On January 9, Veno Finance, a liquid staking protocol on Cronos (CRO), officially integrated with the zkSync Era Layer-2 blockchain scaling solution.
This implementation enables users on zkSync Era to directly engage in Ethereum (ETH) token staking, earning Liquid ETH (LETH) tokens; this development expands opportunities for yield farming within the decentralized finance ecosystem of Veno Finance, as per the latest information shared with Finbold.
The Veno protocol simplifies support for the Ethereum network among zkSync users. Its mechanism involves bridging ETH tokens between zkSync Era and the Ethereum mainnet, automating the staking and withdrawal processes on behalf of users.
How does staking on zkSync work?
By staking ETH natively on zkSync Era, users receive an equivalent amount of LETH tokens, providing an avenue to earn additional yield within its DeFi protocols.
Incentivizing liquidity providers of LETH, Veno intends to introduce its native VNO token to the zkSync Era blockchain as outlined in its roadmap.
By locking VNO into the Fountain, token holders can earn additional VNO as rewards based on the quantity and duration of token lockup. Alternatively, users can lock their VNO into the Reservoir and receive Real Yield rewards in ETH, comprising 50% of all ETH staking commissions earned by Veno.
An extra incentive mechanism permits users on zkSync Era to deposit their LETH-ETH-LP tokens into Veno Garden, enabling them to earn additional rewards in the form of VNO.
Further possibilities of staking on zkSync
Furthermore, Veno extends additional opportunities by issuing users an NFT receipt upon withdrawing their LETH tokens. This provision lets users access their unstaked assets promptly, offering tangible proof of withdrawal. This NFT serves as a means for users to leverage their funds before they become fully available.
The anticipated growth of the Exit Queue for staked ETH suggests that this feature will gain increasing significance over time. In scenarios where withdrawals of staked ETH may take weeks or months to process, this ensures that the tokens are not left unutilized for prolonged periods.
Zimfony, Product Lead of Veno Finance, said,
“Veno’s latest LETH withdrawal NFT brings unprecedented advantages to the liquid staking arena. Users gain the ability to seamlessly manage their finances by transferring claim NFTs and tapping into their value through borrowing, all while protecting themselves against market uncertainties.”
The product lead added:
“This launch is a testament to our ongoing commitment to providing liquidity and amplifying the utility of users’ staked assets. As one of the most promising Ethereum scaling solutions, zkSync Era is the perfect vehicle for us to expand our vision for cross-chain liquid staking.”
What does this milestone represent?
Securing this first-mover advantage positions Veno to cultivate a protocol that has experienced substantial growth in the past year.
The integration with zkSync Era marks a significant milestone for Veno, building on the recent launch of its Veno Gardens platform, offering diverse options for maximizing earnings for VNO token holders.
Additional noteworthy developments include Veno being the first to facilitate ATOM staking on Cronos and the introduction of its CRO Liquidity Strategy, designed to harvest and compound incentive rewards for users autonomously.
As a swiftly expanding Layer-2 scaling solution for the Ethereum blockchain, zkSync Era facilitates the scaling of the world’s leading decentralized network to new levels.
Distinguished by zero-knowledge proof technology, zkSync Era executes swift and secure transactions, significantly diminishing fees to a fraction of the conventional cost. This approach will aid in fostering widespread adoption in the future.