DeFi driving zkSync growth as 1inch deploys on Ethereum layer-2 scaling platform |Latest|
1inch, a decentralized finance protocol, has implemented its aggregation and limit order protocols on zkSync era, an Ethereum layer-2 scaling solution, to take advantage of quicker and less costly transactions.
The next Ethereum-based platform and service to launch on the scaling platform based on zero-knowledge proof (zk-proof) is a 1-inch Network. On the zk-proof roll-up zkSync Era, Uniswap, SushiSwap, Maker, and Curve Finance are also preparing to debut.
As his platform joins a select group of early adopters to connect with the zk-proof enabled protocol, 1inch Network co-founder Sergej Kunz emphasized the promise of the layer-2 solution:
Users of 1 inch will gain access to quicker and less expensive transactions as the zkSync era takes momentum.
According to Matter Labs CEO Alex Gluchowski, who oversees the zkSync development company, DeFi protocols have played a significant role in adopting the zkSync era.
The announcement notes that DeFi has played a significant role in the remarkable expansion of the zkSync era, with over $200 million in total value locked (TVL) directed to the protocol in a brief span of three weeks. The deployment of 1 inch is anticipated to increase the adoption and usage of the zkSync era.
According to Gluchowski, the zkSync era would benefit from greater liquidity because of 1inch Network’s status as the largest decentralized exchange aggregator by on-chain volume. Additionally, the implementation provides quicker transactions, better pricing, and less transaction slippage.
A variety of layer-2 solutions, including zkSync, have pioneered using zk-rollups to boost the throughput and scalability of Ethereum. These platforms can analyze hundreds of transactions before sending summary data proofs to Ethereum’s mainnet thanks to the technology that enables layer-2 protocols to shift computation and blockchain state storage off-chains.
In November 2022, Matter Labs closed a $400 million series-c financing round, bringing its total funding to over $500 million. This money will be used to continue developing its Ethereum scaling platform.
Other significant Ethereum development companies, such as Polygon and ConsenSys, have also created scaling protocols using zk-proof technology. On March 28, ConsenSys made its zkEVM roll-up available on its public testnet.
Meanwhile, Sandeep Nailwal, a co-founder of Polygon, called zk-rollups “the holy grail of Ethereum scaling” after the company’s open-source zkEVM Ethereum scaling technology was made available to the mainnet on March 27.