Overview of the zkSync ecosystem and future opportunities
zkSync is a layer-2 solution on Ethereum that is highly anticipated due to token airdrop rumors. Let's find out what components of this ecosystem are already being built!
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zkSync is a layer-2 solution that belongs to the zk-Rollups group on Ethereum and is developed by the Matter Labs team. The project is trusted and supported by many large investment funds when it has undergone 2 capital calls with a total amount of up to 150 million USD (with the participation of a16Z, OKEx, Crypto.com, Bybit, Consensys ...).
Recently, zkSync announced the important integration implementation of “validity proofs” that works on the zkSync 2.0 testnet and marks the final necessary completion before moving to the mainnet.
After Aptos, zkSync will also be a new and opportunistic ecosystem. In today's article, I will learn with you an overview of the zkSync ecosystem!
Currently, zkSync has more than 150 projects registered to deploy with Total Value Locked, reaching about 54 million USD. Personally, the cash flow focused at zkSync at the moment mainly comes from projects and retails with the goal of finding retroactive opportunities. In the future after the mainnet, the project may launch incentive packages to encourage and attract better cash flow.
Although there are 150 projects under development, because there is no mainnet, only a few of them have products and put into operation. Here are the prominent names that you can pay attention to experience or follow.
DEX (decentralized exchange)
Mute: As a project that has products and tokens on zkSync, the current transaction volume is about 950,000 USD. Not only allowing decentralized transactions, the project also has products such as Yield Farming, IDO…
Rubicon: also a decentralized exchange, the special feature of Rubicon is that it supports the order-book function that allows traders to more easily "surf". In addition, Rubicon also has a Bridge to transfer assets between zkSync and Ethereum. Currently, the project does not have a token.
MesProtocol: A decentralized exchange with order book. Mes is now available with currency pairs such as BTC, ETH, IMX and DOGE. Currently, the project does not have a token.
Trustless Finance: also a decentralized exchange on zkSync. Unlike Mute and Rubicon, Trustless is in the testnet stage, you can take advantage of the product. Besides, Trustless is also developing decentralized stablecoin HUE – this is Trustless's competitive advantage compared to the two previous projects. Of course, the project doesn't have a native token yet.
ZKEX: similar to Rubicon, ZKEX allows you to trade with charts and orderbooks similar to centralized exchanges. ZKEX is built on zkSync and StarkWare. Currently, the project is in the testnet phase, with no tokens yet.
Lending & Borrowing (borrowing and lending)
Taker: taker is introduced as a project to help users provide liquidity or lend through a variety of crypto assets, including NFT and metaverse assets. Currently, Taker is in the testnet phase, no token yet, you can take advantage of the experience.
Perpetual (future contract)
Increment Finance : similar to Perpetual Protocol or dYdX, Increment Finance allows you to "long short" with leverage on zkSync. In fact, this is quite a desirable product because the fee on zkSync is very cheap, the biggest barrier is users and liquidity as well as the competition of other exchanges. Increment Finance does not have a product yet, you can follow the project to join the testnet in the near future.
Phezzan : is also a derivatives exchange that you should take time to experience. Phezzan now has a testnet version
Other types of financial products
Vovo Finance : is a product that provides users with various Yield strategies through financial instruments. Depending on the strategy, you can provide money to different pools to receive profits. The product has been audited by ABDK, PeckShield and HashCloack. You can put a little money in to experience the product. Currently Vovo Finance does not have a token.
zkSpark : currently the project is in development and has not yet launched a product. I think you can follow this project after zkSync launches mainnet to have more investment opportunities or join quality IDOs.
Through a series of projects that I have just listed and analyzed above, perhaps you have realized that zkSync still has many incomplete pieces. Currently, the majority of DEXs and derivatives exchanges, largely due to the fact that zkSync optimizes good fees, is a fertile ground for this type of product to develop and attract users.
In the future, in order to attract cash flow and users, zkSync definitely needs to continue to develop products in Lending, Yield Farming, NFTs, GameFi… more.
As a new ecosystem, zkSync still has a lot of opportunities for you to experience, get retroactive or invest early.
Oct 24, 2022