Coinspeaker Investors Back zkSync’s Zyfi with $2 Million to Tackle DeFi Challenges
Zyfi, the Paymaster-as-a-Service platform on zkSync based in Switzerland, has successfully secured $2 million in a private funding round. The funding, led by notable investors such as Everstake Capital and Tenzor Capital, aims to bolster Zyfi’s mission to revolutionize the decentralized finance (DeFi) landscape by enhancing the on-chain experience through advanced gas abstraction technologies.
Decentralized finance opens the door to financial inclusion by allowing individuals with limited access to traditional banking services to engage in financial activities. DeFi provides anyone with an internet connection the ability to access services like lending, borrowing, and trading, no matter their location or economic background.
Historically, one of Ethereum’s biggest challenges has been managing high and volatile gas prices, especially with the added complexity of on-chain smart contract transactions. These inflated gas prices are primarily driven by increased demand, which has surged with the rise of DeFi applications. As network usage skyrockets, the finite supply of crypto assets like ETH leads to higher price points.
Zyfi has quickly established itself as a pivotal player in the DeFi ecosystem by addressing one of the most significant pain points for users – the cumbersome process of managing gas fees. Traditional Web3 wallets often leave users stranded mid-transaction due to insufficient gas, disrupting their on-chain activities.
Zyfi’s solution leverages native account abstraction on zkSync, allowing users to pay gas fees with any ERC-20 token or enabling dApps to sponsor transaction costs. This innovative approach is powered by an API that simplifies the integration process for developers, allowing them to focus on enhancing their products.
Zyfi Impressive Growth and Integration
Since its launch, Zyfi has processed over 815,000 transactions and facilitated gasless flows for more than 110,000 users on zkSync. The platform has integrated with several leading protocols, including Zerolend, Increment Fi, PancakeSwap, zkMarkets, and various NFT collections on zkSync. This extensive integration underscores Zyfi’s commitment to providing seamless and efficient on-chain experiences across the DeFi ecosystem.
ZK-rollups, the underlying technology behind zkSync, offer a robust solution for scaling Ethereum by bundling transactions into batches that are executed off-chain and then verified on-chain using zero-knowledge proofs. This method significantly enhances network throughput, reduces congestion, and lowers transaction fees.
Unlike optimistic rollups, which rely on fraud proofs and can take up to a week for transaction finality, ZK-rollups provide immediate validation, ensuring faster and more secure transactions.
Recent advancements in ZK-rollups include the development of zero-knowledge Ethereum Virtual Machines (zkEVMs), which integrate EVM computation with zero-knowledge proofs, further enhancing scalability and privacy. Platforms like zkSync and StarkNet are at the forefront of these innovations, continually pushing the boundaries of what is possible in the DeFi space.
Future Prospects and Utilization of Funds
The newly acquired funding will be instrumental in expanding Zyfi’s capabilities. The company plans to develop Software Development Kits (SDKs) and paymaster services for dApps, enhance utility for governance token holders, and conduct research on account abstraction across various blockchain networks, including the implementation of EIP-7702.
Gauthier Vila, Founder of Zyfi, stated:
“Our mission is to tackle crucial challenges within the DeFi ecosystem and empower builders to create seamless user experiences. With this funding, we are well-positioned to drive innovation and expand our impact across the blockchain industry.”
Denys Vashchuk, General Partner at Everstake Capital, added:
“Zyfi’s technology accelerates zkSync adoption and empowers developers to prioritize innovation. It is the go-to tech stack for every dApp developer, supported by a strong team and visionary approach.”
With financial backing and a clear vision, Zyfi is poised to lead the DeFi space toward more efficient and user-friendly on-chain experiences. By leveraging cutting-edge ZK-rollup technology and focusing on user-centric solutions, Zyfi aims to democratize access to DeFi and drive development in the blockchain ecosystem.
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Investors Back zkSync’s Zyfi with $2 Million to Tackle DeFi Challenges
