurrency operators by providing sufficiently deep liquidity pools for effective hedging.
At the core of Derivio’s vision is the establishment of an inclusive ecosystem catering to traders of all levels of expertise. Through the platform, speculators can access a diverse range of derivatives and options, including perpetual futures, interest rate derivatives, and stablecoins – all of which represent first-order structured derivatives.
Derivio introduces perpetual futures, a groundbreaking offering that enables traders to open positions using any asset in the pool as collateral. With 13 tradable markets spanning basic, stablecoin, and exotic assets, Derivio’s perpetual futures market provides traders with unparalleled flexibility and opportunity.
Digital options represent a straightforward yet powerful tool for traders, allowing them to speculate on whether the price of an asset will exceed or fall below a predetermined level within a specified timeframe. Derivio’s digital options platform supports trading on a wide range of commodities with reliable price feeds, ensuring accessibility and transparency for traders.
Derivio empowers liquidity providers to act as market makers in a highly capital-efficient environment, optimizing risk and maximizing returns. LPs play a crucial role in the Derivio ecosystem, sharing in the revenue generated from trading fees and profits (PnL). Derivio’s market-neutral liquidity mechanism offers protection to liquidity providers, ensuring a fair and balanced trading environment.
Liquidity providers on Derivio gain automatic ownership of a share in the market-neutral index, presenting a potential high-yield investment opportunity. While offering attractive yields from fees and market making, zero-coupon bonds and interest rate products enable liquidity providers to maintain control over their portfolios. However, it’s important to note that these investments also come with inherent risks.
Gravita Protocol is a decentralized borrowing protocol that allows users to collateralize Liquid Staking Tokens (LSTs) or yield-generating stablecoins of bLUSD to mint and borrow GRAI stablecoins at interest-free rates. Users can use GRAI to earn profits by providing liquidity on the protocol’s Stability Pool or other DeFi platforms.
At the core of Gravita Protocol lies the concept of Vessels, which function as containers for user collateral. Users deposit their collateral, denominated in GRAI, into these Vessels, facilitating seamless interaction with the protocol.
The Collateral Ratio serves as a crucial metric within Gravita Protocol, representing the value of the collateral relative to the loan. It provides users with insights into the level of security their collateral provides against borrowed assets.
In contrast to the Collateral Ratio, the Loan-to-Value Ratio (LTV) showcases the value of the loan in relation to the collateral. This metric determines the maximum borrowing capacity available to users, offering transparency and clarity in the borrowing process.
The Stability Pool is the primary safeguard within Gravita Protocol, playing a pivotal role in maintaining system stability. It serves as the first line of defense, utilized to settle outstanding loans in the event of liquidated loan positions, ensuring the integrity and resilience of the ecosystem.
Gravita Protocol provides users with real-time visibility into the System Status, offering a comprehensive overview of the platform’s current state.
In just half a year, the zkSync Era ecosystem has achieved a Total Value Locked (TVL) exceeding $400 million and boasts nearly 2 million wallet addresses with over 20 million transactions. This achievement is a testament to zkSync Era’s dedication to promoting blockchain application development and enhancing transaction security within the Ethereum network.
zkSync Era’s innovative features and cutting-edge technology have significantly contributed to making Ethereum a more popular and practical blockchain platform for both users and application development projects. With its growth, zkSync Era is quickly distinguishing itself in the blockchain space, offering more extensive features compared to zkSync Lite.
One of the standout segments within the zkSync Era is the Automated Market Maker (AMM) and Decentralized Exchange (DEX) category, which includes exceptional projects like Mute.io, SyncSwap, and the emerging Velocore project. What’s noteworthy is that the majority of zkSync Era’s users gravitate towards DEXs, contributing to an impressive trading volume of nearly $100 million.
In addition to the bustling AMM/DEX scene, zkSync Era is also witnessing a surge in Bridge projects. Several initiatives encourage users to bridge via zkSync Era through their platforms, with notable examples being Orbiter Finance and Symbiosis.
A notable aspect of zkSync Era’s growth is the steady increase in trading volume over time, largely driven by the cryptocurrency community’s enthusiasm for Airdrop events. This enthusiasm has cemented zkSync Era’s position as a dynamic force within the blockchain landscape.
The article “Top 10 DeFi Projects On ZkSync Era” has presented a comprehensive overview of the most outstanding projects in the DeFi space that are taking full advantage of the ZkSync era. These projects are not only innovative but also have the potential to revolutionize the financial landscape.
The power of decentralization, coupled with the potential for scalability and efficiency offered by ZkSync, provides an exciting prospect for the future of finance. As we continue to monitor developments in this space, it is clear that the DeFi projects detailed in this article are at the forefront of this new era, leading the way in showcasing the vast potential of decentralized finance.
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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