zkSync $ZK (Deep research)
ZK is a project that develops zk-Rollup technology to scale Ethereum. zkSync Era allows transactions to be performed on the user side and then validated on the Ethereum blockchain using zk-SNARKs. This significantly reduces gas costs and increases network capacity.
zkSync supports EVM, making it compatible with existing Ethereum tools and infrastructure. This means developers can easily port their applications to zkSync Era without making significant code changes.
The zk-SNARKs cryptography provides a high level of privacy as it validates transactions without revealing transaction details. This makes zkSync Era attractive for those who want to maintain the confidentiality of their transactions.
Investors
zkSync Era, developed by Matter Labs, has attracted a significant amount of investment from various investors. Among them:
1. Andreessen Horowitz (a16z) - lead investor in the Series B and Series C funding rounds.
2. Blockchain Capital - co-lead investor in the Series C round.
3. Dragonfly - participated in the Series B and Series C rounds.
4. 1kx - investor in Series B rounds.
5. Placeholder - investor in the Series B rounds.
In total, Matter Labs has raised $458 million in investment, including $200 million to develop the zkSync Era ecosystem. Investors believe that zkSync Era has great potential to scale Ethereum using zk-Rollup technology.
A general list of investors is provided below
Ecosystem
The zkSync ecosystem includes several well-known projects that utilize zkSync's Layer 2 scaling solution to improve transaction efficiency and financial inclusion. Here are some of the projects you mentioned:
SyncSwap is a decentralized exchange (DEX) that runs exclusively on zkSync Era. It offers a convenient, cost-effective and secure DeFi experience based on zero-knowledge technology. SyncSwap recently launched its Paymaster on the zkSync Era mainnet, allowing users to pay for gasoline using a variety of tokens.
Tevaera is a multi-genre gaming platform built on zkSync Era and powered by the ZK stack. It aims to create a comprehensive gaming ecosystem that allows users to create and play games on the zkSync network.
Zeroland is a decentralized financial platform (DeFi) that offers a variety of services including crop growth, liquidity provisioning, and more. It utilizes zkSync's tier 2 scaling solution to provide faster and more accessible transactions.
Koi Finance is a DeFi platform that integrates with zkSync to provide seamless trade execution and more affordable transaction options. By integrating with zkSync, it is focused on maintaining high and sustainable returns.
ZKSwap is a decentralized exchange (DEX) powered by zkSync that offers fast and secure transactions with low fees. It has a user-friendly interface and supports various trading pairs.
zkMarkets: zkMarkets is a proprietary NFT trading platform on zkSync Era that allows users to buy, sell and trade NFTs on the zkSync network. It provides a secure and efficient platform for NFT enthusiasts.
These projects are just a few examples of zkSync's growing ecosystem, which aims to provide innovative DeFi solutions and improve the overall user experience in the decentralized financial space.
Tokenomics
Total supply: 21 billion
Token address: 0x5A7d6b2F92C77FAD6CCaBd7EE0624E64907Eaf3E
Hosted on zkSync Era network and non-transferrable to Ethereum mainnet
Allocations:
Team: 16.1%
Investors: 17.2%
Airdrop: 17.5%
Ecosystem Initiatives: 19.9%
Token Assembly: 29.3%
Airdrop Distribution:
zkSync direct users: 89%
Projects native to zkSync: 5.8%
Onchain communities: 2.8%
Developers: 2.4%
Total of 695,232 whitelisted wallets
NYSE:ZK tokens to become claimable starting next week, and ending in January 2025.
Notes:
Total of 33.3% allocated to ‘insiders’ is fairly low in light of other, recent high-profile airdrops. Said insiders also have a 4-year release schedule with a 1-year cliff - again, much better than other major token launches in 2024 (ends in June 2028!) Small unlock after 1-year cliff for insiders in June 2025 of just 3.66%.
Airdrop
Recently, zkSync held a significant airdrop of its ZK token, distributing 17.5% of the total to early users and contributors. This event marked an important milestone in the crypto community, rewarding those who have actively participated in the zkSync ecosystem. The goal of airdrop is to decentralize network management and foster a strong and active user base.
zkSync's airdrop strategy was designed to reward users who were active on the platform through March 24, 2024. Users had to meet certain activity thresholds on zkSync Era and zkSync Lite. The giveaway was divided into two waves. In the first wave, which started on June 17, 2024, tokens were given to zkSync Era users, zk Quest participants, security researchers, moderators, GitHub developers, $DEGEN and $BONSAI etherium recipients, Crypto The Game participants, and NFT Pudgy Penguin and Milady Maker holders. The second wave, which kicked off on June 24, extended to the native zkSync project, external contributors, and the Protocol Guild. The distribution was not without controversy. Some users have criticized the distribution criteria, claiming that they favor certain groups over others. Despite these criticisms, the airdrop was generally well-received, with many users expressing excitement about the opportunity to participate in the zkSync ecosystem.
Team
The zkSync team, led by CEO Alex Gluchowski, is a group of professionals dedicated to advancing blockchain technology through their innovative solutions. Alongside Alex, the team includes key members such as Zoe Gadsden, Anthony Rose and Geoffrey Thompson, each contributing to the project.
Alex Gluchowski, CEO and co-founder, has a strong background in engineering and a passion for blockchain technology. His leadership and vision guide the team to build scalable and efficient solutions for the Ethereum ecosystem.
Zoe Gadsden serves as Chief Operating Officer (COO), overseeing the operational aspects of zkSync. Through her experience and strategic planning, she ensures the smooth execution of project goals.
Anthony Rose, Chief Technology Officer (CTO), is responsible for technical development and innovation at zkSync. His expertise in engineering and blockchain technology helps drive the project forward.
Geoffrey Thompson, General Counsel, provides legal guidance and regulatory compliance. His legal and blockchain regulatory experience helps zkSync navigate the complex legal landscape.
Together, the zkSync team is committed to creating a more scalable and efficient Ethereum ecosystem through their innovative solutions. Their dedication and expertise contribute to the project's success and impact on the blockchain industry.
GitHub
zkSync primarily uses Rust and Solidity as programming languages. This is indicated by mentions of using Rust and Solidity to develop smart contracts and interactions in the zkSync ecosystem. In terms of activity on GitHub, the zkSync project has significant activity on GitHub, with several repositories associated with the project. For example, the zkSync Era repository has a large number of contributors and commits, and the number of forks and stars is very high! This indicates the demand for the technology and the good evaluation of the product from other developers.
In addition, there is a growing trend of developers releasing updates and actively developing new projects! It is worth paying attention to the number of commits on the whole way of ZK's existence.
Audit
The zkSync project has undergone several audits to ensure the security and reliability of its protocol. These audits are necessary to identify vulnerabilities and ensure that any bugs or security issues are fixed prior to deployment.
OpenZeppelin conducted one notable audit as part of an ongoing security collaboration with Matter Labs. The audit took four weeks and focused on assessing the security of zkSync Layer 1, a critical component of the zkSync 2.0 project.
Another audit was conducted by Code4rena, which offered a competitive audit with a total prize of $250,000. This audit focused on the zkSync protocol and included a repository with comprehensive documentation. Other reputable companies also audited the zkSync project, such as CertiK, which audited the SnarkLaunch project, and Halborn, which audited SyncSwap v2 pools.
These audits play an important role in ensuring the security and reliability of the zkSync project. By identifying and remediating vulnerabilities, they help protect the project and its users from potential threats.
TVL
The total blockchain value (TVL) of zkSync has steadily increased over the past few months. According to L2BEAT, as of June 27, 2024, zkSync's TVL is $1.24 billion. This is a significant increase from earlier this year, when the TVL was around $500 million.
zkSync's TVL is spread across several projects, the most notable of which are SyncSwap with a TVL of $55.94 million and ZeroLend with a TVL of $32.71 million. Other projects with significant TVL include zkSwap with a TVL of $27.08 million, KOI Finance, Holdstation, Velocore, and others.
The growth of zkSync's TVL is attributed to several factors, including the growing popularity of decentralized finance (DeFi) and the increasing adoption of zkSync technology. zkSync is a second-level scaling solution for Ethereum that utilizes zero-knowledge proofs to enable faster and cheaper transactions. This makes it an attractive option for DeFi projects looking to scale their operations.
Overall, zkSync's TVL growth is a positive sign for the project and the entire DeFi ecosystem. As more projects and users adopt zkSync, we can expect to see further growth in TVL and a further increase in the number of Tier 2 scaling solutions.
Conclusion
The zkSync ecosystem is growing rapidly, with various DeFi projects such as Mute being built on the zkSync Era mynet. The project has attracted significant attention and support from investors and industry players, with a total blockchain value (TVL) of over $138 million as of June 19, 2024. The zkSync development team, Matter Labs, is actively working to expand the zkSync ecosystem and plans to release ZK-Stack. This codebase will allow developers to create their own rollovers. Overall, zkSync is a promising Tier 2 scaling solution that aims to address the scalability and cost issues facing Ethereum, making it an attractive option for developers and users alike. Still, it's worth considering the large capitalization and further major unlocks that will be an “extra burden” to pump the price.
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