Inventory of the top ten DeFi projects in the zkSync Era ecosystem TVL: SyncSwap accounts for more than 40%

Original author: Peng SUN, Foresight News
Since the launch of zkSync Era mainnet on March 24, the total locked-in amount of zkSync Era mainnet has exceeded 160 million US dollars, doubling from two months ago. At present, in addition to some zkSync native protocols, DeFi protocols in other ecosystems have also begun to support zkSync Era mainnet. At the same time, due to the previous Arbitrum airdrop, users have great expectations for zkSync airdrop, and more and more users are participating in the zkSync ecosystem.
Currently, the top ten TVL projects on zkSync Era are SyncSwap, iZiSwap, Mute.io, Velocore, SpaceFi, EraLend, veSync, ReactorFusion, Maverick Protocol and Overnight USD+. Among them, there are 7 DEX protocols, 2 lending protocols and 1 stablecoin protocol, and SyncSwap is the leader. I will briefly introduce it.
SyncSwap
SyncSwap is the largest DEX on zkSync Era. It was launched on March 25. After more than two months, the total locked-in volume has reached 67.42 million US dollars, accounting for 41.89% of zkSync Era TVL, and the increase in the past 7 days is 12.52%. SyncSwap supports trading and adding liquidity, etc. At present, funds are mainly concentrated in the USDC/ETH pool, with a TVL of 57.77 million US dollars. At present, SyncSwap also supports zkSync Era test network, Scroll Alpha test network, Polygon zkEVM test network, and users can claim ETH test coins on its website.
Recently, SyncSwap launched Move, a cross-chain bridge based on the zkSync Era official bridge, which allows transfers between Ethereum and zkSync Era, and supports multiple assets such as USDC, ETH, USDT, WBTC, LUSD, LSD, MUTE, etc. In fact, Move can be understood as a third-party front-end of the zkSync Era official bridge, with the same gas cost as the zkSync official bridge. The bridge token is 100% zkSync native asset, without third-party risk. When users approve or transfer with Move, they interact directly with the official zkSync smart contract.
In addition, SyncSwap tweeted on April 6 that it will launch the token SYNC, which has not yet been created.
ZiSwap
iZiSwap is an on-chain order book DEX launched by iZUMi Finance, a one-stop liquidity-as-a-service DeFi protocol, on zkSync Era. It was launched on the zkSync Era mainnet on April 16. iZiSwap currently ranks second on zkSync Era with a TVL of $26.74 million.
iZiSwap uses iZUMi's discrete liquidity AMM (DL-AMM), which is similar to Uniswap V3 centralized liquidity. DL-AMM can allocate liquidity at any fixed price to improve capital efficiency. Users can obtain incentives within the corresponding range by staking DL-AMM LP tokens to 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 modules such as limit orders, staking platforms, and bond platforms. It launched the zkSync 2.0 Goerli testnet in July last year and the zkSync Era mainnet on March 24 this year. Mute.io's TVL on zkSync Era is $19.41 million, ranking third, with an increase of 13.08% in the past 7 days.
The native token of Mute.io is MUTE, with a total market value of approximately $24.71 million. The platform already supports wallets, transactions, LP pools, Amplifiers, bonds, and DAO governance functions, allowing assets such as ETH, USDC, MUTE, WISP, ZKINA, MVX, IDO, WETH, USD+, ZKDOGE, DOF, BOLT, and ZKFLOKI to trade and provide liquidity. Users can obtain LP tokens after providing liquidity in the LP pool and pledge them into Amplifier to earn returns. Bonds are an innovation of Mute. Users can use their LP tokens to purchase MUTE from Mute DAO at a lower price (bonds). After buying a bond, MUTE will be released after 7 days. 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 income, and the long-term liquidity of the protocol. dMute is the DAO token of the Mute.io ecosystem. Users need to lock up MUTE for 7 to 364 days and receive dMUTE in return. After the lock-up period, users can redeem MUTE. Currently, the total locked amount of Mute DAO is 7,150,707.74 MUTE.
Velocore
Velocore is the first ve( 3, 3) DEX on zkSync Era, built on top of Velodrome Finance and Solidly codebase. Velocore ranks fourth on zkSync Era with a TVL of $13.35 million, down 14.2% in the past 7 days.
The core function of Velocore is to allow users to trade digital assets at low cost and low slippage. Users can add liquidity to the LP pool (divided into Stable Pool and Volatile Pool) and use LP tokens to obtain VC token incentives. VC is the native token of Velocore. VC holders can vote for custody tokens and exchange them for governance tokens veVC (veNFT). veVC can be transferred, merged and split. The VC lock-up period can be up to 4 years. The longer the release period, 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 a Launchpad and launched the memecoin WAIFU.
SpaceFi
SpaceFi is a cross-chain Web3.0 platform, with products including DEX, NFT, Starter, Spacebase, and new products such as Game and Social Network will be launched in the future. SpaceFi launched the zkSync Era mainnet on March 24, and will be the first to connect Evmos in Cosmos to zkSync in Ethereum. In the future, SpaceFi will also be deployed on other EVMs such as Celo. SpaceFi's TVL on zkSync Era is $7 million, ranking fifth, with an increase of 13.26% in the past 7 days.
SpaceFi's native token is SPACE. In early May, the community plans to reduce the maximum supply of SPACE from 600 million to 100 million, and destroy 40 million initial supply. Currently, the total market value of SPACE is about $1.47 million. xSPACE is a governance token that can be obtained through farms or exchanges. SpaceFi supports ETH, USDC, SPACE, and WETH tokens for trading and adding liquidity. Users can stake single currencies such as xSPACE and LP tokens such as SPACE-USDC in the Space farm to participate in mining and obtain xSPACE rewards. Starter is Space's incubation and fundraising platform. Users can use LP tokens such as USDT, ETH or SPACE-USDC to stake and obtain a share of project tokens at the initial offering price. Spacebase is Space's on-chain community. By creating or joining Spacebase, users can get more mining rewards. Planet NFT is minted by SPACE tokens. NFT holders can issue on-chain proposals. Both Planet NFT holders and xSPACE holders can participate in governance voting.
EraLend
EraLend is a decentralized lending protocol on zkSync Era, formerly known as Nexon Finance, which aims to maximize capital efficiency while minimizing the risks associated with relying on external liquidity and oracles. EraLend has a TVL of approximately $5 million on zkSync Era, an increase of more than 33% in the past 7 days.
When lending, Eralend allows users to earn variable interest rates on their cryptocurrency deposits based on supply, demand, and interest rate models set by smart contracts. These deposits provide a liquidity pool for borrowers and can also be used as collateral. The platform currently supports USDC and ETH markets. Users receive IOU tokens (nTokens) after making a deposit. When borrowing, Eralend allows users to use their assets as collateral to obtain a loan. Users can borrow funds by depositing collateral at a certain collateralization rate, which determines the number of tokens that can be borrowed.
veSync
veSync is also a ve( 3, 3) DEX on zkSync Era and a fork 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.
veSync's native token is VS, and its governance token is veVS (veNFT). veVS can be transferred, merged, and split. veSync uses the ve( 3, 3) incentive model, where token holders can vote to host their tokens to receive veNFTs, and longer vesting periods bring greater voting rights and rewards. veSync liquidity pools are currently divided into two types, Stable Pools and Volatile Pools, with transaction fees ranging from 0.02% to 0.05%. In the future, veSync will launch Concentrated Pools, allowing users to customize the range of liquidity provided. Users choose 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 a codebase based on Compound Finance and can be integrated with ve(3,3) DEX. Currently, ReactorFusion has a TVL of approximately $4.79 million on zkSync Era, with an increase of 9.67% in the past 7 days.
Compared with Compound Finance, ReactorFusion uses compound interest every second 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 that a user can borrow for a specific asset. Currently, the collateral factor for ETH is 70% and that for USDC is 80%.
ReactorFusion's native token is RF, which users can trade on Velocore, and the staking token is sRF. ReactorFusion is not a simple fork of Sonne Finance or Mare Finance, but adopts a unique bribe reward token economics, combined with ve(3,3) DEX, and stakers can obtain protocol income and VC (Velocore) rewards. Protocol income is generated through fees based on the reserve factors of various pools, and the higher the risk of the pool, the higher the fee of Chans. In addition, ReactorFusion has a single RF staking pool. If the stake is released, it takes 7 days to manually withdraw.
Maverick Protocol
Maverick Protocol is a DeFi liquidity infrastructure that aims to provide a liquidity market for traders, liquidity providers, DAO funds and developers, powered by Maverick AMM. Maverick Protocol announced the launch of zkSync Era on April 18, with a current TVL of approximately $3.52 million, an increase of 12.01% in the past 7 days.
Users can trade and provide liquidity on Maverick AMM. There are 4 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 to follow the price according to a set of specific rules. Maverick Protocol allows LPs to open Boosted positions and use incentive rewards to accurately attract liquidity. Other users can add liquidity to Boosted positions to purchase shares. LPs can earn income from transaction fees and LP incentives.
In February 2022, Maverick Protocol completed an $8 million financing round led by Pantera Capital, with participation from Jump Crypto, Circle, Spartan Group, Gemini Frontier Fund, GoldenTree Asset Management, CMT Digital and Tron Foundation.
Overnight USD+
Overnight USD+ is a stablecoin protocol launched by Overnight, a DeFi protocol focusing on delta neutral strategies, which is pegged to USDC at a 1:1 ratio. It can make profits through rebase every day and now supports 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, an increase of 17.18% in the past 7 days.
Users can mint USD+ using USDC on the Overnight website, with a handling fee of 0.04% and transfer it to the Overnight collateral pool to compensate for the daily gains and losses accumulated but not paid by existing USD+ holders. Overnight calculates payout once a day, and the income is distributed in the strategy, and then adjusts the liquidity index based on the amount of assets on the USD+ strategy.