Introduction
ZKFair is a First community based ZK Layer 2 project. They have recently concluded their token sale and 100% tokens will be distributed to the community in contrast to other similar projects where major portion of tokens is distributed among Founders, developers, team members, Marketing, Big Investors etc.
Considering their initial stance, ZKFair has the potential to become a Top 100 Crypto project.
An Ethical SWOT analysis is done below for this project based on the data available on their website, Social media discussions, white paper and their approach in token sale etc. Further, based on SWOT analysis, Proposals will be discussed for further journey for ZKFair project and the community attached to this project.
SWOT ANALYSIS
Strengths
- Decentralized Governance approach, where power and control are also distributed among token holders.
- A big, vibrant and acting Community developed already – 200K+.
- Team is acting transparent and honest and the process of decision making is fair.
- All tokens are sold.
- Good Social presence on Twitter, Telegram, Discord etc.
- Indulged into Fair distribution of Tokens (Investor friendly approach).
Weaknesses
- No Formal Governance structure yet made.
- No Venture Capitalists backup (Challenge of Funds).
- Website & Whitepaper need review.
- No own Dexes, Derivatives, Lending, Yield, Yield Aggregators, Cross chain bridges, Liquidity managers, CDP etc. developed yet.
Opportunities
- Due to issues of high fees and scalability issues in Ethereum, the People are now inclining towards Layer-2 solutions (People are surfing upon this Narrative and wish to invest in new Ethereum Layer-2 chains).
- A very low market cap at launch (only 3M FDV). Investors love to invest at this price. Nothing is priced in yet (An easy 500X and more potential).
- A perfect time for Launch – Next Bull run is due in next 12-20 months based on historical data. Lesser chances of Major Price dumps in the coming 12-20 months.
- Still not listed on exchanges. There is a chance of ample growth.
Threats
- New upcoming Ethereum Roll-ups wave (e.g. zkSync, Linea, scroll, Manta, PolygonEVM etc. could overshadow ZKFair.
- Changes in legal framework can impact growth of ZKFair ecosystem.
- Time is limited for next Bull Run. Developments need to be highly paced.
- Less Funds in hand.
- Dependent on Ethereum, Any issue in Ethereum will directly impact ZKFair.
Proposals to take the Project forward
Contents
- Review of White paper & Website
- Increasing Community and Investor’s knowledge
- Advertising
- Benchmarking competitor Layer-2 zkRollups
Generating TVL
-
Releasing own Dapps* -
Partnerships with other ecosystem partners and major Dapps*
- Staking, Earning and Burning Mechanisms
1. Review of Whitepaper & Website :
o Explain the problem we are going to solve
o How the ZK Roll up technology will be used in our project
o A Roadmap defining the guidelines and timelines of the project
o Community involvement – incentivizing, rewards , Governance structure and community driven initiatives
o Project leading members or advisors, including their experience, skills, and track record
o How our project plans to differentiate itself from its competitors and provide a unique value proposition to the users.
o Project’s legal structure, jurisdiction, and compliance with relevant laws and regulations.
o Tokenomics: Supply, Distribution, and intended usage.
2.Increasing Community and Investor’s knowledge
o Releasing Demo videos on the Website and social media.
o Releasing monthly progress report with the link on ZKFair website.
o Online Forums, Meet-ups & Newsletters etc.
o Conducting competitions, Rewards, etc.
3. Advertising
o Maintain presence on Twitter, Telegram, Discord, Facebook, Instagram, Linkedin, Reddit etc.
o Regular Blogs on ZKFair Chain on Coindesk, Bitcoin Magazine, Cointelegraph, Bitcoinist, NewsBtc, Medium, Coinbase, Binance etc.
o Conducting conferences and community meetings, online webinars etc.
4.Benchmarking other Ethereum L2 Rollups:
1. Generating TVL:
Top 10 zk Roll ups constitute more than 99% TVL of total all zk Roll up projects.
|Name | TVL (As on 29.12.2023)|
|Arbitrum | 2.44 b|
|Base | 445 m|
|Linea | 53 m|
|Manta | 238 m|
|Mantle | 123 m|
|Metis | 64 m|
|Optimism | 909 m|
|Polygon zkEVM | 22 m|
|Scroll | 23 m|
|ZKFair | 3 m|
|zkSync | 160 m|
The most of the TVL of Top 10 zkRollups is coming thru their;
- Dexes
- Derivatives
- Lending
- Yield
- Yield Aggregators
- Cross chain bridges
- Liquidity managers
- CDP
The Top Dapps on Competitor’s chains are listed below:
ZKFair can release its own Dapps or collaborate or do partnerships with the major Dapps to grow its ecosystem to generate TVL and regular earnings as fees and interests etc.
| zkRollup chains | Dexes | Derivatives | Lending | Yield | Yield Agregator | Cross Chain bridges | Liquidity manager | CDP |
|---|---|---|---|---|---|---|---|---|
| Base | Aerodrome | Xena Finance | Seamless Protocol | Aura | Beefy | Stargate | Gamma | Overnight USD+ |
| Mantle | Agni Finance | KTX | ||||||
| Scroll | Ambient | Symmetry Trade | Cog | Stellaris Finance | XY Finance | Steer Protocol | ||
| Polygon zkEVM | Balancer V2 | QuickPerps | Keom Protocol | Kimberlite | Beefy | XY Finance | Gamma | Yama Finance |
| Metis | Hermes Protocol | Tethys Perpetual | AAVE V3 | Hummus Weighted | Beefy | Stargate | Steer Protocol | QiDao |
| Finance | Lendle | Circuit Protocol | Stargate | Range Protocol | ||||
| Manta | Quickswap V3 | KiloEx | Layer Bank | Rehold V2 | Symbiosis | Steer Protocol | Goku Money | |
| zkSync Era | SyncSwap | Derivio | Reactor Fusion | Impermax Finance | Autoearn Finance | Symbiosis | ICHI | Overnight USD+ |
| Linea | SyncSwap | Satori | Mendi Finance | ReHold V2 | Stargate | Gamma | Overnight USD+ | |
| Arbitrum | Uniswap V3 | GMX V2 | AAVE V3 | Pendle | Beefy | Synapse | Gamma | Abracadabra |
| Optimism | Velodrome V2 | Perpetual Protocol | AAVE V3 | Aura | Beefy | Stargate | Gamma | Ethos Reserve |
TVL can further be enhanced by creating Dapps and platforms as below;
o Launch-pads : -e.g. Flockifi-Locker, zkBoost etc.
o NFT marketplace :- e.g. Arbitrum Gunball Protocol, zksync – intswap etc.
o Options :- Arbitrum – Hegic etc.
o Prediction market :- Arbitrum – WINR Protocol, Optimisim – Thales etc.
5. Staking, Earning & Burning Mechanisms:
Investors like to invest in tokens that have Earning through staking and burning mechanisms to make the supply scarce and rewarding. Suitable methods with community consensus and benchmarking competitors can be considered for implementation.
Conclusions:
Reaching the Top 100 Crypto rank may seem to be an optimistic task, but with strong commitment, Systematic planning and execution, community involvement, and honest work, it can be achieved or surpassed.