zkSync Era has been online for over two months, with a total value locked (TVL) of over $160 million, which is double what it was two months ago.
By Peng SUN, Foresight News
Originally published on June 9th, 2023
Since the launch of the zkSync Era mainnet on March 24th, the total value locked (TVL) on the zkSync Era mainnet has surpassed $160 million, which is double what it was two months ago. Currently, in addition to some zkSync-native protocols, DeFi protocols in other ecosystems have also begun to support the zkSync Era mainnet. At the same time, due to the high expectations for the zkSync airdrop resulting from the Arbitrum airdrop, more and more users are participating in the zkSync ecosystem.
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Currently, the top ten projects ranked by TVL on zkSync Era are SyncSwap, iZiSwap, Mute.io, Velocore, SBlockingceFi, EraLend, veSync, ReactorFusion, Maverick Protocol, and Overnight USD+. Of these, 7 are DEX protocols, 2 are lending protocols, and 1 is a stablecoin protocol, with SyncSwap in the lead, which I will briefly introduce below.
SyncSwap
SyncSwap is the largest DEX on zkSync Era, launched on March 25th. After more than two months, the total value locked (TVL) has reached $67.42 million, accounting for 41.89% of the zkSync Era TVL. In the past 7 days, it has increased by 12.52%. SyncSwap supports trading and adding liquidity, with funds mainly concentrated in the USDC/ETH pool, with a TVL of $57.77 million. Currently, SyncSwap also supports the zkSync Era testnet, the Scroll Alpha testnet, and the Polygon zkEVM testnet, and users can apply for ETH test coins on its website.
Recently, SyncSwap launched the cross-chain bridge Move based on the zkSync Era official bridge, which allows transfer between Ethereum and zkSync Era, supporting multiple assets such as USDC, ETH, USDT, WBTC, LUSD, LSD, and MUTE. In fact, Move can be understood as a third-party frontend of the zkSync Era official bridge, with the same gas cost as the zkSync official bridge, bridging tokens are 100% zkSync-native assets, with no third-party risk. When users approve or transfer using Move, they interact directly with the official zkSync smart contract.
In addition, on April 6th, SyncSwap announced on Twitter that it will launch a token called SYNC, which has not been created yet.
iZiSwap
iZiSwap is a chain order book DEX launched on the zkSync Era by iZUMi Finance, a one-stop liquidity-as-a-service DeFi protocol. It was launched on the zkSync Era mainnet on April 16th. Currently, iZiSwap has a TVL of $26.74 million on zkSync Era and ranks second.
iZiSwap uses iZUMi’s Discrete Liquidity AMM (DL-AMM), which is similar to Uniswap V3’s concentrated liquidity. DL-AMM can allocate liquidity to any fixed price, improving capital efficiency. Users can earn incentives by staking DL-AMM LP tokens in the iZUMi protocol. Currently, iZiSwap has launched liquidity incentives on zkSync Era, supporting seven liquidity pools: WETH/RF, WETH/ZKSP, USDC/DEXTF, SAPCE/WETH, LSD/WETH, USDC/BLADE, and USDC/OT.
Mute.io
Mute.io is a zkRollup-based DEX on Ethereum and zkSync Era, including limit orders, staking platforms, and bond platforms. It was launched on zkSync 2.0 Goerli testnet in July last year and on zkSync Era mainnet on March 24th this year. Mute.io has a TVL of $19.41 million on zkSync Era and ranks third, with a growth rate of 13.08% in the past seven days.
Mute.io’s native token is MUTE, with a total market value of approximately $24.71 million. The platform has supported wallets, trading, LP pools, Amplifiers, bonds, and DAO governance functions, allowing trading and liquidity provision for assets such as ETH, USDC, MUTE, WISP, ZKINA, MVX, IDO, WETH, USD+, ZKDOGE, DOF, BOLT, and ZKFLOKI. After providing liquidity in the LP pool, users can obtain LP tokens and stake them in Amplifiers to earn profits. Bonds are a Mute innovation, allowing users to purchase MUTE from Mute DAO at a lower price (bond) using their LP tokens. After buying a bond, MUTE will be released after seven days, and if the ROI is positive, users can earn more MUTE than LP tokens. Through bonds, Mute DAO can increase the liquidity owned by the protocol, increase treasury revenue, and increase the protocol’s long-term liquidity. dMUTE is the DAO token of the Mute.io ecosystem. Users need to lock MUTE for 7 to 364 days to receive dMUTE as a reward. After the lock-up period, users can redeem MUTE. Currently, the total locked amount for Mute DAO is 7,150,707.74 MUTE.
Velocore
Velocore is the first ve(3,3) DEX on zkSync Era built on top of the Velodrome Finance and Solidly codebases. Velocore has a TVL of $13.35 million on zkSync Era, ranking fourth, with a 7-day decline of 14.2%.
Velocore’s core function is to allow users to trade digital assets at low cost and low slippage. Users can add liquidity to LP pools (divided into Stable Pool and Volatile Pool) and receive VC token incentives using LP tokens. VC is the native token of Velocore, and VC holders can vote to delegate tokens and exchange governance tokens veVC (ve NFT), which can be transferred, merged, and split. The lock-up period for VC can be up to 4 years, and the longer the release time, the higher the voting weight and rewards obtained by veVC holders. veVC holders can also receive protocol fees, bribes, and kickbacks. Bribes can be used to encourage other users to vote for LP pool rewards. Velocore also has LaunchBlockingd and has launched memecoin WAIFU.
SBlockingceFi
SBlockingceFi is a cross-chain Web3.0 platform with products including DEX, NFT, Starter, SBlockingcebase, and new products such as Game and Social Network. SBlockingceFi went live on the zkSync Era mainnet on March 24 and will be the first to connect Evmos in Cosmos to zkSync in Ethereum. SBlockingceFi will also be deployed on other EVMs such as Celo in the future. SBlockingceFi has a TVL of $7 million on zkSync Era, ranking fifth, with a 7-day increase of 13.26%.
SBlockingceFi’s native token is SBlockingCE. The community plans to reduce the maximum supply of SBlockingCE from 600 million to 100 million at the beginning of May and destroy 40 million initial supplies. Currently, the total market value of SBlockingCE is about $1.47 million. xSBlockingCE is a governance token that can be obtained through farming or redemption. SBlockingceFi supports trading and liquidity provision with ETH, USDC, SBlockingCE, and WETH tokens. Users can participate in mining by staking single coins such as xSBlockingCE or LP tokens such as SBlockingCE-USDC in the SBlockingce farm and receive xSBlockingCE rewards. Starter is SBlockingce’s incubation and fundraising platform, and users can pledge USDT, ETH, or LP tokens such as SBlockingCE-USDC to obtain shares of project tokens at the initial offering price. SBlockingcebase is SBlockingce’s on-chain community, and users can earn more mining rewards by creating or joining SBlockingcebase. Planet NFT is minted by SBlockingCE tokens, and NFT holders can submit on-chain proposals. Both Planet NFT holders and xSBlockingCE holders can participate in governance voting.
EraLend
EraLend is a decentralized borrowing and lending protocol on zkSync Era, formerly known as Nexon Finance, aiming to maximize capital efficiency while minimizing risks associated with external liquidity and oracle dependencies. EraLend has a TVL of around $5 million on zkSync Era, with an increase of over 33% in the past 7 days.
When borrowing, EraLend allows users to earn variable interest rates on their cryptocurrency deposits based on the supply, demand, and smart contract-set interest rate model. These deposits provide borrowers with a liquidity pool and can also serve as collateral. Currently, the platform supports the USDC and ETH markets. Users receive IOU tokens (nTokens) after depositing. When borrowing, EraLend allows users to use their assets as collateral to obtain loans. Users can borrow funds by depositing collateral at a certain collateralization rate, which determines the amount of tokens that can be borrowed.
veSync
veSync is also a ve(3,3) DEX on zkSync Era, and a branch of Velodrome Finance. veSync has a TVL of approximately $4.85 million on zkSync Era, ranking seventh, with an increase of nearly 20% in the past 7 days.
The native token of veSync is VS, and the governance token is veVS (veNFT), which can be transferred, merged, and split. Using the ve(3,3) incentive model, token holders can vote to stake their tokens to receive veNFT, with longer vesting periods resulting in greater voting power and rewards. veSync’s liquidity pool is currently divided into Stable Pools and Volatile Pools, with trading fees ranging from 0.02% to 0.05%. In the future, veSync will launch Concentrated Pools, allowing users to customize the range of liquidity they provide. Users can select specific pools to participate in voting and receive bribes.
ReactorFusion
ReactorFusion is a decentralized, non-custodial peer-to-peer lending market on zkSync Era, using the codebase based on Compound Finance, which can be integrated with ve(3,3) DEX. Currently, ReactorFusion has a TVL of around $4.79 million on zkSync Era, with an increase of 9.67% in the past 7 days.
Compared to Compound Finance, ReactorFusion uses per-second compounding to reduce gas fees and increase predictability. ReactorFusion implements the collateral and reserve mechanism implemented by Compound Finance, supporting ETH and USDC as collateral. The collateral factor is the maximum value of the specific asset that users can borrow, currently 70% for ETH and 80% for USDC.
ReactorFusion’s native token is RF and can be traded on Velocore, with sRF as the staked token. ReactorFusion is not a simple fork of Sonne Finance or Mare Finance, but rather uses a unique bribe reward token economics combined with ve(3,3) DEX. Stakers can receive protocol revenue and VC (Velocore) rewards. Protocol revenue is generated by fees based on reserve factors for various pools, with higher-risk pool Chans having higher fees. In addition, ReactorFusion has a single RF staking pool that requires a 7-day wait to manually withdraw tokens.
Maverick Protocol
Maverick Protocol is a DeFi liquidity infrastructure aimed at providing liquidity markets for traders, liquidity providers, DAO funds, and developers, supported by Maverick AMM. Maverick Protocol announced the zkSync Era launch on April 18th, with TVL currently around $3.52 million and a 7-day increase of 12.01%.
Users can trade and provide liquidity on Maverick AMM. There are four different types of liquidity modes: Mode Right, Mode Left, Mode Both, and Mode Static. After selecting a mode, the AMM will automatically move its liquidity according to a set of specific rules to follow the price. Maverick Protocol allows LPs to open Boosted positions, using incentive rewards to attract liquidity precisely, and other users can add liquidity to Boosted positions to buy shares. LPs can earn income from trading fees and LP incentives.
In February 2022, Maverick Protocol completed an $8 million funding round led by Blockingntera Capital, with participation from Jump Crypto, Circle, SBlockingrtan Group, Gemini Frontier Fund, GoldenTree Asset Management, CMT Digital, and the Tron Foundation.
Overnight USD+
Overnight USD+ is a stablecoin protocol launched by the DeFi protocol Overnight, which focuses on delta-neutral strategies and is anchored to USDC at a 1:1 ratio. Profit can be earned through rebases every day and is now supported by zkSync Era. Products such as Overnight DAI+, USDT+, ETS (medium-risk), and Insurance (high-risk) do not yet support zkSync Era. Currently, Overnight USD+ has a TVL of approximately $2.11 million on zkSync Era, with a 7-day increase of 17.18%.
Users can use USDC to mint USD+ on the Overnight website, with a fee of 0.04%, and transfer it to the Overnight collateral pool to compensate for existing USD+ and accumulated but unpaid daily P&L. Overnight calculates Blockingyout once a day, with revenue paid out in the strategy and liquidity index adjusted based on the asset amount in the USD+ strategy.
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