Ecosystem ZK 101 ZK Hub
August 04, 2023

Top 10 DeFi projects zkSync

DeFi continues to push the boundaries of financial operations in the blockchain ecosystem, and the zkSync Era Mainnet has emerged as a critical player in this rapidly evolving space. In contrast to its Lite phase, when few DeFi applications found home on zkSync, the Mainnet era has witnessed a flourishing ecosystem.

As numerous projects make their debut, they offer users a promising chance to earn potential future retrodrops. This article provides an analytical breakdown of the top ten outstanding projects that have made a significant impact on zkSync.

Top 10 DeFi projects zkSync

1. zkSync Bridge

1. zkSync Bridge

The zkSync Bridge emerged as a key application immediately after the launch of the zkSync Era. Acting as a conduit for cross-chain transfers, it quickly positioned the blockchain among the top seven gas consumers on Ethereum.

The bridge essentially forms the foundation for interacting with the zkSync network, acting as a pivotal determinant for obtaining potential retrodrops from projects like Arbitrum. However, it’s crucial to note that owing to the massive transaction load, transfer times may vary significantly.

2. Syncswap

2. Syncswap

Syncswap, one of the first decentralized platforms on zkSync Era, offers extensive token exchange capabilities. It allows users to switch their assets into various tokens, including ETH, USDT, MATIC, BUSD, and BNB, among others. Besides, users can contribute their liquidity in the “Pool” section and reap passive income.

In March 2023, Syncswap launched its token, incentivizing user engagement through activities like token swapping and liquidity farming. The platform shows earned SYNC tokens in the “Rewards” section, encouraging higher transaction volume.

3. Mute

3. Mute

Mute, a decentralized exchange on zkSync, supports liquidity provision and automated market making. Notably, it provides access to tokens not available on other zkSync exchanges, such as WISP, zCULT, ZKRICE, among others.

Mute not only allows users to track their assets but also offers exceptional liquidity pool yields, with some pairs delivering over 40% annually. Furthermore, it has its token, integral to farming campaigns and the DAO mechanism, currently boasting a capitalization of $50 million.

Read more: Understanding ZK Rollups and Optimistic Rollups: Layer 2 Scaling Solutions for Ethereum

4. SpaseFI

SpaseFI, a multifaceted platform on zkSync Era, presents a blend of a DEX, NFT marketplace, Starter, and DAO. Token exchanges and liquidity provision remain two core activities that could potentially lead to retrodrops. Given the modest amount of locked funds, some farming programs yield a staggering 650% returns.

In its NFT marketplace, users can buy NFTs themed around planets and celestial objects. By locking native SPASE tokens in the xSPASE block, they can join the DAO and earn staking rewards.

5. Nexon Finance

Nexon Finance

Nexon Finance provides comprehensive cryptocurrency lending and borrowing services, enabling lenders to deposit their funds for earning interest. Currently, it supports interaction with ETH and USDC tokens, with a locked liquidity volume of $3.5 million.

The platform’s Loan-To-Value (LTV) ratio goes up to 80%, reflecting the proportion of funds lent relative to the locked collateral.

There’s more to Nexon Finance than just these features. The platform might also offer additional functions like:

  • Repayment Flexibility: Borrowers might have the ability to repay the loan anytime they wish, or there could be a minimum loan period.
  • Smart Contracts: Like many DeFi platforms, Nexon Finance probably utilizes smart contracts to automate the loan process. This means that loans are secured and managed by code, reducing the need for intermediaries and providing transparency.
  • Risk Management: Nexon Finance may have specific measures to manage the risk of price volatility of the cryptocurrencies involved. For instance, if the collateral value decreases significantly, a liquidation process might be triggered to protect the lenders’ interests.
  • Regulatory Compliance: Depending on the jurisdiction of its operation, Nexon Finance might need to comply with relevant financial regulations.

6. Maverick Protocol

At the forefront of DeFi innovation, the Maverick Protocol is reinventing the financial infrastructure through its groundbreaking Automated Market Maker (AMM). Designed to support the liquidity needs of traders, liquidity providers, DAO treasuries, and developers, Maverick ushers in an era of efficient and liquid markets.

The Maverick AMM capitalizes on the concept of liquidity concentration, which is automated to follow price movements. This automation translates to enhanced capital efficiency, leading to improved market liquidity. For traders, it means access to better prices, while liquidity providers enjoy increased fees. An additional benefit for liquidity providers is the elimination of high gas fees usually associated with adjusting positions in response to price changes.

In another disruptive move, Maverick allows liquidity providers to follow the price of an asset in a single direction. This is akin to making a bet on the price trajectory of a particular token, similar to single-sided liquidity strategies. This leaves the liquidity provider majorly or entirely exposed to a single asset in a pool.

The Maverick Protocol’s innovative approaches herald a seismic shift in how smart contracts handle liquidity. Representing the first Dynamic Distribution AMM, Maverick automates liquidity strategies that would traditionally require daily maintenance or metaprotocols.

Read more: A Beginner’s Guide to the zkSync Ecosystem

7. Velocore

7. Velocore

Built on the robust foundation of Velodrome, Velocore has carved a niche for itself as the first and optimal ve(3,3) DEX functioning across multiple chains. This cutting-edge platform promises users an ideal trading environment characterized by low fees and minimal slippage, while eliminating the need for protocols to inflate token rewards. The ultimate objective lies in fostering a symbiotic growth of the broader DeFi ecosystem.

Velocore effectively addresses the issues of incentive misalignment, a challenge originally resolved by Solidly’s ve(3,3) system for protocols such as Curve and SushiSwap. However, this solution was far from perfect, marked by numerous inefficiencies and loopholes.

As a game-changing solution, Velocore presents an innovative model of AMM, coupled with a free-flowing voting system via V2. This revolutionizes the trading experience, solving critical problems and streamlining processes, setting a new standard for Decentralized Exchanges.

8. Symbiosis

8. Symbiosis

Symbiosis is a trailblazing decentralized exchange that aggregates liquidity from multiple blockchains, regardless of whether they employ EVM technology. With Symbiosis, users can trade any token and seamlessly move their assets across different blockchains. The platform eliminates the need to worry about a token’s network or how to transfer funds between various blockchains. All cross-chain operations are streamlined into a single-click process, offering competitive exchange rates and transaction costs.

The Symbiosis protocol is meticulously designed to offer a frictionless cross-chain trading experience, abiding by these key principles:

  • Complete Decentralization: Symbiosis operates without a centralized authority, ensuring no single entity can disrupt its functionality or censor user access.
  • Interoperability: Symbiosis aims to establish a connection with every blockchain that attracts substantial market interest, striving to create a unified bridge across all blockchains.
  • Non-custodial: User funds are always secure, as no one – including the Symbiosis team – can access them.
  • Boundless Cross-chain Liquidity: The protocol targets an extensive range of token pairs across all blockchains, offering the best prices for swaps between any arbitrary token pair.

9. zkSwap Finance

9. zkSwap Finance

zkSwap Finance stands out as the premier DEX and the first Swap to Earn DeFi AMM within the zkSync Era ecosystem. It has introduced a unique incentive model that generously rewards both liquidity providers and traders, along with providing attractive retroactive rewards for early adopters.

Operating on zkSync Era, which is Layer 2 of Ethereum, zkSwap Finance offers a unique and engaging experience where every contribution to the project is appreciated and rewarded. The platform puts user-centric features at the forefront, focusing on sustainable growth of the entire ecosystem.

At its core, zkSwap Finance is more than just a DEX. It’s a DeFi project that recognizes and values the contributions of its users, whether they are liquidity providers, traders, or early supporters. It aims to create a fair and rewarding environment for all participants, pushing the boundaries of what’s possible in the DeFi space.

Read more: ZK-SNARKs vs ZK-STARKs: How Do ZK-Proofs Differ?

10. zkSync id

zkSync id

zkSync id aims to redefine the concept of digital identity by introducing a decentralized identity and login system that leverages the advantages of zk rollup to deliver secure, scalable, and efficient transactions.

Working in concert with the zkSync era, zkSync id presents an innovative platform where users can trade unique collectible IDs, adding a unique dimension of value to their digital identities. The platform is underpinned by the robust power of ZK rollups, enabling fast and secure transactions while significantly reducing the computational load on the Ethereum network.

As a result, zkSync id provides users with a seamless and efficient digital experience, complete with the inherent benefits of decentralization and transparency. With zkSync id, your digital identity isn’t just an abstract concept, it’s a tradable asset that can be valued, sold, and bought on our in-house marketplace.

Future Prospects and Risk Management

The zkSync Era ecosystem is a bustling arena teeming with innovative projects that continue to push the boundaries of decentralized finance. These projects, in conjunction with the robust and scalable zkSync Era network, offer tremendous potential for both individual users and the broader DeFi landscape.

Each of these projects offers unique solutions tailored to different aspects of the DeFi realm, from cross-chain bridges to decentralized exchanges, and from lending platforms to digital identity systems. They continue to contribute significantly to the burgeoning DeFi ecosystem, empowering users with decentralized, transparent, and efficient financial services.

As the zkSync Era ecosystem continues to grow and evolve, it is important for users to remain informed about these innovative projects and their developments. It’s also crucial to manage risks carefully while navigating the DeFi landscape, as the nature of the industry often involves high volatility and potential uncertainties.

FAQ

What is zkSync Era?

zkSync Era refers to the launch phase of zkSync Mainnet, a Layer 2 scaling solution based on zkRollup technology. This technology enhances the capabilities of Ethereum by increasing transaction speed and reducing transaction costs, while preserving a high level of security and decentralization.

What are the top DeFi projects on zkSync Era?

This article discusses some of the most promising projects operating on zkSync Era, including zkSync Bridge, Syncswap, Mute, SpaseFI, Nexon Finance, LayerGuard, Maverick Protocol, Velocore, Symbiosis, zkSwap Finance, and zkSync id.

What is a retrodrop?

A retrodrop is a form of airdrop where users receive tokens in retrospect for their past activities on a platform. Many DeFi projects on zkSync Era offer retrodrops to incentivize user engagement.

What risks are involved in participating in these DeFi projects?

While DeFi projects offer numerous benefits, they also come with potential risks including smart contract vulnerabilities, price volatility, and liquidity risks. Users are advised to conduct thorough research and exercise caution when participating in DeFi projects.

Can anyone interact with the zkSync Bridge?

Yes, anyone with a compatible Ethereum wallet can interact with the zkSync Bridge to make cross-chain transfers. However, due to the volume of transactions, transfers can take some time to complete.

Are these DeFi projects accessible to users worldwide?

While most DeFi projects strive to be accessible worldwide, accessibility may vary depending on local regulations. Users should verify whether their jurisdiction allows participation in DeFi projects.

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Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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