Hey ZKNation! We’re excited to share the latest update on the ZKSync Ignite program. Below, you’ll find key insights from Period 2, as well as the allocations and strategy for Period 3.
Period 2 Key Insights
- Total ZK Budget: 9,564,869.63 ZK
- Number of Incentivized Pools: 74
- TVL Growth of Incentivized Protocols: $20M
- TVL Growth per $1 of Incentives:
- Most Efficient: Aave ($124)
- Least Efficient: Holdstation ($13)
- Lending: $98
- DEXs: $59
- Perps: $18
In addition to absolute efficiency in TVL growth per $1 of incentives, we analyzed how TVL changed relative to adjustments in incentive amounts from Period 1.
Protocols with the highest responsiveness to incentives
(most positive impact per unit of change):
- SyncSwap: 194.73
- WOOFi: 181.33
- Aave: 104.35
Protocols with negative responsiveness
(TVL dropped despite increased incentives):
- zkSwap Finance: -253.15 (overall growth / $1 still at 28)
- Venus: -119.93 (overall growth / $1 still at 90)
For more insights, you can explore OpenBlock’s live ZKSync Ignite dashboard here:
https://app.openblocklabs.com/app/zksync/ecosystem
Period 3 Allocation Summary
- Total Budget: 11,457,639.42 ZK
- Increase: +19.8% from Period 2 (excluding bonus budgets for Jumper Exchange and LayerSwap)
- DEX Budget: 5,343,777.96 ZK (56.4%)
- Increase: +20.9% from Period 2
- Lending Budget: 3,826,250.37 ZK (33.4%)
- Increase: +11.6% from Period 2
- Perps Budget: 1,171,944.36 ZK (10.2%)
- Increase: +47.8% from Period 2
- Number of Incentivized Pools: 75
Newly Incentivized Pools
- SyncSwap: USN - sUSN
- SyncSwap: USN - USDC.e CL
- zkSwap Finance: WETH - WBTC
- iZUMi.finance: WETH - WBTC
- Reactor Fusion: WBTC
- Venus: wUSDM
- ZeroLend: WBTC
Defunded Pools
- zkSwap Finance: WETH - wstETH
- zkSwap Finance: ETH - rsETH
- zkSwap Finance: WETH - wstETH
- zkSwap Finance: WETH - wrsETH
Full details on Period 3 allocations can be found here.
Period 3 High-Level Strategy
- Increase overall allocations to maintain APRs amidst ZK volatility.
- Continue shifting TVL from USDC.e to native USDC, while increasing the USDC.e - USDC pool to support the transition.
- Lower lending rates for ETH/USDC due to high looping activity and begin working with Merkl to implement a new strategy starting in Period 4.
- Reduce allocations to ZK pools due to inferred governance concerns.
As we move into Period 3, your feedback and insights remain invaluable in refining our approach and maximizing the impact of the ZKSync Ignite program.
Thank you for your continued support!