zkSync is Matter Labs’ first product based on the Zk Rollups architecture, acting as Layer 2 of Ethereum. Today, let’s join Coincu to learn about the top 5 DeFi projects on ZkSync Era through this article.
What is 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.
DeFi’s impact on the ZkSync Era ecosystem
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.
Top 5 DeFi Projects On ZkSync Era
- SyncSwap
- Mute.io
- Maverick Protocol
- Velocore
- SpaceFi
SyncSwap
Overview
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.
Features
Multi-Pool and Concentrated Pool
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.
Smart Router
SyncSwap’s AMM employs a Multi-pool-based Smart Router mechanism, allowing users to swap tokens and optimize exchange rates while trading.
Portfolio
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.
Loyalty Fee Program
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.
Launchpad
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.
Mute.io
Overview
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.
Features
Mute Switch AMM
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
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.
Farming on Mute
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.
Unlocking the Mute DAO
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.
Mute Amplifier
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.
Maverick Protocol
Overview
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.
Features
Swap
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.
Pools
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.
Boosted Positions
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.
Stake MAV
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
Overview
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.
Features
Swap
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.
Liquidity Pools
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.
Launchpad
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
Overview
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.
Features
DEX
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.
Farming
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:
- Single Pool: Users can stake xSPACE tokens to earn greater profits.
- LP Pool: This option allows users to stake LP Tokens, providing them with attractive Annual Percentage Rates (APR). The LP Pool currently includes three primary pairs: ETH-USDC, SPACE-USDC, and SPACE-ETH.
- NFT Pool: This pool is designed for staking SpaceFi’s NFTs, offering increased APR in Pool tokens. It’s an enticing option for NFT enthusiasts.
NFT System
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.
Starter
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
“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.
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.
Source: https://coincu.com/225995-defi-projects-on-zksync-era/