ZKFair has achieved significant success during its initial stages, attracting a TVL (Total Value Locked) of $123 million and the participation of 200,000 addresses. Presently, ZKFair faces two primary challenges: (1) how to retain the current TVL and continuously attract new funds into the ecosystem, and (2) how to incentivize developers to create rich and engaging applications on the ZKFair chain.
To transform ZKFair into a 10 Billion-dollar Project, drawing insights from excellent protocols in the crypto market, this proposal suggests advancing the protocol's development by focusing on attracting users and developers.
1. Retaining the current TVL and continuing to incentivize users to invest new funds in ZKFair through a compounding mechanism
**Key Points:**
(1) Users transferring USDC cross-chain to ZKFair can enjoy interest rates higher than those offered by other Layer 2 solutions in the current market.
(2) The interest rate users receive is determined by the amount of USDC they cross into ZKFair, their activity on ZKFair (gas consumption), and the amount of funds in the USDC pool used for interest payments, adjusted automatically by an algorithm. The overall principle is to encourage users to invest new funds in ZKFair and participate actively within the ZKFair ecosystem.
(3) Sources of interest: a portion from ZKFair chain gas fees; yields from deposits into the base interest rate protocol.
(4) Compounding mechanism: When users add new funds cross-chain to ZKFair, the protocol automatically reinvests the interest generated from the user's previous TVL into their principal, otherwise calculated based on the initial cross-chain amount. However, if the user transfers funds out of ZKFair, the TVL amount generating interest decreases. This mechanism encourages users to continuously inject new funds into the ZKFair ecosystem.
(5) ZKFair's revenue from gas fees and deposits into the base interest rate protocol is allocated as follows: 1) 50% used for buying back $ZKF to create continuous buying pressure, enhancing the attractiveness of the ZKFair ecosystem and confidence in $ZKF holders; 2) 10% used for interest payments; 3) 30% distributed to $ZKF stakers; 4) an additional 10% reserved for purposes to be determined by community voting later.
(6) ZKFair's official USDC pool for interest payments is initially injected with seed capital (less than $500,000). Subsequently, when users' withdrawal amounts exceed a certain proportion of the USDC pool balance, the protocol's automated trading contract intervenes, first selling its held $ZKF tokens to replenish the USDC pool funds. Once the $ZKF tokens are sold out, the algorithm automatically adjusts the interest rate based on the remaining funds in the USDC pool.
(7) Reference protocols: Elephant Money; MoneyArk.
2. Continuously attracting excellent developers through direct incentives and a launchpad approach
Key Points:
(1) Providing direct funding periodically to leading protocols within the ZKFair ecosystem and actively engaged community protocols.
(2) Following the model of Bounce.finance, employing a launchpad model with a low Fully Diluted Valuation (FDV) to invite developers for building DeFi (DEX, Lending), NFT Marketplaces, DID, GameFi, SocialFi, and other projects within the ZKFair ecosystem. This approach aims to draw market attention while giving back to the ZKFair ecosystem users, utilized for Fair Launches of these projects that require the staked $ZKF tokens.
(3) Reference protocol: Bounce Brand.
ZKFair在冷启动阶段取得了巨大的成功，吸引了1.23亿美金的TVL以及20万个地址的参与。当前，ZKFair面临的主要问题是：（1）如何留住目前TVL以及持续吸引新资金进入生态；（2）如何激励开发者在ZKFair链上开发丰富有趣的应用。
为将ZKFair打造成百亿美金的项目，借鉴Crypto其他优秀协议的思路，提议从吸引用户和开发者两个方面来推进协议发展：
1. 通过复利机制留住当前TVL并持续激励用户投入新资金至ZKFair
核心要点：
（1）用户跨链至ZKFair的USDC可享受超过目前市场其他L2的利息；
（2）用户获得的利率由用户跨入至ZKFair的USDC金额和用户在ZKFair上的活跃度（即消耗的gas）、以及ZKFair用于兑付利息的USDC资金池内的资金量有关，由算法自动调节。总体原则是鼓励用户多向ZKFair投入新资金，鼓励用户在ZKFair生态内活跃;
（3）利息来源：ZKFair链 gas的一部分；存入基础利息协议的收益；
（4）复利机制：当用户新增跨入至ZKFair的金额时，协议会自动将之前用户TVL产生的利息转换本金进行复利，否则按照最初跨入ZKFair的金额计算；但是如果用户将资金跨出ZKFair，则产生利息的TVL金额则减少。以此鼓励用户持续向ZKFair生态注入新资金。
（5）ZKFair 的gas收入、存入基础利率协议等的收入用途分为几个部分： 1）50%用于回购$ZKF，以形成$ZKF的持续买压，增强ZKFair生态的吸引力和$ZKF持有者的信心；2）10%用于兑付利息；3）30%分配给ZKFair的质押者； 4）另外10%保留用途，后续由社区投票决定用途。
（6) ZKFair 官方对兑付利息的USDC资金池注入初始资金（小于50万美金）；后续当用户的提款金额超过 USDC 资金池余额的一定比例时，协议自动交易合约会介入，首先出售其持有的 $ZKF代币以补充 USDC 池的资金；当ZKF代币出售完毕后，算法自动根据USDC资金池的剩余资金调节利率。
（7）参考协议：Elephant Money ; MoneyArk。
2. 通过直接激励和Launchpad持续吸引优秀开发者
(1) 定期对ZKFair生态类头部协议和社区活跃协议进行直接资助；
(2) 学习Bounce.finance模式，通过低FDV的Launchpad模式，邀请开发者开发ZKFair生态类的Defi（DEX、Lending)、NFT Marketplace、DID、GameFi, SocialFi等项目，吸引市场注意，同时回馈ZKFair生态类用户，用于需要使用质押的$ZKF才能参与这些项目的Fair Launch；
（3）参考协议：Bounce Brand 。
