DeFi boosts zkSync

Decentralized finance (DeFi) protocol 1inch has deployed its aggregation and limit order protocols on Ethereum layer-2 scaling solution zkSync Era to facilitate quicker and less expensive transactions.

1inch Network is the most recent Ethereum-based platform or service to be deployed on the zk-proof-based scaling platform. Additionally, Uniswap, SushiSwap, Maker, and Curve Finance have debuted on the zk-resistant roll-up zkSync Era.

1inch Network co-founder Sergej Kunz emphasized the potential of the layer-2 solution as his platform became one of a select few to integrate with the zk-proof-powered protocol:

“As zkSync Era gains steam, 1inch users will benefit from faster and cheaper transactions.”

According to a statement from Matter Labs CEO Alex Gluchowski, who also leads the zkSync development company, DeFi protocols have played a significant role in the adoption of the zkSync era:

“DeFi has been a driving force behind zkSync Era’s explosive growth that has seen over $200 million in TVL driven to the protocol in just three short weeks, and we expect the deployment of 1inch to contribute to even greater adoption and usage of zkSync Era.”

Gluchowski stated that 1inch Network’s status as the largest decentralized exchange aggregator in terms of on-chain volume would provide zkSync Era with greater liquidity. The deployment is also said to facilitate speedier transactions, improve rates, and reduce transaction slippage.

zkSync is among several layer-2 solutions that have pioneered the use of zk-rollups to improve the throughput and scalability of Ethereum.

The technology enables layer-2 protocols to relocate computation and blockchain state storage off-chain, enabling these platforms to process thousands of transactions before sending summary data proofs to Ethereum’s mainnet.

In November 2022, Matter Labs secured $200 million in a series-C investment round, bringing its total funding to over $450 million to continue developing its Ethereum scaling platform.

Other significant Ethereum development firms, such as Polygon and ConsenSys, have created their own zk-proof-powered scaling protocols. On March 28, ConsenSys released the zkEVM rollup to its public testnet.

Sandeep Narwal, the co-founder of Polygon, referred to zk-rollups as “the holy grail of Ethereum scaling” upon the March 27 mainnet release of Polygon’s open-source zkEVM Ethereum scaling technology.