Jul 22, 2022
Zunami Protocol Milestone Report: Upcoming Launch on BSC and Cross-Chain support
Onwards to stars despite the challenges!
Hello, dear users and sharks of decentralized finance! It’s been quite a while. Summer is a usually slow period in crypto. This is not about Zunami at all! While many dreamt about vacations and new destinations, we’ve been working hard to arrive on a new network and fulfill the community’s expectations.
Our latest newsletter is dedicated to the launch of the BSC version and the first cross-chain liquidity supply. Next, we’ll highlight the product analytics, cover the main milestones since the launch three months ago, and announce the creation of an insurance pool as well as a protocol treasury. Finally, we’re about to clarify the usually hot topic of ambassadors’ awards.
Fasten your seat belts and let’s go!
Leverage the BSC Cross-Chain Gateway
Despite the market meltdown and unexpected challenges for DeFi, this field is developing by leaps and bounds. We are well aware that alternative networks have become extremely popular due to the cheapness of the transactions that enable more retail users to join the game. At the same time, the most reliable and popular protocols with the best profitability still remain based on the Ethereum network.
We made a stead ahead of the mainstream market, launched the BSC version and became the first yield aggregator to provide cross-chain liquidity! Our BSC cross-chain gateway gives you the advantage of cheap networks and the profitability/reliability of the Zunami’s Ethereum version — you can invest for less than $1!
How does new concept work?
Let’s get into the tricky details of our new upgrade! The operation of our cross-chain liquidity supply is based on the LayerZero protocol for messaging between networks. We use StarGate as a bridge for sending stablecoins between networks. This powerful bundle enables a seamless transfer of USDT and USDC between 7 EVM networks! The BscZunamiGateway.sol contract was deployed on Binance — this contract accumulates users’ deposits and once a day, the operator sends the collected stablecoins via StarGate to the Forwarder contract on the Ethereum network. ZunamiForwarder.sol accepts funds from other networks, then deposits it into Zunami, receives ZLP tokens on its balance, and finally, sends a message with the total amount of ZLP received to the Gateway of the corresponding network via LayerZero.
The heart of Zunami has been and will forever remain Ethereum network.
However, in the future we will not be limited to supplying liquidity only to Ethereum protocols, but will accept and send liquidity to the best protocols and pools within the DeFi universe, regardless of the blockchains on which they are located.
The deployment of the Zunami cross-chain will take place in 4 stages:
Phase 1. Launch of the initial Zunami BSC Cross-Chain Gateway;
Phase 2. Launch of the Cross-Chain Gateway on most popular EVM networks and L2 solutions (Polygon, Fantom, Avalanche, Arbitrum, Optimism);
Phase 3. Providing liquidity to the most trusted and profitable protocols — regardless of which blockchain rails are used;
Phase 4. Interaction with non-EVM networks.
Now, as we ‘ve got that covered — let’s get down to the next topic.
Zunami Protocol Analytics
Despite the tremendous market crash and the massive exodus of liquidity from the DeFi market, the Zunami team was able to not only stay afloat, but also solidify and increase the protocol’s TVL. Despite all the difficulties, the platform’s TVL is confidently sitting at the $2 million TVL mark.
Whenever another crisis or crypto winter hits, those crypto users that are not risk-driven always use to swap their savings into stablecoins, trying to find a safe haven. Unfortunately, history tells us that sometimes even stablecoins cannot save users’ funds, and the desire of an ordinary Joe to earn +20% without risk turns into a huge portfolio loss.
Today, the rising trust in any DeFi has plummeted. Investors are confused. Fortunately, some DeFi space teams like Zunami Protocol project are always vigilant enough to evaluate the risks, and take care of the task of saving user funds even before any incident begins.
Moreover, during the 3 months of operations, our solution showed one of the best returns on the market. Despite all the numerous protocol downfalls that we have seen during this time, Zunami didn’t lose a single client’s dollar! Our average APY during this time period was 26%.
In addition to remaining one of the most profitable stablecoin farming apps, Zunami has also opened up the possibility for users with small deposits to get high profitability from the Curve and Convex protocols. The average deposit cost was about $9, which is much times cheaper than interacting with these platforms directly.
We are witnessing a steady & confident growth both in the number of users and the income that the protocol generates at large.
Launch Zunami treasury
Zunami DAO voted to set a 15% performance fee, which is taken from the income of depositors with auto-compound and distributed to the treasury.
Zunami, like any decentralized protocol, needs the means to scale business activities, as well as to carry out routine operational actions on the blockchain infrastructure (auto-compound, deposit/withdraw optimization, cross-chain liquidity providing etc). In these difficult times, we have already demonstrated to DeFi community that Zunami can stay ahead of the market (the most profitable and the cheapest to use solution), but to enable further development, we are forced to start compensating part of the costs through user fees.
The cryptocurrency market is extremely volatile by its nature and becomes especially risky during periods of bear onslaughts. Falling markets are characterized by reduced retail inflows, declining interest in the DeFi segment, declining rates of return, and a huge outflow of liquidity. We are already seeing that the TVL of the DeFi market experienced a formidable decline that decreased its total volume by 3 times (from $210 to $70 billion). All of these events are pushing the risks in existing DeFi solutions to their limits. Having considered all the options carefully, we offered a DAO solution to create a treasury, one of whose tasks is to accumulate funds that will be used to cover losses in the event of an emergency.
The purpose of creating a treasury is to accumulate funds, that can be used to develop the protocol, finance development, pay operating expenses (auto-compound, deposit / withdraw optimization, cross-chain liquidity providing), purchase tokens of other DAOs, purchase ZUN from the market and for compensation in the event of an emergency that resulted in the loss of user funds.
- Reduction of risks, availability of funds for payment in case of force majeure, a clear system for compensating losses;
- Accumulation of funds for the development of DAO;
- Сover operating expenses (deposit and withdrawal optimization, auto-compounding, cross-chain liquidity providing, rebalancing).
Wen Reward ser?
This was one of the most popular questions during the last few months. We see a lot of comments on our social networks from people asking when the army of Zunami ambassadors will be awarded. First of all, we would like to once again thank all participants of the program. Your contribution at the stage of creating our product was and still is, invaluable.
In this regard, all members of the Ambassador program who have more than 50 PTS on the Leaderboard will be rewarded with ZUN tokens! Leaders will receive more tokens than other participants. The exact number will be announced closer to TGE. Due to market conditions, we can’t launch the token right now or announce the exact date of TGE, but we promise that ambassadors will be the first to receive the token in the distribution. Our team appreciates your support. Keep calm and continue to support Zunami!
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Thanks for reading the Zunami blog!
Regards, Your Zunami Team
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