Cryptocurrency

DeFi driving zkSync growth as 1inch deploys on Ethereum layer-2 scaling platform

Decentralized finance (DeFi) protocol 1inch has deployed its aggregation and limit order protocols on Ethereum layer-2 scaling solution zkSync Era to tap into faster and cheaper transactions.

1inch Network is the latest of a host of Ethereum-based platforms and services to deploy on the zero-knowledge proof (zk-proof) based scaling platform. Uniswap, SushiSwap, Maker and Curve Finance have also launched on the zk-proof roll-up zkSync Era.

1inch Network co-founder Sergej Kunz highlighted the promise of the layer-2 solution as his platform joins a handful of first-movers to integrate with the zk-proof powered protocol:

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

A statement from Matter Labs CEO Alex Gluchowski, who heads up the zkSync development firm, notes that DeFi protocols have been a major factor in the uptake of 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 said that 1inch Network’s position as the largest decentralized exchange aggregator by on-chain volume would provide deeper liquidity to zkSync Era. The deployment is also touted to offer faster trades, better rates and lower transaction slippage.

Related: Symbiosis integrates zkSync: ‘Natural evolution’ of scaling solutions

zkSync is among a number of layer-2 solutions that have pioneered the use of zk-rollups to increase Ethereum’s throughput and scalability. The technology enables layer-2 protocols to move computation and blockchain state storage offchain, allowing these platforms to process thousands of transactions before providing summary data proofs to Ethereum’s mainnet.

Matter Labs secured $200 million during a series-c investment round in November 2022, taking its total fundraising to over $450 million to continue the development of its Ethereum scaling platform.

Other major Ethereum development firms, including Polygon and ConsenSys, have also developed their own zk-proof powered scaling protocols. ConsenSys released its zkEVM rollup to its public testnet on March 28.

Meanwhile, Polygon co-founder Sandeep Nailwal described zk-rollups as “the holy grail of Ethereum scaling” upon the release of its open-source zkEVM Ethereum scaling technology to the mainnet on March 27.

Magazine: ZK-rollups are ‘the endgame’ for scaling blockchains: Polygon Miden founder

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