ZKsync Ignite Program Update From OpenBlock Labs - Wednesday Dec. 4th 2024
Hey ZKNation! Below are the latest updates from OpenBlock Labs on the ZKsync Ignite Program.
Application Review and Recommendations
OpenBlock reviewed applications submitted prior to November 21st. Of the 35 applications reviewed, 15 protocols were recommended to participate in the first month of the program, which was approved by the DeFi Steering Committee (DSC).
Selection Process
For this initial ramp-up period, we decided to focus on protocols in the DEX, Lending, and Perpetuals categories, as these groups have historically been the largest contributors to generating a significant influx of TVL at the beginning of incentive programs.
Our short-term goal is to set the program up to generate buzz and, in our opinion, making a splash in TVL growth is the best way to accomplish this.
We used an objective and inclusive approach to avoid picking “winners and losers” in these categories. Approved protocols were any that met the following criteria:
- Category: DEX, Lending, or Perpetuals
- Total Value Locked (TVL): $1M or higher
- Verified Contracts: Only protocols with verified smart contracts were considered
- Audited Contracts: Only protocols with audited smart contracts were considered
Selected Protocols
DEXs: SyncSwap, Koi Finance, ZKSwap Finance, Uniswap, Maverick, PancakeSwap, Woofie, iZumi
Perpetuals: RFX, Holdstation, Vest Exchange
Lending: Venus, ZeroLend, Aave, Reactor Fusion
Applications will continue to be reviewed on a rolling basis, and protocols not selected in this round will be reconsidered in subsequent reviews.
Ramp-Up Period (First Month)
The first month of the program will serve as an initial ramp-up period where the focus will be on collecting valuable data to optimize future allocations. Key metrics we aim to analyze include:
- Elasticity: How responsive a pool’s TVL is to changes in yield.
- DEX Pool Preference: Contribution of a particular pool to ecosystem-wide price execution and swap volume for specific assets.
- Asset Performance: Evaluation of asset-level performance across stablecoins, LSTs/LSTRs, RWAs, and other collateral to understand their individual contributions to TVL.
- User Behavior: Insights into APR chasing, protocol preferences, and farming strategies.
To streamline incentives during this period, we intend to standardize yields across assets/pairs by applying a universal structure across the program.
Progress Update
Data Integration
We are actively working on integrating data from participating protocols. This involves ingesting and transforming data to be used by our models and to power analytics dashboards.
User Boost Development
We are developing methods to better target incentives toward desirable user actions. All user boosts will be reviewed and approved by the DSC prior to implementation.
Next Steps
Our focus areas for weeks ahead include:
- Data Quality Checks: Finalizing and verifying data accuracy to ensure proper program execution.
- Dashboard Creation: Building dashboards to visualize program metrics and insights.
- API Creation for User Boosts: Developing APIs to integrate targeted incentives for individual user actions.
- API Creation for Protocol Analytics: Developing APIs for protocol-specific analytics.
- Finalizing Initial APR Targets: Establishing initial APR targets at the pair and asset levels to share with the DeFi Steering Committee (DSC) for review and approval.
In the meantime, feel free to share any questions or feedback. Thank you for your continued support!