Veno Finance Launches First ETH Native Liquid Staking Protocol on zkSync
Hong Kong, Hong Kong, January 10th, 2024, Chainwire
Veno Finance, Cronos’ leading liquid staking protocol, announced its launch on the zkSync Era Layer-2 blockchain scaling solution. With its launch, users on zkSync Era can now stake their ETH tokens directly and receive Liquid ETH (LETH) tokens that open the door to new possibilities for yield farming in its decentralized finance ecosystem.
The Veno protocol enables zkSync users to support the Ethereum network in a simplified way. It works by bridging ETH tokens between the zkSync Era and Ethereum mainnet, automating the process of staking and withdrawing ETH on behalf of users. When zkSync Era users stake ETH natively, they’ll receive an equivalent amount of LETH tokens they can use to earn additional yield on its DeFi protocols.
To incentivize LETH liquidity providers, Veno is planning to introduce its native VNO token to the zkSync Era blockchain as part of its roadmap. VNO token holders are encouraged to provide liquidity for LETH in a number of ways. They can lock their VNO into the Fountain and earn additional VNO as rewards, determined by the amount and duration they commit to locking up their tokens. Alternatively, users can lock their VNO into the Reservoir and receive Real Yield rewards in ETH, which constitute 50% of all the ETH staking commissions earned by Veno.
An additional incentive mechanism allows zkSync Era users to deposit their LETH-ETH-LP tokens into Veno Garden to earn additional VNO rewards.
Moreover, Veno offers further opportunities by providing users with an NFT receipt whenever they withdraw their LETH tokens, effectively making it possible for users to access their unstaked assets immediately. As a proof of withdrawal, this NFT provides a way for users to utilize their funds before they become available. It’s expected that this feature will become increasingly useful over time as the Exit Queue for staked ETH grows. If this happens, withdrawals of staked ETH might take weeks or even months to process, meaning those tokens are not being utilized for extensive periods of time.
“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. This launch is a testament to our ongoing commitment to provide liquidity and amplify the utility of users’ staked assets,” said Zimfony, Product Lead of Veno Finance. “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.”
The announcement means Veno becomes the first native Ethereum liquid staking protocol to support native staking and withdrawals of ETH on the zkSync Era blockchain. By obtaining this first-mover advantage, Veno is poised to grow a protocol that has already witnessed significant expansion over the last year. For instance, the total value locked (TVL) on Veno has doubled over the last 3 months, while its number of unique stakers has increased by 10x over the past year.
The expansion to zkSync Era represents another key milestone for Veno, following the launch of its Veno Gardens platform that provides various options for VNO token holders to maximize their earnings potential. Other recent developments include Veno becoming the first to enable ATOM staking on Cronos, and the introduction of its CRO Liquidity Strategy, which automatically harvests and compounds incentive rewards for users.
zkSync Era is one of the fastest-growing L2 scaling solutions for the Ethereum blockchain, enabling the world’s most popular decentralized network to scale to untold heights. Its pioneering use of zero-knowledge proof technology enables zkSync Era to perform rapid and secure transactions while reducing fees to a fraction of the cost, and has played a key role in growing its adoption.
About Veno Finance
Veno Finance is a liquid staking protocol on the Cronos chain and was recently launched on zkSync Era. Veno enables its users to stake their $CRO, $ATOM or $ETH and receive an Auto-compounding, yield-bearing receipt token $LCRO, $LATOM or $LETH respectively on each chain. The receipt $LCRO token is designed to maximize composability by automatically accruing CRO, ATOM or ETH staking yield value and can be used freely across the Cronos and zkSync Era DeFi ecosystems. Veno Finance offers an NFT receipt during the waiting period that can be traded on NFT platforms within the Cronos and zkSync Era ecosystems, providing an additional liquidity channel for users.
Positioned as a vertically integrated liquid staking protocol, Veno Finance aims to achieve cost savings by leveraging its own node infrastructure and/or that of its partners. Key points of differentiation include: enterprise-grade node set-up, deep expertise in running node infrastructure, and an insurance module to help secure user funds in the unlikely event of a slashing penalty.
Veno Finance is incubated by Cronos Labs – the blockchain startup accelerator that helps builders to create user-friendly applications on the Cronos chain and to drive mainstream adoption of Web3.
