ZKsync has evolved from zkSync 1.0 to the first zkEVM-based Layer 2 (Era 2.0) and is advancing toward an Elastic Chain in 2024. These innovations cement ZKsync as a leading Layer 2 scaling solution. The latest milestone is the ZKsync Ignite Program, a DeFi-focused initiative designed to unify liquidity across the ecosystem. This article explores its mechanics, benefits, and impact on DeFi Elastic chains.
Understanding the ZKsync Ignite Program
The Ignite Program is ZKsync’s inaugural Token Program Proposal (TPP), creating a unified liquidity hub for DeFi Elastic chains. Integrated with ZKsync Era, it offers:
- Robust DeFi Infrastructure: Asset storage, exchange, liquidity management.
- Broad Asset Access: Crypto-native and real-world assets (RWAs).
- Governance & Security: Fully on-chain, community-driven.
Token Allocation & Incentives
Total Allocation: 325 million ZK tokens over 9 months.
- 300M ZK: Rewards for liquidity providers (LPs) via 6 capped minters.
- 25M ZK: Operational costs for 4 capped minters.
👉 Discover how Elastic chains leverage unified liquidity
How the Ignite Program Works
Bi-Weekly Analytics Review
- OpenBlock Labs analyzes protocols and proposes ZK token allocations.
- DeFi Steering Committee (DSC) approves allocations via signed transactions.
Reward Distribution
- Merkl calculates dynamic rewards per pool.
- Users claim rewards via the Ignite Dashboard (updated every 4–8 hours).
Key Entities:
- Analytics Provider: OpenBlock Labs.
- Operational Hub: Merkl.
- Governance: DSC (5 members with veto power).
Benefits for DeFi Elastic Chains
1. Increased Shared TVL
- Pooled liquidity boosts Total Value Locked (TVL) across chains.
- Eliminates liquidity fragmentation, accelerating time-to-market.
2. Reduced Slippage & Enhanced Stability
- Unified liquidity minimizes price deviations for smoother trades.
3. Seamless Cross-Chain Interactions
- Near-instant swaps between Elastic chains (e.g., ZKsync Era-1 to Era-2).
4. Lower Fees & Faster Transactions
- Cost-efficient environment attracts and retains users.
👉 Explore ZKsync’s Elastic Chain advantages
FAQ Section
Q1: How do LPs earn rewards?
A1: By providing liquidity to Ignite-enabled pools, LPs earn ZK tokens proportional to their participation.
Q2: Can the DSC cancel the program?
A2: Yes, the DSC holds veto power over program continuity.
Q3: What’s the token distribution timeline?
A3: Rewards are distributed weekly over 9 months (300M ZK for LPs, 25M ZK for ops).
Q4: How are rewards calculated?
A4: Merkl uses activity metrics to compute dynamic rewards per pool.
Build Your DeFi Elastic Chain with Zeeve RaaS
Popular chains like Lens Protocol and Cronos will tap into Ignite’s liquidity hub. Launch your chain with Zeeve RaaS, offering:
- One-Click Deployment: Modular, low-code setups.
- 40+ Integrations: Customizable infrastructure.
- ZKsync Sandbox: Mainnet-ready testnets.
Contact Zeeve experts to get started.