The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
The widespread adoption of decentralized finance has helped the blockchain ecosystem mature. Users are now more aware of the value propositions than ever before.
Such a paradigm shift has played a vital role in the cryptocurrency market, forcing networks to change their vision to prepare for long-term growth.
DAFI Protocol is delighted to welcome ZKSwap to its vibrant ecosystem. By integrating smart synthetic dTokens, the token swap protocol would have the opportunity to expand the utility of its network by rewarding long-term users through a demand pegged model.
Adopting Faultless Reward Distribution Mechanisms
As a Layer2 DEX with an AMM model, ZKSwap employs ZK-Rollup technology powered with Uniswap functionalities to offer high throughput, increased privacy, and security in the dynamic DeFi landscape. While the token swap protocol continues to equip its ecosystem with salient features, it is determined to establish a long-term partnership with DAFI.
ZKSwap will explore the integration of DAFI's synthetics into its ecosystem enabling the creation of dZKS for its ecosystem. These synthetic smart tokens will help incentivize users better due to the limited supply of synthetics in the ecosystem suppressing the effects of supply shocks.
dZKS will drive liquidity into the ecosystem fostering long-term growth of the ecosystem.
By issuing synthetics that will be rewarded at a later stage, ZKSwap strengthens its fundamentals by retaining users interested in the long-term growth prospects. The new network dynamic could purge those who are keen on capitalizing on quick profits out of the ecosystem. Consequently, enhancing scarcity while rewarding users based on their long-term commitment to the platform.
The scope of the partnership also expands to exposing DAFI's users to ZKSwap's Layer2 DEX platform. Users will seamlessly swap their tokens without any gas fees at an ultra-speed with increased privacy.
Driving Utility To The Layer2 Ecosystem For Massive Adoption
While DAFI imbibes core values of greater adoption, it is widening its spectrum to Layer2 solutions to reach a larger audience that can experience the positive effect of adopting a demand-pegged model. With every timely release of the synthetic tokens into the ecosystem, the native token's own adoption can also rise greatly, attracting users to participate in the network for longer.
All whilst, protecting the network when it witnesses drastic change due to consumption patterns impacting the token value and price volatility. Due to better rewards distributed into the network, the utility automatically rises, steering efficacy.
Zain Rana, Founder of DAFI, spoke on the dynamics of integration,
"ZKSwap promotes great functionalities through ZK-Rollup technology to create a seamless Layer2 DEX platform for mainstream adoption. With the features of a robust infrastructure, heightened security, extensive scalability, and high throughput, ZKSwap is establishing a high benchmark in the DeFi space. With the integration of DAFI's synthetics through the creation of dZKS, we are confident to expand the utility of our innovative model into the Layer2 ecosystem. This will potentially transform the dynamics of how Layer2 Network works."
Alex Lee, Head of Development of ZKSwap, expressed about the value propositions of the partnership, saying,
“With ZKSwap recently crossing $1 billion USD in total value locked up, we’re seeing exponential network growth. As we scale our ecosystem, we’re looking for more effective ways to reward our early adopters and long-term contributors without diluting their value. DAFI’s distribution model is a promising solution to a common problem faced by many growth-stage blockchain networks, so we’re thrilled to partner with them to explore the use of synthetic assets on ZKSwap.”
About DAFI Protocol
DAFI reinvents how every decentralized network is rewarded. By creating synthetics pegged to different decentralized networks, every blockchain and cryptocurrency can create a dToken flavor to reward their early users while still enhancing scarcity when demand is low.
DAFI can reward a network even when demand declines by issuing synthetics that will reward user’s later — instead of earlier. This approach will change the foundation of all staking, liquidity, and even social reward systems for the entire decentralized world.
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About ZKSwap
ZKSwap is a ZK-Rollup-based layer2 DEX employing the AMM model. ZKSwap transfers ETH and ERC20 tokens from the Ethereum network to layer2, using ZK-Rollup to maintain the consistency between the two layers. It is also instrumental in resolving Ethereum network issues such as network congestion, high transaction costs, low TPS and high latency.
- ZKSwap Official Website: https://zks.org/en
- ZKSwap APP: https://zkswap.app
- ZKSwap Twitter: https://twitter.com/ZKSwapOfficial
- ZKSwap Official Telegram group: https://t.me/zkswapofficial
Image Sourced from Pixabay
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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