Proposal: Deploy Venus Protocol on ZKsync Era

Rationale

Matter Labs team proposes the L2 expansion of Venus Protocol to ZKsync Era (referred to as “ZKsync”). Through deploying on ZKsync, Venus can provide users fast and cheap transactions, without compromising on security or decentralization.

Motivation

ZKsync is a Layer 2 rollup solution for Ethereum that provides high speed and low-cost transactions by using zero knowledge proofs. Scalability is achieved through processing and bundling transactions off-chain and then verifying the bundles on Ethereum, via validity proofs. ZKsync has one billion+ in TVL and millions of active users. Venus Finance can take advantage of ZKsync’s high performance, while tapping into its DeFi ecosystem and user base.

Benefits of Deploying on ZKsync:

• Fast and Cheap Transactions: Support more users with the high throughput and single cent gas fees offered by ZKsync.
• Ecosystem and User Base: Access ZKsync’s ~$1.1Billion TVL and serve 3.6Million monthly active users.
• Interoperability: Plug into the liquidity and user base of other blockchains using ZKsync technology with native interoperability and account abstraction (e.g., Cronos blockchain, from Crypto.com).
• EVM Compatibility: Refactoring will be limited considering ZKsync is EVM compatible.
• Partnership Support: Co-marketing, introduction to ZKsync Defi teams, and technical support will be provided by the Matter Labs team, a core contributor to ZKsync.

Risk Analysis

ZKsync has undergone numerous internal and external audits by OpenZeppelin, Halborn, and Spearbit. Over $8m has been spent on audits and bug bounties so far. Currently, there is a $1.1m bug bounty.

Complete proposal on the forum post below.