Swiss startup Zyfi recently secured $2 million in a private funding round to further develop its innovative Paymaster-As-A-Service platform. The investment aims to propel Zyfi’s gas abstraction layer on zkSync, which allows any tokens to be used as gas for transactions. The funding round saw participation from industry leaders like Everstake Capital, Tenzor Capital, Criterionvc, and more. With over 815,000 transactions processed and 110,000 users benefiting from gasless flows on zkSync, Zyfi has demonstrated its appeal and capability.
Zyfi’s solution aims to address critical DeFi bottlenecks by simplifying transactions through native account abstraction on zkSync. This technology allows users to pay gas with any ERC-20 token or have dApps sponsor gas costs using custom logic. By eliminating the need for users to manage Ethereum for gas fees, Zyfi democratizes access to DeFi services and enhances the overall user experience. The platform has successfully integrated with major protocols like Zerolend, Pancakeswap, and various NFT collections on zkSync.
The $2 million investment will be used to support the development of software development kits (SDKs) and paymaster services for dApps. Zyfi also plans to drive utility for governance token holders and advocate for research on account abstraction across various blockchain networks, including the implementation of EIP-7702. The platform’s API abstracts protocol complexities, allowing developers to focus on building their products and promoting broader on-chain engagement.
The trend of ZK rollups gained significant traction in 2024 as projects looked to offload activities from the Ethereum mainnet for scalability and confidentiality. ZK rollups enable validators to verify transaction authenticity without revealing excessive information, maintaining user privacy. While not inherently confidential, some ZK rollup projects enhance financial privacy and support anonymous voting by concealing user information. Adoption of ZK rollups began less than two years ago, with projects like Polygon being early adopters.
Matter Labs, the developers of zkSync, decided to abandon their efforts to trademark the term “ZK” following criticism from researchers who believed ZK technologies should be accessible to everyone. The growing popularity of ZK rollups in 2024 transformed “ZK” into a recognizable brand, with projects focusing on enhancing scalability and privacy. Zyfi’s innovative approach to gas abstraction on zkSync and its dedication to improving DeFi experiences for users positions the platform as a key player in the evolving DeFi landscape.
In conclusion, Zyfi’s recent funding round and focus on gas abstraction on zkSync highlight the platform’s commitment to revolutionizing the DeFi ecosystem. By simplifying transactions, eliminating gas fees, and enhancing user experience, Zyfi aims to empower developers to create seamless DeFi experiences for users. The support from industry leaders and the strategic utilization of the $2 million investment further solidify Zyfi’s position as a key player in the ZK rollup trend and the broader blockchain ecosystem.
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