Report on the Development of the Zksync Ecosystem Two Months after Mainnet Launch

Zksync Ecosystem Development Report Two Months Post Mainnet Launch

zkSync is an Ethereum layer-2 scaling solution based on the ZK Rollups architecture. It launched its mainnet, Fair Onboarding Alpha, on February 16, 2023, which only allowed registered projects to test and was not open to end-users. On March 24, 2023, the zkSync Era mainnet was opened to everyone, and zkSync 2.0 was renamed zkSync Era, while zkSync 1.0 was renamed zkSync Lite.

So, how has the network ecosystem of zkSync developed in the two months since its launch? Let’s take a look.

1. TVL

The TVL of zkSync Era maintained stable growth for the first three weeks before launch, then growth stagnated after mid-April and has since recovered since mid-May. The current TVL is $283 million, with a growth of 9.5% in the past week. It accounts for 3.29% of the overall layer-2 TVL and ranks fourth.

2. On-chain activity

According to browser data, since the launch of zkSync Era, it has processed about 21 million on-chain transactions and has 1.7 million unique addresses. Due to the impact of the Arbitrum airdrop, zkSync gained high on-chain activity at launch, with a fluctuation range of about 60-80k daily active addresses in the early days, dropping to a low of about 30k in early May, and then rising sharply due to activities and airdrops.

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On May 11th, OKX Wallet launched a one-stop DApp exploration and airdrop interaction platform Cryptopedia, with zkSync Era as the theme for the first phase of the launch and a zkSync Era interaction zone. Users who complete the interaction tasks can not only potentially receive airdrop rewards but also draw one of five NFTs of different rarity jointly designed by OKX Wallet and zkSync. As a result, the on-chain activity of zkSync Era increased significantly. OKX also opened the deposit and withdrawal of zkSync Era mainnet assets on May 20th.

The zkApes metaverse project on zkSync Era launched a $ZAT airdrop on May 10th and subsequently shortened the time for receiving the airdrop to one week. Before the airdrop deadline of May 17th, the on-chain activity of zkSync Era hit a new high. On the day the airdrop ended, the number of $ZAT holders was 655,000, surpassing USDC to become the token with the second most holders on zkSync Era, ranking behind ETH.

On May 21st, ERA Name Service, the zkSync ERA domain platform, also conducted an ERA token airdrop, with a total of 43,500 addresses participating.

3. Cross-chain Fund Situation

The official bridge’s data also shows similar activity. Stimulated by the Arbitrum airdrop, the number of active addresses increased significantly in the three weeks before the mainnet went live, but decreased from mid-to-late April to early May. After mid-May, the data resumed its growth, with active addresses increasing.

4. Ecological Projects

According to Defillama statistics, the top five TVLs in the ZKSync ERA ecosystem are all decentralized exchanges.

SyncSwap has trading, liquidity mining, and launchBlockingd (not yet started) features, with 85% of TVL concentrated in the USDC/ETH Pool, with an APR of 25%.

Syncswap plans to issue 100 million platform tokens SYNC (not yet online), and on April 10th, it launched the trading mining activity “SyncSwap Loyalty Program,” with a total of 900,000 SYNC tokens allocated for the genesis epoch, which lasted for 30 days and ended on May 10th.

For every $1 transaction fee generated by users, they can receive 1 ySYNC, with a total of 1.18M ySYNC minted by users during the genesis epoch (i.e., a total of $1.18m in transaction fees generated), and 900,000 SYNC tokens will be distributed based on the average ySYNC holdings. Each ySYNC can ultimately receive approximately 0.76 SYNC tokens. The activity is currently in a suspended state after the genesis epoch.

iZUMi Finance is a multi-chain one-stop Liquidity as a Service (LaaS) protocol that currently supports four chains: ETH, Arbitrum, Polygon, and ZKSync ERA.

iZiswap uses an innovative Discretized Liquidity AMM (DL-AMM) mechanism similar to Trader Joe’s liquidity book mechanism, which was released earlier but did not receive the same widespread discussion as liquidity book. DL-AMM further improves capital efficiency by allocating liquidity at certain fixed prices. At the same time, iZiswap Pro also provides order book trading.

LiquidBox is a liquidity mining program based on Uniswap V3 LP by iZUMi. The project can set incentives for LPs within a specific value range through LiquidBox, and users can receive corresponding incentives by staking V3 LP tokens in the iZUMi protocol.

The related data of the protocol in defilama is quite different from that on its official website. The following figure shows the situation of TVL and trading volume displayed on the official website.

The platform token IZI was launched in December 2021 and has been listed on exchanges such as Bybit, KuCoin, and Gate. After experiencing a long period of decline, it rebounded significantly after the launch on zksync in April of this year.

Mute is the first batch of DEXs on zkSync Era. In addition to trading and providing liquidity, Mute also launched yield amplifier Amplifier, bonds, and DAO governance functions. Users can use MUTE/ETH LP to purchase MUTE tokens with a discount and a 7-day lock-up period. MUTE Token has been listed on Bitget, and the token price surged when it was launched on the zkync era mainnet, and then basically continued the trend of oscillating decline. The current main TVL is concentrated in the USDC/ETH Pool, with an APR of 28%.

Velocore is the first ve (3,3) DEX built on Solidly and Velodrome on zksync era. It conducted private sales and public sales on its own launchBlockingd platform on April 3rd and 4th, 2023. The private sale hard cap was 90 ETH, and the public sale hard cap was 450 ETH. They achieved more than 500% and 1814% oversubscription, respectively, with raised prices of 0.0000207 ETH and 0.0000229 ETH, equivalent to about $0.037/$0.041. The price rose to about 6 times at most and is currently maintained at about 2 times the profit.

SBlockingceFi is a cross-chain platform connecting the Cosmos and Ethereum Layer2 ecosystems. It currently integrates Evmos and ZkSync, and its products include DEX+NFT+LaunchBlockingd+SBlockingcebase. SBlockingcebase is an on-chain community, and creating and joining SBlockingcebase can increase mining rewards. Currently, 18 sBlockingcebases have been created, and about 30,000 people have joined sBlockingce. On May 6th, SBlockingcefi adjusted the economic model of its platform token SBlockingCE, reducing its maximum supply from 600m to 100m and burning 40M Initial Supply. Currently, the circulating market value of SBlockingce is only $780,000, and the trading volume is also relatively low.

Zigzag is a decentralized order book exchange that is the first dex on zkSync 1.0, currently supporting zksync lite and arbitrum. On March 3, 2023, over 100,000 users received the platform token $zz airdrop, which accounted for 34% of the total token supply. The Zigzag team also developed the decentralized betting platform zkasico, which includes bet tokens such as USDC, USDT, ZZ, and ETH.

Nexon was the first lending protocol to go live on zkSync Era and has now been renamed Eralend. From the disclosed token model, 61% will be used for community incentives, 10% for IDO, 15% allocated to DAO, 12% allocated to the team, and 2% allocated to advisors, with a 6-month lockup period for the team and advisor portion. Due to the delay in token launch and the diversion of activity to other protocols, Eralend’s TVL growth is currently slow, at only around $2.5 million.

Reactor Fusion is currently the largest lending protocol on zkSync Era in terms of TVL and is one of the few projects that have issued tokens on zkSync. Its TVL is around $3.43 million and currently supports only ETH and USDC assets.

UniDex is a derivative DEX protocol founded in April 2022, initially on the Fantom network, and later expanded to other public chains and layer 2s such as Optimism and zkSync Era. Currently, the TVL is $3.87 million, with the TVL on zkSync Era accounting for approximately $1.6 million.

Onchain Trade is a spot and derivative DEX protocol built on zkSync Era, with a current TVL of $670,000, which is relatively small. Its token is OT, which was issued through an IFO in March 2023 at a public offering price of $0.15. After going live, it surged to nearly $1 before falling back to around $0.18.

Cheems is a meme project on zkSync Era. From May 4 to 6, holders with wallet balances greater than 0.01 ETH or $PEPE or $AIDOGE on zkSync Era could claim $Cheems tokens. A total of 65,000 addresses participated in the claim, with the current number of holding addresses being 51,000, and a circulating market value of $27 million. The current price is still significantly higher than the opening price.

References:

https://l2beat.com/scaling/tvl

https://app.artemis.xyz/dashboard/zksync

https://zksync2-mainnet.zkscan.io/

https://www.okx.com/cn/help-center/okx-wallet-launches-cryptopedia-a-one-stop-dapp-exploration-and-airdrop

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