[TPP-001] ZKsync Ignite Program (the "Ignite Program")

Token Mechanics Archived TPPs
21

Great proposal! Zyfi can definitely provide paymaster services to all DeFi projects accepted into the Ignite Program.

3 Likes
22

Thank you for all the feedback and questions!
We’re taking note of all the comments and will respond over the weekend or ealier to a consolidated list.

1 Like
24

Very good proposal. Much needed

25

Congrats on submitting the first Draft TPP!

Besides the feedback provided by other delegate in terms of costs, admin fees, program duration and KYC requirements; it would be useful if we can get details on the below:

  • How can the allocation plan for TPP rewards be clarified, and how can we ensure the ZK DAO retains some proposition power as to that plan? Right now it sounds like OBL &partners would have a lot of freedom to allocate the tokens as they desire.
  • To what type of pools will the rewards be applied to? Is the focus on bluechips and stables or will there be allocations to ZKsync project pools?
  • It sounds like participating projects will need to integrate OpenBlock Labs and Merkl APIs to participate. Could you provide more details as to what this entails, and explain why more standardized (and potentially already adopted) APIs can’t be used?

Additionally, I do echo some of the feedback around the project duration and the 3 seasons structure. Wouldn’t it be more efficient to make this proposal focus on season 1 and pass another proposal for a program extension IF season 1 delivered on agreed upon KPIs?

3 Likes
26

how can keep this value the $zk price?

27

Just saw that the TPP was also promoted via both zksync and zknation twitter accounts.

ZKsync Ignite will turn ZKsync Era into a liquidity hub for the Elastic Chain by streaming 300M ZK tokens over 9 months to DeFi users.

Will? Or could?

Also the fact that zksync ignite already has both a twitter account and telegram channel is “interesting”.

3 Likes
28

support :point_up_2: lets begin

29

good idea i will vote.

30

Thank you for the proposal. Great work!
Looking forward to the upcomming move from ZKsync

31

This program is crucial for ZKsync Era’s competitiveness among Ethereum L2s. We hope it will also lead to infrastructure maturity through enhanced liquidity, including native USDC adoption (with major CEX support), diversified DEX aggregators, and third-party bridges.

Additionally, participation criteria should extend beyond TVL; for instance, WOOFi’s capital efficiency should be recognized and our tvl naturally scale up with more onchain trading activities. We account for 10%+ of ZKsync Era volume, and the highest volume for the ZK token out of all dex liquidity pools. Similar to Arbitrum grants, a dApp could qualify via TVL or trading volume.

We’re excited to see the program in action!

3 Likes
32

Using $1M DeFi TVL as a criteria is a bad metric. WOOFi accounts for ~10% of daily onchain volumes and is by far the most capital efficient DEX on the chain.

Does it not having $1M in TVL make it less valuable?

33

It would be much better if this proposal were accompanied by an additional proposal to decentralize emissions decisions using a veToken model like Curve/Aerodrome/Velodrome etc.

This type of mechanism has proven success, counterbalances the sell pressure on the token caused by the emissions while decentralizing governance over the emissions, and lets the market decide the best protocols to allocate the liquidity to rather than centralized and potentially conflicted committees–this would also presumably get rid of the “KYC concern” as there would be no centralized counterparty doling out the incentives.

All that being said:

  • I realize zkSync governance is in an early state and there will be a lot of urgent commercial needs to serve before establishing better tokenomics mechanisms
  • It’s probably more urgent that there be a liquidity program of any kind as fast as possible than to wait for the ‘best way’ to govern it
  • The TPP is trustlessly ruggable by governance if we don’t like how it goes.

So at the moment, I am inclined to support the program but generally would encourage ecosystem players to try to establish some tokenomics value & governance flywheels for the token so that programs like this can be made more decentralized, market-based, and sustainable.

posted in my capacity as a delegate

3 Likes
34

This is a well-structured and thoughtful initiative. The ZKsync Ignite program not only promotes liquidity growth but also ensures transparency, accountability, and flexibility through iterative design and real-time performance tracking. Engaging both analytics providers and independent experts to guide token allocation is a smart move that balances strategy with oversight. Additionally, the focus on user experience and community feedback makes the program inclusive and adaptable. Overall, it’s a solid step toward fostering sustainable DeFi development on the ZKsync Era.

35

lfg
Super exciting to see this

36

Thank you for sharing the proposal for the ZKsync Ignite Program. I find the program’s objective to boost DeFi liquidity on the ZKsync Era ecosystem very promising. The allocation of 325 million ZK tokens over nine months, with a focus on strategic liquidity incentives, appears to be well thought out. I appreciate the iterative design with bi-weekly reviews, which ensures flexibility in achieving the desired liquidity goals. The oversight provided by the DeFi Steering Committee (DSC) and the transparency through public dashboards are excellent measures to maintain accountability. Overall, I believe this program has the potential to make a significant impact on the DeFi space.

1 Like
37

Overall, the Ignite program demonstrates a good balance of flexibility, transparency and community engagement that can effectively drive growth in the ZKsync DeFi ecosystem. However, there is still room for improvement in automation, standardization of incentive allocations, and participation thresholds. These adjustments will help increase the scalability and inclusiveness of the program, making it beneficial not only for large-scale agreements, but also for supporting innovative small-scale projects

38

Congrats on the first proposal. It seems like a step towards a major and important decision has been taken. I fully support ZKSync.

39

Suggestions for the ZKsync Ignite Program

  1. Simplify Rewards: Instead of weekly claims, let users claim rewards whenever they want. That way, both casual and active users are happy. Maybe even throw in an auto-compounder to make things easier.
  2. Get More Community Input: Make the feedback process more structured with clear timelines or a voting system. This way, people feel more involved and heard when it comes to big decisions like pool choices or reward timing.
  3. Keep Things Flexible: Regularly adjust token allocations based on what’s working. Having bi-weekly check-ins is great, but make sure you’re quick to pivot if something’s not clicking.
1 Like
41

Make zk invincible in the future.

1 Like
42

A summary for those who can’t go throught the whole draft:

The ZKsync Ignite Program proposes allocating 325 million ZK tokens over nine months to establish a DeFi liquidity hub on ZKsync Era. The goal is to increase DeFi TVL and enhance liquidity across interoperable ZK Chains, known as the “Elastic Chain.” Here’s an overview of the key elements:

Program Structure

  1. Token Allocation:

    • 300M ZK Tokens: Distributed to participants in selected DeFi protocols via six capped minter contracts (50M each).
    • 25M ZK Tokens: Reserved for administration and unforeseen expenses, divided across four capped minter contracts.

  2. Program Execution:

    • OpenBlock Labs (Analytics Manager): Reviews and recommends token allocations bi-weekly based on analytics, publishes quarterly performance reports.
    • Merkl (Technology Provider): Manages program operations, website development, and token reward distribution.
    • DeFi Steering Committee (DSC): Oversees key decisions, including veto power on program approvals, allocations, and renewals.

Goals

  • Primary Objective: Consolidate liquidity across ZKsync Era to serve builders and users, enabling efficient access to a wide range of assets.
  • Target Metrics: Track DeFi TVL growth, asset depth, and slippage reduction through live dashboards and quarterly reports.

Design & Timeline

  1. Iterative Design: Bi-weekly adjustments to token allocations based on performance data, with real-time updates on the Ignite dashboard.
  2. Program Timeline:
    • Set-Up (Oct-Nov 2024): Proposal review, vote, and launch preparation.
    • Three Seasons (Nov 2024 - Aug 2025): Continuous monitoring with seasonal reviews for adaptive adjustments.

Participation Requirements

  • Eligibility: DeFi protocols must complete KYC, maintain a minimum $1M TVL, and integrate with L2Beat and DeFi Llama.
  • Compliance: No sybil farming or metric manipulation allowed.

Infrastructure & Transparency

  • Website & Dashboard: Merkl will develop a user-centric platform for liquidity participation and reward management.
  • Analytics & Data Sharing: OpenBlock Labs will create public dashboards for tracking metrics.

Governance & Oversight

  • Accountability: DSC or Token Assembly can terminate the program at any time. Any unused tokens will remain unminted, with relevant contracts destroyed at the program’s end.

The Ignite Program aims to create a dynamic DeFi ecosystem, learning from prior incentive programs while maintaining transparency and governance integrity.

5 Likes