Zyfi Raises $2M to Enhance DeFi on zkSync with Advanced Gas Solutions

Key Insights:

  • Zyfi raises $2M to revolutionize DeFi on zkSync, simplify gas fee management, and boost blockchain scalability with ZK-rollup technology.
  • With over 815,000 transactions processed, Zyfi integrates with leading protocols, enhancing seamless on-chain experiences for over 110,000 users.
  • The new funding supports Zyfi’s development of SDKs, paymaster services, and research on account abstraction, driving innovation in the DeFi ecosystem.

Zyfi, a Paymaster-as-a-Service platform on zkSync, has raised $2 million in a private funding round. Prominent investors, including Everstake Capital and Tenzor Capital, led the round. Zyfi is leveraging this investment to revolutionize decentralized finance (DeFi) by enhancing user experiences with advanced gas abstraction technologies. Based in Switzerland, Zyfi aims to democratize access to DeFi and propel development within the blockchain ecosystem.

DeFi offers a pathway to financial inclusion, allowing individuals with limited access to traditional banking services to engage in financial activities. It allows users to access lending, borrowing, and trading services, irrespective of their geographic location or economic status.

Addressing Gas Fee Challenges in Ethereum

Ethereum has faced persistent challenges with high and volatile gas prices, particularly with the increasing complexity of on-chain smart contract transactions. The rise of DeFi applications has driven demand, resulting in inflated gas prices. This surge in network usage leads to higher costs for users due to the finite supply of crypto assets like ETH.

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Zyfi addresses this major pain point by simplifying the management of gas fees. Traditional Web3 wallets often leave users unable to complete transactions due to insufficient gas, disrupting their on-chain activities. Zyfi’s platform leverages native account abstraction on zkSync, enabling users to pay gas fees with any ERC-20 token or allowing decentralized applications (dApps) to sponsor transaction costs. This innovative approach, supported by an API, simplifies the integration process for developers.

Impressive Growth and Integration in the DeFi Ecosystem

Since its inception, 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 widespread integration demonstrates Zyfi’s commitment to providing efficient on-chain experiences across the DeFi ecosystem.

The underlying technology behind zkSync, ZK-rollups, offers a robust solution for scaling Ethereum. By bundling transactions into batches executed off-chain and then verified on-chain using zero-knowledge proofs, ZK-rollups significantly enhance network throughput, reduce congestion, and lower 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.

Future Prospects and Utilization of Funds

The newly acquired funding will enable Zyfi to expand its 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 implementing EIP-7702.

Gauthier Vila, Founder of Zyfi, stated that their mission is to address crucial challenges within the DeFi ecosystem and empower builders to create seamless user experiences. This funding positions Zyfi to drive innovation and expand its impact across the blockchain industry.

Denys Vashchuk, General Partner at Everstake Capital, expressed that Zyfi’s technology accelerates zkSync adoption and enables developers to prioritize innovation. He noted that Zyfi is the go-to tech stack for every dApp developer, supported by a strong team and visionary approach.

Advancements in ZK-Rollups and Future Innovations

Recent advancements in ZK-rollups include the development of zero-knowledge Ethereum Virtual Machines (zkEVMs), which integrate EVM computation with zero-knowledge proofs. This further enhances 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.