Hey ZKNation! We’re excited to share the latest update on the ZKSync Ignite program. Below, you’ll find key insights from Period 3, as well as the allocations and strategy for Period 4.
Period 3 Key Insights
- Total ZK Budget: 11,457,639.42 ZK
- Number of Incentivized Pools: 75
- TVL Growth of Incentivized Protocols: $16.2M
- TVL Growth per $1 of Incentive
- Most Efficient: Woofi (82.36)
- Least Efficient: RFX Exchange (7.62)
- Lending: $61
- DEXs: $36
- Perps: $14
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 high responsiveness to incentives:
- Aave: TVL increase of $7M despite $20k less incentives in Period 3 relative to Period 2
- Maverick: TVL increase of $800k despite a 30% reduction in incentives between Period 3 and Period 2
For more insights, you can explore OpenBlock’s live ZKSync Ignite dashboard here.
Period 4 Allocation Summary
- Total Budget: 12,368,759.81 ZK
- Increase: +7.95% from Period 3
- DEX Budget: 6,671,393.10 ZK (53.94%)
- Increase: +24.84% from Period 3
- Lending Budget: 5,067,431.78 ZK (40.97%)
- Increase: +32.44% from Period 3
- Perps Budget: 629,934.93 ZK (5.09%)
- Increase: -46.25% from Period 3
- Number of Incentivized Pools: 58
Newly Incentivized Pools
- WOOFi: ZK
- Zerolend: USN
Defunded Pools
- iZUMi.finance: v3 M-BTC-WBTC 0.2%
- Koi Finance: v2 WETH-ZK 0.03%
- Koi Finance: v3 WETH-wrsETH 0.01%
- Koi Finance: v2 USDC.e-WETH 0.03%
- PancakeSwap: v3 USDC.e-ZK 1%
- SyncSwap: v2 WETH-wstETH 0.01%
- SyncSwap: v2 WETH-ZK 0.05%
- SyncSwap: v2 M-BTC-WBTC 0.01%
- SyncSwap: v2 WETH-wrsETH 0.01%
- SyncSwap: v2 USDC.e-WETH 0.05%
- SyncSwap: v3 USDC.e-WETH 0.05%
- SyncSwap: v3 ETH-wrsETH
- Uniswap: v3 USDC.e-ZK 0.3%
- zkSwap Finance: v2 USDC.e-WETH 0%
- zkSwap Finance: v2 WETH-ZK 0%
- ReactorFusion: USDC.e
- Venus Protocol: USDC.e
- ZeroLend: USDC.e
- ZeroLend: M-BTC
Full details on Period 4 allocations can be found here.
Period 4 High-Level Strategy
As discussed in the monthly report and delegate call, the strategy for Period 4 will focus on:
- No longer prioritize TVL growth and shift focus to minimizing slippage, especially in volatile pairs for DEXs.
- Focus incentives towards USDC-ETH and ZK-ETH pairs.
- Increase and provide competitive APRs for $ZK on Lending to improve APR options for $ZK holders to deploy capital in DeFi.
- Collaborate with protocol teams to refine allocations and curb exploitative behavior to better reward beneficial activity that fosters sustainable growth.
- Reduce the number of target pools to drive higher APRs despite lower token price.
- Start identifying low performing pools and protocols for future removal
As we move into Period 4, 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!