3 Things to look for in a new Chain

Example & Update on everything about ZKsyn

2lambroz.eth

Jun 02, 2023

3 Things to look for in a new ecosystem

Been getting dms asking am i bullish on every chain i write.

i look into all "hot" chain because...

A thread on what i look for in new chains using zksync as example

New Chains typically has 3 key opportunities

1️⃣ Early Farming
2️⃣ Good Risk & Reward Early Token bets
3️⃣ Ecosystem Incentives

Bonus~! update n overview of all

zkSync Era

1️⃣ Early Farming

There are a few types of early farming, emission reward base or real trading yield

n of course if you are early, the pool size is small as well.

🔹Emission reward
Dex fight to dominate liquidity hence boosting reward
🔹Real yield
Bridges are limited in early ecosystem, likely only hv eth for bridging. Users typically end up using swap to to convert eth -> usdc/usdt/dai
Also u farm the trading volume from people that wash trade for airdrop lol
farm the airdrop farmer kek
REAL TRADING VOLUME!

using @mute_io as example

Trading volume > TVL is always sign of a good farm.

Whether is from reason above or market volatility, it will be good!

2️⃣ Good Risk & Reward Early Token bets

Every ecosystem needs dex, lending, aggregator, perp

There is always a chance to bet on the "first", the "go-to" protocol.

I see these as leverage bet on the ecosystem.

Dapp tokens are likely to outperform the $OP or $ARB "chain token" if the ecosystem does take off.

However u still need to consider its valuation n tokenomics

Example

e.g. if @syncswap is doing an ido raise with under 20-30m fdv is worth considerating as the "go-to" dex with the highest tvl on @zksync

( i just made up 20m valuation randomly for example, they haven't anno anything yet)

But how can u find these protocols?

follow someone call @2lambro i heard he is pretty good

Use his twitter list to check updates of zksyn project

https://twitter.com/i/lists/1640163264226299904

heres two threads on 50 projects on zksyn

( unfilter list, some rugged n disappeared lol )

But all jokes aside i haven't found a go-to source for zksyn material right now i am just closely monitoring trading volume, new pairs and all the launchpads on zksyn right now.

3️⃣ Ecosystem Incentives

Right now there aren't incentives like @optimismFND but only potential airdrop.

But often the the best farms are good protocols that got incentives from chains. They are typically vetted by the chain + incentives are back with thick liquidity.

🔥 Update n overview of all @zksync

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Breaking into more detail

👩🏻‍🌾Yield

@syncswap
eth/usdc 22.6% apy TVL 48m
BUSD/USDC 6.4% TVL 3.2m
@mute_io
eth/usdc 22%-53% apy TVL 13m
(their yield boost is are carry over all pairs, so it might be a more effectly farming if u are doing mulitple pairs)
@velocorexyz
eth/usdc 17.44% apr
(solidly yield, but brible aren't that gud atm)
@spacefi_io
eth/usdc 38% apr if u lock 7 days, 26% of it is in xspace
(xspace unbond in 30days or -50% of instant unlock)
@veSyncL2
eth/usdc apr 28% apr
(solidly yield, but brible aren't gud atm)
@mavprotocol
its basically uniswap v3 kinda, not sharing apy.
if u have views on the price of eth can check it out!
@overnight_fi
u can mint usd+ with usdc, they then put ur usdc into work for yield for u.
but the yield on zksyn right now is all usdc/usd+ LP on different swap a bit of circle jerk really
@izumi_Finance
farming for uniswap v3 position mainl for shitcoin pairs (degen farm)

📍Lending markets

@Era_Lend
3.2m tvl supply or borrow rate aren't high
u can only borrow/lend eth & usdc
@fringefinance
soon on zksyn still waiting

📍Perp

@OnchainTrade
synthetic perp + swap
i don't fully understand yet. but seems like its a mixing different pools together to share perp + swap fee yield.
i have raised some questions in their discord.
I don't fully understand it yet wont comment it

Some projects i have an eye on

@derivio_xyz
@zkaliburDEX
@MESprotocol
@mesonfi
@DerpDEXcom

@derivio_xyz

one of the more legit looking projects, still on testnet tho.

u should be able to trade perp & option. looks like a gmx model for the perp part with some lock staking feature on glp, they call it bond not sure can u trade “interest rate” of their glp yield

@zkaliburDEX

camelot on zksyn basically. As a fan of camelot i will be keeping an eye on it. IDO coming soon

@MESprotocol

WOW a lot of progress from last time i checked when they didnt even have a gitbook.

They now have a working order book dapp + gitbook.

ngl tho i don’t really know what can i do there n haven’t had the urge to trade there n im not sure about where they liqudity comes from. need a deeper dive to search for potential opportunty.

if the mes team see this feel free to dm me!

@DerpDEXcom

Dex with v2,v3

WHY M I LOOKING AT IT?

I fucking love memes

look at this derp shit, come on.

i'd paid a extra bps in trading fee just to support them lol

@mesonfi

cross chain swap, quite interesting go-to-market strategy

they are leveraging OKX wallet intergration n “missions” for rewards there to get users.

But u have to register somehow to provide LP and docs seem no sign of issuing token any soon. not much to invest for me

Now thats a wrap.

hope u enjoyed it.

feel free to follow me on debank or donate to me
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i need to hit 10k before end of June

As part of my bet with my friend, because i said i can reach 10k followers without airdrop in 6 month starting from jan

i sell alpha & research for followers & attention.

get on all my social pls

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