Top 5 DeFi Projects On StarkNet
Although the ecosystem is still new, Starknet has attracted a large number of development projects. Today, let’s join Coincu to learn about top 5 DeFi projects on StarkNet.
What is StarkNet?
StarkNet is a Layer 2 solution using ZK Rollup technology built and developed on Ethereum. Developed by StarkWare, a renowned Israeli software development company specializing in cryptographic proof systems, StarkNet introduces a transformative approach that brings scalability and security enhancements to the Ethereum ecosystem.
At its core, StarkNet operates as a decentralized network, offering a solution to one of the most pressing challenges in the blockchain space – scalability. This technology not only enables dApps to run and expand without limits but also ensures that Ethereum’s composability and security remain unharmed.
One of the standout features of StarkNet is its utilization of the STARK system. This technology, developed by StarkWare, forms the foundation of StarkNet’s capabilities. It empowers dApps to operate without restrictions, making it possible to deploy and scale use cases across the blockchain. Moreover, StarkNet’s unique edge lies in its support for the Cairo programming language, which is used to write contracts and operating systems. This support allows for flexibility in deployment and scaling, without being constrained by specific business logic.
The collaboration between StarkWare and Polygon, a well-known blockchain network, has further amplified the reach and potential of StarkNet. The partnership with Immutable X has paved the way for StarkWare to join the Polygon blockchain, opening up new avenues for innovation and interoperability.
Since its launch on the Ethereum Mainnet in June 2020, StarkNet has been making waves by settling over 50 million transactions on Ethereum’s private and public testnets before its official Mainnet release. This significant achievement underscores the project’s commitment to providing a groundbreaking Layer 2 (L2) solution that not only enables decentralized applications (dApps) to operate at scale but also upholds the security of the Ethereum network.
StarkWare’s contribution to the blockchain space doesn’t stop with StarkNet; they have developed a suite of cutting-edge products and technologies. Among these, the Cairo programming language, SHARP, VeeDo, StarkEx, StarkGate, and StarkNet stand out. These tools collectively advance the Ethereum ecosystem by enhancing its performance and security.
What sets ZK-Rollups apart from other L2 technologies, such as Optimistic Rollups, is its optimized transaction validation process and faster execution time. This makes ZK Rollup the preferred choice for long-term scalability on the Ethereum network. In contrast, Optimistic Rollups are considered suitable for the short term. This assessment solidifies ZK Rollup’s position as the leading scaling solution on Ethereum, further cementing StarkNet’s importance in the Ethereum landscape.
The StarkNet ecosystem is a testament to its diversity and inclusivity, attracting a vast community of developers who are actively engaged in building applications across various domains. StarkNet’s unique aggregation capabilities further enhance its appeal.
These capabilities allow projects on the Ethereum network to seamlessly interact and connect with one another. This collaborative approach ensures that the Ethereum ecosystem remains a hub of innovation, fostering a thriving environment for dApps and blockchain projects.
Top 5 DeFi projects on StarkNet
Jediswap is the first name in the list of top 5 DeFi projects on StarkNet. Jediswap has unveiled the first Automated Market Maker (AMM) built on the StarkNet ecosystem. This innovation leverages zk-rollup technology as part of Ethereum’s Layer 2 scaling solution. The result is a cutting-edge platform that not only offers users zero transaction costs but also ensures instant transaction speed.
What sets Jediswap apart is its integration of zk-rollup technology, which empowers users to conduct transactions with minimal associated costs, while simultaneously inheriting the robust security features of the Ethereum blockchain. This project is the brainchild of Mesh Community, a dedicated supporter of advancements in the blockchain space.
Jediswap takes its place as one of the pioneering AMMs within the StarkNet ecosystem, delivering a user experience that combines the benefits of Zk-rollups technology and the unmatched security of Ethereum. Users will be able to seamlessly swap tokens and perform various transactions while incurring almost negligible costs, all while enjoying the ironclad security of the Ethereum network.
One of the core principles behind Jediswap is its commitment to user autonomy. The platform ensures that users retain complete control over their assets, eliminating the need for intermediaries or third-party involvement in the management of their assets.
Jediswap offers a comprehensive suite of features expected from any AMM, including the ability to swap tokens, provide liquidity, and access the Sake protocol. These features come together to create a powerful DeFi platform that caters to the needs of both beginners and experienced traders, all while maintaining the advantages of StarkNet’s zk-rollup technology.
This DAO is envisioned as a multifaceted hub for various activities, including development, marketing, Discord support, and more. What sets it apart is the remarkable approach to recognizing and incentivizing contributions from both individuals and organizations.
Contributions to the Jediswap project within the Mesh Finance DAO are evaluated based on specific criteria such as the number of likes, followers, shares, and more. These contributions, once scored, will be converted into unique non-fungible tokens (NFTs) that serve as a testament to the contributions made by individuals or organizations. This novel system positions contributors within the broader ecosystem, providing recognition and a tangible representation of their involvement.
The Mesh Finance DAO, thus, emerges as a key enabler in fostering community engagement and rewarding active participation within the Jediswap project.
Unlike traditional AMM projects, where liquidity providers are required to deposit two different types of tokens at a 1:1 ratio, Jediswap simplifies this process dramatically.
With Jediswap’s ZAP feature, liquidity providers only need to deposit a single type of asset, and the platform takes care of the rest. This unique functionality automates the conversion of a single asset into two types of tokens, which are then seamlessly supplied to the liquidity pool.
The introduction of the ZAP feature represents an easy and convenient way for users to participate in liquidity provision within the Jediswap ecosystem. By reducing the complexity and minimizing the steps required, Jediswap aims to make liquidity provision accessible to a broader range of users, including those new to DeFi.
mySwap is a DEX AMM platform developed on the StarkNet blockchain. This DEX is currently ranked top TVL on the StarkNet network. mySwap is also one of the DeFi projects on StarkNet with great potential in the future.
One of mySwap’s standout features is its Swap functionality, which enables users to seamlessly exchange assets on the platform. Presently, mySwap supports a diverse range of tokens, including ETH, DAI, USDC, WBTC, wstETH, and LORDS. This selection provides users with a wide array of options for trading, ensuring access to popular assets and emerging tokens within the DeFi space.
In addition to the Swap feature, mySwap introduces the concept of liquidity pools, which offers an exciting opportunity for users. By providing liquidity to these pools, users can earn transaction fees. This feature aligns with the broader DeFi movement of democratizing finance, allowing users to actively participate in the ecosystem and benefit from their contributions.
For those who value data and insights, mySwap has introduced the mySwap Analytics section. This statistics hub offers crucial data related to Total Value Locked (TVL) parameters and trading volume on the platform. Users can gain a deeper understanding of the performance and dynamics of mySwap, allowing for more informed decision-making when it comes to participating in the DeFi ecosystem.
ZkLend is the best lending platform so it deserves to be one of the DeFi projects on StarkNet. ZkLend’s innovative approach to the DeFi landscape offers parallel money market access solutions catering to two distinct customer profiles:
Institutional Customers: The Apollo Project
zkLend serves as a sophisticated financial platform tailored to the needs of institutional customers. The Apollo Project, one of its flagship initiatives, represents a leap forward in providing advanced financial solutions to the institutional sector. This strategic focus aims to address the unique requirements and complexities faced by large financial institutions, offering them an array of cutting-edge services within the zkLend ecosystem.
Retail Users: The Artemis Project
For retail users and individual DeFi enthusiasts, zkLend introduces the Artemis Project. This segment of the platform is designed to deliver user-friendly and accessible services to the broader public. DeFi User: Artemis Project brings the power of decentralized finance to retail customers, empowering them with the tools and opportunities available within the zkLend ecosystem.
ZK Rollup technology
At the core of zkLend’s infrastructure is StarkNet, a robust and scalable solution built on zero-knowledge proof technology, specifically zkRollups. This technological foundation empowers zkLend with remarkable advantages, most notably fast transaction speeds and low transaction fees.
StarkNet’s zkRollup technology allows zkLend to process transactions swiftly while maintaining the highest levels of security. Users can expect an efficient and cost-effective experience, eliminating the common bottlenecks associated with blockchain networks. This combination of speed and affordability will undoubtedly attract users from both DeFi and CeFi sectors, looking for a more efficient lending platform.
Two Protocols, Two Markets: DeFi and CeFi
zkLend recognizes that the needs of DeFi and CeFi markets are distinct. To address these differences, zkLend introduces two lending protocols tailored to serve each sector effectively. The two protocols will initially operate independently, allowing zkLend to focus on meeting the unique requirements of DeFi and institutional-scale CeFi participants.
For DeFi enthusiasts, zkLend offers a protocol optimized for the specific demands of this dynamic market. DeFi users will benefit from the flexibility and decentralization they expect while enjoying the advantages of StarkNet’s technology, such as quick transactions and minimal fees.
Merging for Increased Liquidity and Capital Efficiency
While the two protocols will operate independently to cater to the different market segments, zkLend has a long-term vision of merging them. This merger will allow for a seamless transfer of assets between DeFi and CeFi, fostering greater liquidity and capital efficiency.
Starknet is the ideal foundation for Ekubo Protocol, which aspires to not only revolutionize the AMM (Automated Market Maker) space but also foster liquidity growth across the DeFi ecosystem. Ekubo takes a unique approach by prioritizing liquidity building, rather than offering a direct exchange interface to users.
The standout feature of Ekubo is its role as a liquidity hub for other decentralized exchanges (DEXs). By doing so, it enables seamless integration with Ekubo, allowing DEX platforms to tap into its substantial liquidity reserves and utilize its price feeds for their transactions. This innovative approach helps DEXs expand their liquidity pools, improve trading efficiency, and offer users more competitive pricing.
One key advantage of Ekubo’s centralized liquidity model is its ability to aggregate liquidity from various sources, enhancing the depth and breadth of the pool. This approach not only benefits users by reducing slippage but also assists DEX platforms in achieving better trade execution, ultimately creating a win-win scenario for the entire DeFi community.
Furthermore, the Ekubo Protocol aims to uphold a commitment to user-centric values, providing a trading environment that offers the best possible experience while keeping fees as low as possible. By embracing Starknet’s capabilities, Ekubo can provide efficient, secure, and cost-effective transactions for users, solidifying its position as a game-changer in the DeFi landscape. Although Ekubo Protocol is still unfamiliar to users, it deserves to be one of the DeFi projects on StarkNet that deserves attention.
Gas Fee Optimization
Ekubo Protocol implements a unique concept known as the “till pattern” to streamline and optimize gas fees. The practical implication of this approach is that users are only required to pay a single fee when they execute asset swaps or make updates to their positions on Ekubo. By doing so, Ekubo Protocol effectively reduces transaction costs, offering users a more economical and efficient trading experience.
One of the standout features of Ekubo is its commitment to centralized liquidity, which stands in contrast to traditional liquidity pools that disperse liquidity providers across the entire price curve. In the Ekubo model, liquidity providers have the flexibility to concentrate their liquidity within specific price ranges.
Ekubo Protocol goes even further in fostering innovation within the DeFi ecosystem by introducing an extension feature. This feature empowers third-party developers to create new types of liquidity pools on the Ekubo platform without the need for licensing. These pools seamlessly integrate into the existing ecosystem of aggregators and interfaces built on Ekubo.
StarkEx is a STARK-powered Ethereum scaling solution for cryptocurrency exchanges developed by StarkWare. This innovative platform leverages cryptographic proofs to verify the validity of a sequence of transactions, including transfers and more. Moreover, it updates the commitment to the exchange’s on-chain status, promising a game-changing approach to scaling Ethereum-based exchanges.
StarkEx distinguishes itself through its utilization of cryptographic proofs, specifically STARKs, to ensure the authenticity and accuracy of transactions and transfers. By employing these cutting-edge proofs, StarkEx can provide a high level of security and trust within the system, an essential factor in the world of cryptocurrency.
As an Ethereum scaling solution, StarkEx addresses the fundamental challenge of network congestion and scalability. It achieves this by efficiently bundling transactions and leveraging cryptographic proofs. In doing so, StarkEx offers a scalable infrastructure for cryptocurrency exchanges, enabling them to handle a larger volume of transactions while maintaining a high degree of security.
A notable aspect of StarkEx is its ability to facilitate uncustodial trading at scale. This approach deviates from the traditional model of exchanges that require users to deposit funds with the platform. With StarkEx, users retain control of their assets, reducing counterparty risk and enhancing the overall security of the trading process.
High Liquidity and Low Costs
StarkEx’s innovative design paves the way for exchanges to provide users with an unprecedented level of liquidity while keeping transaction costs at a minimum. The platform’s scalability and efficiency translate into a smoother trading experience, as users can access a vast pool of assets with reduced costs and improved price stability.
Self-Custody for Users
One of StarkEx’s standout features is the empowerment of applications and their users with self-custody. This means that users always retain control over their funds.
Versatile Data Availability
StarkEx has been meticulously developed to cater to the diverse needs of users and applications. Whether you’re a DeFi platform, NFT marketplace, or any other blockchain-based service, StarkEx offers the flexibility and adaptability required to meet specific use cases.
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