Scaling with zkSync
Revolutionizing Ethereum Scaling
Last updated
Revolutionizing Ethereum Scaling
Last updated
Our original thesis for building on Arbitrum was that layer 2 solutions would help the transition of ETH to the global economic settlement layer.
We think zkSync is fundamental to accomplishing this and bringing this thesis to reality.
What will all this mean for Parallax?
Given the increasing TVL on zkSync we think there will be a growing need for yield infrastructure tooling for individuals, DAOs and treasuries. Parallax looks to meet that need by offering all available products on zkSync.
We will begin by launching both Orbital and Andromeda on zkSync.
Orbital — Yield Optimizer: Parallax employs a sophisticated auto-compounding mechanism to boost returns for both liquidity provider (LP) tokens and stablecoins.
Andromeda — Multivariant Yield: Select from our top-tier zksync vaults or opt for Degen vaults, or even become a strategist and create your own vaults.
How about LSDfi? — Good question. Thus far, there hasn't been a lot of activity regarding LSDs on zkSync. As that changes, we will then look into launching Supernova onto Parallax.
Our goal with a potential zkSync integration is to become the leading source of yield infrastructure for zkSync tokens and assets. We plan to do that by partnering with up and coming zkSync protocols to boost their liquidity and provide additional revenue for their LPs.
First, let's understand what ZkSync is.
It is a solution for Ethereum that aims to solve issues with transaction speed and cost.
It does this by using zero-knowledge proofs to batch transactions off-chain and only sending a compressed proof to the main chain, which reduces gas fees and processing time.
It also offers better privacy features and is compatible with Ethereum’s smart contracts, allowing projects to benefit from layer 2 scaling while still using the Ethereum ecosystem.
zkSync have been the talk of the town the past couple of weeks ever since Arbitrum announced its airdrop, and Parallax believes that zkSync is the next upcoming chain.
Fast forward to today, during the ETH Seoul event, Vitalik favored Zero-Knowledge Rollup (ZK-Rollup). He highlighted that while Optimistic Rollups might take longer to develop, ZK-Rollup technology has a solid foundation that will make it the optimal scaling solution for Ethereum in no time.
Here is why we think that the ZK-Rollup will catch on:
ZK-Rollup is a technology that offers faster transaction times compared to Optimistic Rollup because it uses cryptographic validity proofs. With ZK-Rollup, there are no waiting periods for transaction validity challenges, which allows for quicker transaction processing.
However, Vitalik strongly believes in ZK-rollups ability to overcome challenges, as it is making significant developments in the space.
For example, ZK-Rollup L2 projects such as Scroll, zkSync, Polygon zkEVM, and BNB Chain ZkRollup are designed to be compatible with a range of smart contracts.
