RFC #2 Proposal: zkSync Era as a Superior Alternative For Initial Deployment

[RFC] Request for comment
1

Proposal: zkSync Era as a Superior Alternative For Initial Deployment

Proposal Overview:

While the original proposal to form a strategic partnership between Wagmi DAO and Kava is well-considered, we propose the initial launch to be on zkSync Era, a zkEVM Layer 2 scaling solution on the Ethereum network. zkSync Era offers a robust and high-performing environment, with proven metrics and user adoption, making it a more favorable choice for launching Wagmi DAO’s suite of DeFi products.

zkSync Era is a general-purpose zk-rollup platform aiming at implementing nearly full EVM compatibility in its zk-friendly custom virtual machine. It implements standard Web3 API and it preserves key EVM features such as smart contract composability while introducing some new concepts such as native account abstraction.

Rationale:

zkSync Era is currently leading in terms of activity and transactions per second (TPS) across all Ethereum rollups, including Ethereum mainnet itself. It boasts $430 million in TVL and is executing upwards of 30m TPS on a 30-day rolling basis, as per the data available on l2beat.com.

zkSync also consistently boasts the strongest community in the ETH L2 space, both in terms of size and engagement.

Twitter: 1.2m followers

Discord: 705k members

The knock-on effects are readily observable and apparent via onchain activity. According to data from growthepie.xyz, zkSync has the highest L2 active addresses on a weekly basis.

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Growthepie.xyz measures the gas fees spent and the number of transactions sent to smart contracts. They then map these smart contracts to distinct categories. The chart below breaks down the total blockspace of a chain into these categories. Each category is made up of multiple subcategories, which are listed in the mapping table below the chart. Toggling between the “Absolute” and “Share of Chain Usage” options shows either the absolute amount of gas fees/transactions, or the share of the chain’s total blockspace.

Diving into the data reveals that amongst the L2 community, zkSync has the largest DeFi activity relative to the chain users.

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Security

zkSync has spent more on security than any other L2. We’ve spent several million dollars auditing the protocol & provers multiple times with various auditors like OpenZeppelin, Spearbit, Halborn.

Most recently, we launched a $1.1m contest with Code4rena, the largest ever audit contest. Security is paramount zkSync, and we never cut corners.

Concerns with Kava:

Kava blockchain, on the other hand, has been observed to have lower volume and user engagement, which could potentially limit the growth and outreach of Wagmi DeFi products. The lower user base and volume on Kava may not provide the desired liquidity and may hinder the attainment of optimal utility and growth for both entities.

This would especially be a burden to the ICE holders, who have been patient holding throughout the bear market and are looking for the best growth scenario once they migrate their ICE to WAGMI tokens.

Moreover, the community’s mixed reactions to the proposal for WAGMI to launch on Kava reflect the prevailing uncertainties and preferences for more established and widely-recognized chains. While some community members see potential in Kava’s focus on DeFi and its native integrations, others remain unconvinced and advocate for launches on chains with proven track records and higher levels of adoption. This sentiment has been readily observable in the WAGMI community Telegram chat.

Proposed Terms:

We are open to providing financial support to Wagmi DAO, which could be in the form of a grant or other mutually agreed structure. Unlike Kava, zkSync does not currently have a native token, and would therefore use ETH for any financial support. This removes a substantial amount of complexity because it does not require us to establish a ratio between market prices of tokens that are constantly in flux."

Benefits:

For Wagmi DAO:

  • Enhanced access to a broader ecosystem and substantial support to facilitate growth. Strategic first-mover advantage, leveraging zkSync position in the L2 Eth community and overall crypto markets.

For zkSync Era:

  • Integration with innovative DeFi products and further diversification and enrichment of the zkSync ecosystem.

Decision Making:

This counter-proposal should be open for voting by the governance token holders of Wagmi DAO, requiring a majority for approval.

Conclusion:

In conclusion, while the partnership with Kava is a strategic move, aligning with zkSync Era could potentially offer more significant benefits and growth opportunities for Wagmi DAO, given zkSync’s superior performance, higher volume, and extensive user base. The amazing statistics of zkSync Era are readily observable on l2beat.com, and I recommend a thorough review of these before making a final decision.

Nota bene:

  • Proposal details and terms are open for discussion and negotiation to ensure mutual benefit and growth.
3 Likes
3

I think we need a more specific offer. How much ETH is being offered?

2 Likes
4

zkSync is clearly better positioned to give us WAGMI DAO visibility and overall benefits.

2 Likes
5

Agreed, between this and the last proposal it’s beginning to paint a picture of unprofessionalism from WAGMI. Missed deadlines, vague proposals (no information in regards to what or how much support zksync would provide) is all starting to raise concerns for stakeholders. Transparency should be key and the conflicting information coming from Dani on twitter doesn’t help either. Moreover, if WAGMI’s is going is ‘to be everywhere’, why not launch first on Ethereum and then discuss potentially other L2s.

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Zk team typed the current proposal not WAGMI.

Lets see if zk team will make it more clear or in other case i dont see why support a “we will provide help” fugasi words

1 Like
7

So from what I can understand here ZKSync proposal is not about swapping tokens but about grant to heat up projekt. If so we need know how big this grant is: 500 ETH, 1000 ETH, 1500 ETH? You need to make it clear to community. I also understand that on our side this grant will go for LPing with WAGMI. If ZKSync is going to declare amount of ETH and other base condition of this grant we can then vote.

1 Like
8

Hi

To be clear, this proposal was submitted on behalf of zkSync. This is not a proposal that was prepared by the Wagmi team or Dani.

1 Like
9

isnt this token being farmed actively? I mean KAVA is at least what it is! Though i feel zksync has more backing

10

We understand this requirement.

But we urge not to pick a chain simply because of a $2m grant in Kava tokens that may rise or fall. Ours would be in ETH.

We urge you to consider the community, native ETH L2 and powerful narrative dynamics going into a new bull market.

Our impression was that we should have our initial proposal displaying the chain. The community should be choosing a chain, not just looking at the number - this is short sighted!

We welcome everyone’s feedback and then plan to update our proposal early next week.

1 Like
11

compared to kava proposal. Better tech, better volume/metrics, better growth outlook + airdrop (and the volume it comes with that will give extra fees to the protocol).

if zksync offers 2m in eth for lp then this is a straight yes!

1 Like
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The details of the chain are important. zkSync is clearly better in many areas.

However, the amount of ETH offered is also important. If we got a matching offer of ETH, then there would be little doubt we would choose zkSync.

2 Likes
14

I feel like zkSync is much better in terms of the chains performance and future growth potential. zkSync will most likely be extremely popular once they launch their token and once people realise that the chain is technically superior than the optimistic rollups, ARB and OP.

If we get a concrete offer of $2m ETH then I have no doubt this would be passed in an instant.

15

underwhelmed tbh. Let’s make a concrete offer…

IMO good on KAVA to step up to the table…but defillama don’t lie

comparison
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Hard to argue the numbers which are much higher in terms of both volume and inflow…but muh TVL…

So to ZK let’s see what the grants are and where you can be to capture the most anticipated protcol launch since 2021. Dani Sestagucci is straight Gucci linens and is essentially the Moses of DeFi.

To KAVA up the offer, sweeten the juice, you don’t want to see Dani get on the loose.

Lastly, a $10 million grant offer has been floated around from ARB…birdies are chirping…

Looking forward to your replies

3 Likes
16

Unfortunately, I do not see support for Wagmi. Just ad that zksync is a cool network. In the initial stages, every blockchain shows big growth, volume, etc. However, that continues not so far…

17

I have serious concerns about zkSync’s security. Just because they’ve spent a lot on auditing doesn’t guarantee that it’s bulletproof. What if there’s a major security breach down the line? We can’t afford to take that risk.

18

ZkSync is a really good L2 and we could be pioneers in this chain. I approve!

1 Like
19

Choosing zkSync for our initial deployment is a risky move. While it might have impressive metrics right now, it’s important to remember that the crypto space is highly volatile. What if zkSync’s performance takes a nosedive after we’ve committed to it?

20

Both ZkSync and Kava have greatly inferior explorers than many other chains - this should automatically disqualify both chains from having WAGMI launched on them.

Base on the other hand is a shiny new chain, has a chad explorer built by the Etherscan team, lots of eyes on it atm due to Friend Tech, most major DeFi projects are already deployed there (uniswap, sushi, curve, aave, balancer, etc), and is created by a team that’s being sued by the SEC.

If you ask me the only logical choice is to deploy on Base.

I invite a wordsmith to craft up a counter proposal with reasons to launch on Base.

1 Like
21

While zkSync might offer some short-term advantages, we should be looking at the long game. Kava may not be as popular right now, but its focus on DeFi and native integrations could pay off in the future. We shouldn’t be swayed by current trends.

22

Very vague on details, no ETH amounts quoted

Do we know how transaction fees compare to Kava (Kava’s are ridiculously cheap almost zero)
I assume they will be far cheaper then Ethereum (Ethereum’s fees will make arbitrage and high tx volumes very expensive)

zkSync seem to have decent levels of usage but are relatively new so security is not battle tested, unlike Kava who have been around for 4 years with no major security hacks

AFAIK zkSync don’t have native USDT which is vital for liquidity in light of recent bridge problems like Multichain. I certainly won’t be using externally bridged assets again myself. Kava already has native USDT an soon native wBTC, how long will we have to wait for zkSync to offer the same

Lastly Kava are 100% DeFi focussed