Hey guys, welcome. My name is Tim. The host for today is KuKoiN5. I chatted. I think we're just waiting on one of our guests to join. It should take a few minutes.
Hey Jimmy, um, is so Azulis should be on as well as a speaker if that's possible.
Is that okay? Sure, sure. Yeah.
Alright, let's get started. For everyone who just joined, this is KuKoi's Far side chat #39 with Izumi. We'll be talking about on onboarding maximize capital efficiency in the ZK sync era. We have two guests with us today. We have Jimmy
co-founder of Izumi Finance as well as Sebastian who is the DeFi lead at ZK Sync. So welcome guys and please maybe start by introducing yourselves as well as your projects. Go ahead, start first.
Sure thanks. Hello guys. I'm Jimmy to go from the office to me finance and their own very honor to be here and also very honor to be listed on KuKoing as the first token of the case Inc. As for myself, I joined crypto in 2017. I bought some crypto
to Kitties and begin to build some projects on Ethereum. But at that time, the gas fee is quite inexpensive, so we're looking forward for different solutions. So when I see the solution of Jolaps, especially JKJOP, I think that will be the future.
For Izumi Finance, we are liquidity protocol. We are building two products. The first one is the EasySrap, which is the most advanced decentralized exchange in the world. It's a UnionSrap history plus the Ancheon Otherbook. So we built it fully on chain without custodian. It's very safe.
transparent but meantime very efficient. And the second product for Yzumi Finance is our liquid box which will help you to manage your liquidity in a smart way and also help to help the products boost your liquidity and also to provide a very sustainable way to maintain the liquidity
on the channel. Yeah, that's all. Happy to share more with you later. Thanks. Yeah, very excited to dive deeper into Zoomey. And then we also have a very special guest, Sebastian with us, his DeFi lead at ZK Sink. Maybe go ahead as well and introduce yourself as well as ZK Sink for those who might be not so familiar with it.
Yep, hi guys, can you hear me?
Yep, we can. Awesome. Yeah, thanks for having me. Super happy to be here. So my name is Sebastian. I lead TFI at ZK sync. ZK sync is a zero knowledge roll up on the Ethereum blockchain. So we're using zero knowledge proofs to
make Ethereum cheaper and faster without compromising any of the security Ethereum may not. We were the first ZKVM we launched at the end of March, on the 24th of March. Previously we had our V1,
let's say called the ZK sync one or now we call it ZK sync light, which was also the first one of the first zero knowledge relapse on the Ethereum ecosystem, which was primarily used for payments. If anybody in the audience had ever used, get going down
or the grants things like this, it would have probably gone through ZK sync light. But now we're very much focused on RV2, which is called ZK sync era, which is the fully functional solidite EVM compatible ZK EVM.
And yeah, I guess we'll talk a bit more about this and defy on ZK sync.
Yeah, I'd like to just zoom out a bit, Seb. So for those who might not be so technical, can you explain what a ZK Rollup is? Yeah, absolutely. So we know that the Ethereum blockchain is amazing in certain things and it has some trouble in other regards. So with the Ethereum blockchain is amazing,
is decentralized security censorship resistance, right? But it has trouble when it comes to transactions with regards to cost and speed. And as usage goes up, things become expensive, they become slow, there's a bottleneck. So the best way to
to avoid this as the blockchain grows and as more and more people around the world adopt crypto and blockchains is to perform transactions elsewhere. And the safest way to do that without compromising on the security that Ethereum may not brings is to do a roll-up.
And roll up there's two methods of doing this so it's either optimistic roll ups or zero knowledge roll ups so optimistic roll ups we know optimism we know our bedroom and then zero knowledge roll ups there's a few players in the space there's us there's polygon with the kvm there's scroll
Now there's a tyco coming out and there's also Starquare, right? And all of these projects have nuances. There's differences between optimistic rollups and zero-nulled rollups, the way that they function. So optimistic rollups are more based on game theory and it's saying we're at zero-nulled
are totally based on math. We use zero-in-all drill ups to prove that transactions have in fact happened in a very light way and then we sequence them and batch them and publish them on Ethereum, mainly on our layer one column.
contract. And yeah, that allows us to, I mean, this is a very, very high level way of explaining it, but it allows us to prove the transactions that happened in a very fast and very cheap way, which we believe is the most important thing to get more and more people to use the Ethereum blockchain around the world.
Got it got it. Okay cool. So let's dive deeper into his finance. We have prepared mainly for Izumi, but sad if you're beginning to add obviously from the ZK sync perspective just
feel free to join. So I'd like to know, can you, Jimmy, so can you, can you dive deeper into Azumi's AMM model? How is it unique and how is it different to other DEXs or AMM and how does no slippage work?
Sure, I like to. As for Yizumi, is this app actually is a very unique one. It's learned some ideas from Yuzumi's obviously with the concentrate liquidity to put your liquidity into a price range to make the same TVL gets far more
trading fees and rewards. So this is the start of EasySwap and the discreeted has the liquidity mm model. But meanwhile we want to integrate the Binance level or Centralized Exchange level trading experience to the On-Chain environment. So that's why we make the DLMM which is different
different from the unusual recovery CLAMM. The concentrate liquidity RMM is from unusual recovery and the discreeted hyzer liquidity RMM is from easy swap. So our DLMM using it is a unusual recovery plus an entire other book. The way we make it is to discretize the liquidity program
limit orders on the other book. The idea is very simple from continuous to discretitized and to make it into a very perfect work, it needs a lot of time. So we developed it from two years ago and published
the white paper about one half year ago and we have running it on some chains for like, safely for one year. So that's how we build the DLMM and most advantages of it is the first one if you swap there will be no slippage because you will swap on a
on certain pricing like 1,800 or 1,801. So there will be no sleepage for you for traders. It will be very process and accurate. And the second part of it is that for the LPs, you put your liquidity in a certain
price range, the liquidity will automatically be distributed into every price take within the price range, just like the unit service rate. So you could get the same capital efficiency or even a little bit higher capital efficiency than the unit service rate concentrated liquidity MR model. And the third good
part of it is that the liquidity is shared with the other book and also the AMM. That means if you are LP, you could put liquidity into the pool and earn the trading fees. You'll earn the trading fees from both from two ways. Why is from the swap, like swap actions from the traders?
second is the other book trading from another part of the traders and both ways will contribute trading fees to the platform and also the LP. So it is a very unique design to build the concentrated liquidity decks and meanwhile the uncle
other booktacks in the same time with the same liquidity onto the EVM compatible chip. And that's why we want to build it on the take a think because you know the take a drop is much more safer than the optimistic drop and also the
The finality will be better, which is very efficient for the trading. So we want to collaborate with the Zekai Sink and also to go deep to see what we could do for the armed trading. And it will also become a very solid liquidity infrastructure.
for the whole total ecosystem like for the lending for the Oracle and also for some other tokens listing on the chain and also for some like the file Lego. So we want to be the first part of the projects building on top of it. Yeah.
Got it and as a follow up I'd like to know why ZK saying so how does ZK technology help a DeFi project like Izumi Finance? Maybe both You Jimmy as well as said can can answer this as well Yeah, sure I don't something else
As I said, the first one I think is safety because during DFI safety is the most important thing. And with take a drop, the safety could be guaranteed by the take-a-proofs and also with
don't need to go into a gaming survey to be faced with some extreme scenario. That will be good and very make everybody very, I think, to take it easy, especially in some extreme situations. And the second thing I
think is that to restore the money from the take a ruub will be much faster than the optimistic ruub or some other chance. So that will be good for the like Abbey Chargers, some traders who Abbey Chargers price gap between the central axis change.
and also the decentralized exchange like the Izumi's e-design. So they could withdraw the money from the take a row up to the mainnet in just maybe several hours or maybe in the future, several tens of minutes. This will be very
be a very crucial standard for the traders and also for the DAX to restart money in a very quick way. And the third part I think is that from the digital app, I think, although I'm not quite an expert of
But I think that if more people use that and submit the transaction in certain time, the price cost for every trading will be less. So that will be good for the high-frequency trading and also for other
kind of the use case, which means the more people you got and the more transactions you got, the trading fees and the gas fees will be lower and that will become a very great part of the scale effect and which is very important for the four decks and the trading
Yeah, so I think this is some good parts of the thinking technologies already known for us, but we're also very happy to learn from SAP to see what they could do more for training platform. Yeah.
Hey, I think Jimmy did a really, really good job there of explaining the different reasons why D5 is going to be great on ZK sync and why D5 protocols are making choices. So maybe I can recap a bit what he said and also maybe
if I can add a little bit from my side. So fundamentally, when we're thinking about DeFi or different primitives, whether it's lending AMMs, DeXes, Purps, Options, during the DIDS, whatever, there's these certain core principles that matter, right? There's security.
There's speed of transaction and cost of transaction and we're kind of always playing with these three elements to figure out how well the protocol can work where it can be optimized right and like I said during my introductions words the the point of doing
things on a layer 2 now on a roll up is to really optimize speed and cost but you never want to be compromising on security right which is why we use roll ups and why we believe zero knowledge roll ups are super-attractive Mr.
because it relies on cryptographic math rather than game theory transactions. But beyond that, we have to think about the user experience, right? So one of the main differences between optimistic world since your knowledge relapse is the settlement for the finality, right? So an optimistic world
you're looking at this seven-day settlement or finality which can be shortened by third-party liquidity bridges for instance but you know that always imposes different risks and trust assumptions and also if you're a big trader or firm for instance it's some these bridges are not necessarily
reliable depending on the amount. But with zero knowledge, we'll have instant settlement and no challenge period. And then we can think about scalability as well, right? So optimistic rollups are kind of capped in their scalability, whereas ZK rollups can continue to scale
Now, if we start to think about
some of the super, super important advantages that you have between them, not only is he careful but an optimistic role but also the architecture that ZK sync has. One of them is our use of state discs and I think this is what Jimmy was
mentioning before. So because we use state diffs rather than call data, we're able to have massive gains and efficiencies when it comes to transaction or very transaction heavy protocols.
and also Oracle data. Because we're using state dips, we can basically pretty much ping the Oracle at every tick for very, very cheap. And if we have protocols which are very heavy on the transaction side, basically you're paying a
a gas transaction, a gas fee when you open the batch, but you can keep updating the state of the batch until the batch is closed, virtually for pretty much for free, right? And this has some pretty important implications, combining these two
things together right. So the speed and sheepness of updating the batch and also the speed and sheepness of calling the Oracle. This means that for instance market makers can start to offer, you know, they're taking less risk.
So they can start to offer much tighter ranges or much tighter spreads and fast have deeper liquidity. And this is then giving better prices. It's giving a better user experience to the end user right. So the end user
Here's what it wants to come and use this more. And then you have positive reflexivity, right? You have more capital flowing in. And one of the charms that ZK rollups have, and that is EKVM has, is that the more transactions and the more users, the faster and cheaper it becomes to use, right?
Another thing that I think is really important in the way that CK Sync has been built from the architecture perspective is really going to be our use of native account abstraction. This has been a hot topic since, I mean it's been around for a
well, right? And we've known about account abstraction and metallics has written about this extensively over the last few years, which is why ZK sync and matterlabs build ZK sync to have account abstraction native in the protocol. But I think the interest from the wider Ethereum community really started to take off.
around Bogota last year. And then obviously, he's done a rig in this year. Because we have it at the network level, it's the cheapest way to implement it rather than if it was at the app level, which is the way that it's
that 4337 is currently available in the wider EVM space. But generally, account abstraction is going to offer many new ways for users to interact with DeFi. So there's a lot of advantages here. You can bundle content
contracts, you can bundle different transactions into one, the protocol can pay for gas on behalf of the user. The user will be able via PayMaster to pay for gas with a different token, so not necessarily the ETH, they could pay in USDC or they could pay in the native token
of the protocol. So for instance, Izumi have their token. Users could pay for gas with the Easy token, which then gives also utility to the token, right? There's beyond governance, let's say. So there's all sorts of things that can be improved and innovated on here.
And also, frontends can be built to be much more sleek and much more similar to the user experience that people are currently familiar with in a Web2 space, let's say. And I think this is really important to onboard the next wave of retail users around the world.
people who are not crypto native necessarily, which their first time is in crypto, being able to offer them some really sleek, comfortable to use familiar user experiences, which abstract away the complexities of a blood
I think this is going to be really important in onboarding more and more people. And then letting them use DeFi protocols that are implementing these account abstraction advantages and leveraging the technological
efficiencies that ZKVM like ZKSN cabs are basically being as fast as cheap as possible with a deep liquidity for DFI type spreads. I think combining all of this together is going to make DFI really a good place to be on ZKSN.
I like to move on and get into some specifics in terms of the journey of zoom. I heard that
you guys have reached second in TBL on the ZK SIG era and broke 7 million in daily transaction volume. Can you walk us through how you guys managed to achieve these numbers?
Sure, I think we want to build on sake of sync with more liquidity and also to not just to be targeted as the first TVL or the second TVL, but we want to build it in an organic way.
way. So unlike to doing the liquid mining or giving out out of emissions or subsidies, instead we risk the money from other trends that brings liquidity to the JK thing. Like we started risk JK fund and to
to give the like junior or senior different APR according to the race and we raised 22 million dollars altogether for the first batch and we will raise more in the next month. And with liquidity we raised we could first to inject into the easy swap.
to build a basic layer of liquidity. So traders, if you are traders, you want to trade on take a sink, you will find the best price and the best liquidity on it as well. Though we are ranking the second in TBL, but with the concentrated liquidity
of DLAMM from the easy swap, actually we could provide at least twice or three times the liquidity than the traditional V2 model. So this will become the best trading place for all the traders on the gaysync.
And as I said, we even have some on-chain order book trading. I want to e-code SAP that I believe the future of on-chain trading in the DAX and the two important components that abstract account and also the ZKROL app.
with a better smart wallet or a better designer account, actually you don't need to pay the gas by yourself or you could pay any token to gather gas and we want to bring to the retail users with a balanced label or central slide, central
centralized exchange level user experience. So this will be the good part from the user end. And also for the liquid providers, SSL, the JKD lab could provide very solid and safe place for the LP2D
to deposit money to record the trading and also the liquidity provision we cost. That will be very 50. So with the abstract account and also the Zikr-Ruap, actually building onto other book decks will be the very near future.
And we raised liquidity and we built a basic liquidity layer and we have already saw the growth in the liquidity and volume. For now, our daily volume has surpassed $8 million daily transaction and the TVR has been around like
over 20 million dollars and we have not yet deposited all the money into the protocol. So we hope to see a bigger growth for Yizumi's on the KSync next month and just to keep an eye on it.
Awesome, and I'd like to move on to the topic of security. Securities are obviously extremely important for many projects, especially defy protocols that deal with a lot of user funds.
explain your project has been audited and in what way can you convey more confidence, security of the crypto community that is interested in investing in your project.
Sure, maybe I could talk a little bit more about Yizumi's security. Maybe SAP could talk more about the ZGIS Inc security. And for Yizumi, actually, we have been running our code, the LMM, for simply for over one year.
So it has been tested with over 100 million dollars to be very safe. And also it got audit report from the Certic, from the blog, blog sac and many other auditing firms. But before landing on the take-ins, actually we do
We did another round of auditing from the secretary and also some internal auditing teams from our investors because they need to put the money into it, they need to know every details of it. So more auditing is
very important for the five protocol. Meanwhile, I think the time is the most important thing to keep running it safely for a long time, with enough money will be the best testing and all the things for the five protocol.
Maybe to add to that quickly. So Jamie is talking about security for protocol audits and this is extremely important. And at ZK sync and MATER labs, we take security extremely important. This is the most important thing for us.
And this is why when we built CK SYNC, we spent an incredible amount of money auditing the system. These audits are public. And yeah, not to go into too much details now because it's not really the point of this AMA.
but one of the things that we did, which I think was very successful, is a combination of contest style audits like Kodarina and then audits with very top tier firms like OpenZeplin and combining these two methods
together for two audits. You'll do some very, very good results, which was important for us also to do when we open-sourced. So everything is public. You can get in touch if you want to chat more about it, but yeah, we take security very, very seriously.
Awesome. Okay, so I have one last question before we move on to the audience section. I'd like to know the roadmap for azume finance. What can we expect from both azume finance and zk sync for the rest of 2023 and beyond?
Okay, as for Zumi, we are just kick off the product on Zekisink. And I think there is a lot of potential things we could do on Zekisink. We are trying to explore more. And for now,
For the first, maybe two steps, we want to see the organic growth of TBR and volume, for sure for the five protocols, that is basically a line and very important. And the second step for us is we want to share the liquidity and liquidity infrastructure with more protocols. We will
try to make it as easy as possible to be to get to be accessed and also to be integrated. Meanwhile, if some tokens you want to gather liquidity in an efficient way, you could be listed on Izumi's e-sweb and we will try our best to provide the
support for your token. And maybe the next few steps for this year is that we want to design something very interesting. And now like for Dify Protocol, every Dify Protocol will have their own mission and target. And we want to integrate with
more different legos, build on top of it is WAP. And one of the most interesting for me is that I think there are some derivatives built on top of the concentration liquidity of the DLMM, maybe some cell output or cover call.
and many other things which could be done in the central axis exchanges before, they could also be done on the Zekestink on EasySwap and with the good finality, with the good liquidity and safety. And for user side, I'm also very interested in the small
and also abstract account. So we have already spent some time studying it and also to doing research on top of it. So yeah, as I said, maybe we will have more in collaboration about the next billion users on board.
Seb, anything to add from your set? Yeah, I think that we have a very, very strong pipeline at ZK Sync for different projects to come on mainnet. A lot of blue chips, Uniswap, curve, Avae, Balancer, Sushi.
pancake etc. We'll be onboarding in the next 8-10 weeks, let's say, over this period of time, so kind of by the summer. And then we have a lot of incredibly strong projects that are natively deploying like Izumi. There's plenty of other ones as well, which we're super excited about. And in general to see
new projects come on board us on the growth side trying to create synergies between projects trying to create more business opportunities and helping them grow this super exciting so I think we might have a ZK summer on our hands and I'm yeah I'm looking forward to that
Great. Okay, so first up from the audience we have cold. Please unmute yourself and ask your question. Thanks. Sweet, thank you very much. Yeah, it was nice here and more about Zoom-E.
kind of new to me. I just got started over on ZK recently, but my question was when are we getting pet Bay? Because like, man, that's that's all anybody seems to be talking about these days.
You could actually buy, there's some like, topic contracts on other decks on ZK sync at the moment. I think there's a
I was wondering about KU coin, but I didn't yeah that's good to know.
Do you have any other questions for Jimmy from the Jimmy side? No, no, all right. Thank you. Thank you. Okay.
All right, next up we have Aqua, Aquinox. Go ahead. I have a specific question for Izumi. So like
How we reduce the deep bag issue with iUSD and is there any single staking pool available for iUSD?
Yes, thanks for your questions. I think for Izumi, we issue the bomb token IOT. Actually, it is shared similar mechanism like liquid-staking token like the STS.
So it is fully backed by the collection of the liquidity in the DAX and when the time comes out, the borrowers will pay back the USDT and to the lenders and to buy the
So this is the basic mechanism of it. And for the ZXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX#
And so users could just deposit stable coins and earn the trading fees and some of the emissions and incentive tokens. This will be no impermanence loss, will be very good, just like farming on the LIDO STE to the east. So sometimes
it may be depended a little bit because some maybe more lenders wants to withdraw their principle before the log-up time. But if you buy low by the dip you will earn the profit. You will get a discounted USD which will be also very
I think very worthy to have a track. And we plan to unbought IYC to the ZXC as soon as possible. Yeah, that depends on the official bridge. I would like to know in the Twitter or in the our community when it has been reached. Thanks.
Cool. Yeah, we're actually we ran a time. I'd like to give both Jimmy you and his about you're
a chance to give your final thoughts on anything you'd like to share with the audience or where they can find out more information about Zumi or ZK Sink. Do you want to go ahead first, Jimmy?
Sure, just once in this. Comment, build, sick icing together. It's very, I think it will be a very good place to build your protocol, no matter your profile or
in FI, whatever you want to build, just to come to build ways with us on the Zikisync. And for Yizumi's side, we are at the liquidity protocol. We are providing all the way to for your liquidity on that chance.
All right, Seb, next yours.
Yeah, you can head over to zk sink dot IO if you want to bridge over if you want to check out our ecosystem projects already up. If you're building.
You can send me a DM if you want to on board, if you want to chat, whatever. And yeah, come build on ZK sync, the ZKVM with cheap and fast transactions.
Awesome. Thanks again both for taking the time as well as everyone else for joining. As always, everything set here is education and entertainment purposes only, not financial advice and hope to see you guys on our next one. Bye.