Had some time this weekend to read the
@zksyncignite proposal and have a lot of thoughts:
1. This is an OG DeFi incentive campaign. DeFi Summer-esque. Yield farms for LP pools and lending protocol. Find a pool with a high yield, deposit money, and claim frequently. No points, quests, hoops. No BS (looking at you Scroll Session 2)
2. ZK is almost at 15c right now. That's $45M USD. These rewards are streamed directly to users based on the pools that
@openblocklabs recommends for maximum ROI. Claiming is through
@merkl_xyz, the same team that manages liquidity mining campaigns on
@Uniswap.
3. Given the size of the program and how few places there are for latent capital right now (ARB incentives have stopped, Blast is launched, Base isn't doing a token. Idk when
@movementlabsxyz mainnet is), I'd suspect that this will attract a lot of attention/liquidity. It'll pay (literally) to be early. Follow
@zksyncignite for updates (tho idk when they'll post...?). There's a TG too:
t.me/+jt7FJcWQlekxODAx
4. The goal of this proposal is to "Turn ZKsync Era into a liquidity hub for the Elastic Chain." This is an interesting angle and gives ZKsync Era a purpose in the Elastic Chain. With ZK-interop coming in the next few months, liquidity will be easily accessible across chains. Instead of
@lensprotocol wasting resources building deeply liquidity on their ZK Chain, they can outsource to ZKsync Era. It makes sense for ZKsync Era to position itself as a liquidity hub as this means LP fees, borrow/lending APYs, and other DeFi fees accrue to DeFi users on ZKsync Era.
5. I've heard some concerns about dilution or what happens when the incentives dry out.
5a. Dilution: Not really worried about this tbh. The point of dropping 17.5% of circulating supply during the airdrop was to be able to absorb additional sell pressure. There are 3.675B tokens on the market. An additional 8% over 9 months is nothing compared to ARB, STRK, OP dilution.
5b. Incentives: Yeah, when incentives dry out, mercenary capital will leave. But if the liquidity hub hypothesis works out, then fees for using liquidity on ZKsync Era will be sticky. Plus, 9 months is a LONG time for the Token Assembly to introduce other changes that create economic flywheels:
nitter.app/gluk64/status/18477024…
6. Last note I'll end on is emotions. People were unhappy with the ZK airdrop. There's valid criticism, but still a lot of FUD that's been addresses: Plug to go read the FAQs:
docs.zknation.io/zk-token/fa…. My point here is don't let emotions get in the way of an opportunity. If you do, you're NGMI.
Okay bye love you - 🐸🐵