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Staking Circle
Staking Circle
May 31, 2024
9 min read

LRT Protocols Deep Dive w/ Zero-G Finance

LRT Protocols Deep Dive w/ Zero-G Finance

Zero-G has announced its multi-chain liquid restaking protocol, which aims to handle various Layer 2s while providing a user-friendly experience with features such as one-click restaking.

This summer, Nick announced the development of a native governance token and a token airdrop, rewarding early depositors during the open beta phase. The emphasis is on community-centric token distribution and strategic collaborations to grow TVL and ensure strong integrations.

For more information and updates, follow Zero-G's progress on Discord and Twitter, and check out the highlights below:

X Spaces: LRT Protocols Deep Dive with ZeroGFinance

YouTube: LRT Protocols Deep Dive with ZeroGFinance

Spotify: LRT Protocols Deep Dive with ZeroGFinance

Speakers:

Index:

  1. Zero-G Finance Overview
  2. Zero-G Finance Inspiration
  3. Team Background
  4. Zero-G Unique Technology
  5. Zero-G Competitive Edge
  6. Future Token and Airdrop
  7. Distribution Model
  8. Partnerships and Integrations
  9. Community Engagement and Updates
  10. Developer and User Support
  11. Short-term Goals
  12. Risk Management Strategy
  13. Open Beta and Tokenomics Release

1. Zero-G Finance Overview

  • Nick described Zero-G as a multi-chain LRT protocol with functions similar to protocols like Renzo, Kelp, EtherFi, and Puffer:

"So Zero-G is a multi-chain LRT protocol. We function very similar to the protocols that exist like Renzo, Kelp, EtherFi, and Puffer. Essentially, we're using cross-chain transfer protocol technology with a bridge called Connext, similar to Renzo, to enable restaking across a variety of different L2s.

  • Current support includes Mainnet, Arbitrum, Mode, Base, with plans for Optimism, Linea, and Fraxtel, with Zero-G being the first to offer restaking on Fraxtel:

"So at the moment, we support restaking on Mainnet, Arbitrum. Optimism, Mode, Base, Linea is coming soon. Fraxtel is coming soon. We'll be the first to offer restaking on Fraxtel.

  • The platform aims to provide easy access to EigenLayer and simplify the restaking process for users, targeting a user-friendly experience for easy access and one-click restaking:

"_ We're just trying to build a gateway for users to be able to access EigenLayer from any position, really. Whether that be a cost-reduced basis using an L2, restaking on mainnet with native restaking, or whatever it might be, we have a lot of variety. And again, we're really just trying to make something that's a product that is widely accessible to users._”

2. Zero-G Finance Inspiration

  • Nick stated that Zero-G may have joined the liquid restaking space later than some, but the industry is still in early development stages:

"_ In terms of discovery, especially for retail users, we're still fairly new and there are still a relatively low amount of protocols that are competing in the space. You have your big 10, I would say. I think there's in total maybe 10 to 15 protocols that are actually offering liquid restaking._”

  • He talked about the importance of creating a user-friendly platform to teach retail users about EigenLayer and restaking:

"So essentially we just wanted to make a solution that would be easy. Easy to use, the UI is very simple, and our user experience is all centered around one-click restaking. And yeah, it mostly came from the fact that we wanted to basically build something that would be not only more accessible with having L2s available to restake from but easier to use, I would say is a good way to put it.

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3. Team Background

  • Nick shared his experience with his previous project, Perfect Swap, a composable yield platform on Arbitrum transitioned from a VE33 DEX to yield, and his web 2.0 background leading a product development team at a large SaaS company:

"Yeah, so previously I launched a composable yield platform on Arbitrum called Perfect Swap. It originally started as a VE33 DEX, then we transitioned into yield. So that's been up since December of last year. And my personal background, I come from Web 2.0. I was leading a product development team at a very large SaaS company.

  • Nick's web 2.0 experience is seen as an advantage in creating intuitive products for web 2.0 users transitioning to DeFi:

"And then I've been in DeFi for about two years full time where I was able to leave my day job. And yeah, I'm pretty versed and pretty experienced, you know, with leading a development team.

4. Zero-G Unique Technology

  • Nick explained that the core of Zero-G’s tech includes the use of smart contracts that automate the transfer of assets from L2s and LRT tokens like FRX ETH on Fraxtel to EigenLayer via Connext:

"Essentially, the highlight of the protocol is that the process of us taking your assets from an L2 to mainnet and then depositing into Eigenlayer, that entire process is automated by smart contracts (...) FRX ETH on Fraxtel, and then we will essentially use Connext on the back end to bridge that over to mainnet, and then essentially have that deposited into Eigenlayer as an LST.

unnamed.png (Source)

5. Zero-G’s Competitive Edge

  • Nick mentioned that not all liquid restaking protocols are multi-chain, making Zero-G unique as it supports more L2s than most other protocols and is automatic, permissionless, and scalable:

"I think it's important to mention also not every protocol is multi chain. So you have, you know, the competition for multi chain LRT protocols is even smaller than the entire competition for just LRT protocols itself.

  • Zero-G stands out by offering more chains than other protocols, it was on Optimism a month ago in open beta and got to Base shortly after Renzo:

"Another differentiation is we offer a lot more chains than others do. Before Kelp just released Optimism and launched on Optimism, we were on Optimism about a month ago. (...) We also got to Base shortly after Renzo did. You know, I've been building this since January now,

6. Future Token and Airdrop

  • A Zero-G governance token, different from the zgETH LRT token, will be introduced, allowing users to vote on how protocol deposits are used and on other strategic decisions:

"Essentially with that Zero-G token, you can use the utility to vote for delegating deposits to certain operators, to integrating new AVSs. whatever strategy that you want to see the protocol take on in terms of yield-bearing and whatever you essentially want us to use deposits for, you'll be able to use that token to vote for that and have some real governance.

  • The token airdrop is planned for the summer, timed with milestone TVL achievements:

"That would be probably sometime this summer. And that's more than likely going to be when we cross the significant TVL mark that we actually launched the token.

  • Participants who deposit during the open beta will get a 3 times point boost to redeem for the airdrop:

"It's a good opportunity and I think you know being an open data has kind of staggered the growth a bit but we'll probably be doing a big marketing push in the next few weeks here.

unnamed.png (Source)

7. Distribution Model

  • Nick said that token distribution will focus on the community over VC and internal allocations, aiming for more alignment with community interests than other protocols:

"I would say I can share as much as saying that the community will definitely come first within the distribution. We are not going to be greedy in terms of having a large allocation set to VCs and ourselves. That's definitely something that you won't expect.

8.Partnerships and Integrations

  • Largest operator collaborations include P2P and EverStake, with additional nodes possibly from Figment:

"So we're working with P2P, EverStake, we'll be integrating all nodes and probably Figment for operators. So at the moment, we have EverStake and P2P as confirmed partners.

  • DeFi collaborations like Zircuit will unfold as TVL increases, and Zero-G aims for DeFi integrations such as Pendle and Curve, contingent on reaching certain TVL thresholds:

"In terms of DEXs and some of the DeFi integrations, the issue is like, you know, you have Pendle and obviously want to get listed on Pendle, Zircuit, all there. But we have to reach a certain TVL point or TVL mark to be able to qualify for that.

  • They have talks with Velodrome and Aerodrome about whitelisting on base and optimism for zgETH token:

"We talked to the Velodrome and Aerodrome guys about whitelisting on base and optimism for the zgETH.

9. Community Engagement and Updates

  • The main channels for Zero-G updates are their Discord channel and Twitter, with their mirror page following:

"Yeah, so we currently have a, you know, solidly set up Discord community that I would encourage everybody to join. That's where most of the communication and updates kind of go through first. And then second to that would be Twitter. And third would maybe be our mirror page.

10. Developer and User Support

  • Zero-G’s full technical documentation is available, detailing the protocol's technical architecture for those interested in understanding the protocol's workings:

"Yeah, so we have our entire documentation that's already built out where you can kind of see the technical architecture and the technical mapping of everything. So if you're interested in that, definitely go ahead and take a look.

11. Short-term Goals

  • Nick announced they've completed the development of unstaking and withdrawing features, which is a unique offering as not many protocols have enabled this yet:

"We just now wrapped up our development of unstaking and withdrawing. So we basically finished up that feature. And right now we're waiting for it to go through audit to have it approved (...) So we will have unstake and a withdraw. probably within the next two weeks, I would say, at most.

12. Risk Management Strategy:

  • Nick explained that they work closely with operating partners P2P and EverStake for anti-slashing strategies and delegate the risk of slashing to them:

"_ Yeah, so we essentially talked very, very, very closely with our operating partners with, you know, P2P and EverStake for anti-slashing and how anti-slashing will work._”

  • The strategy includes avoiding operators with slashing risks and relying on those with proven track records in anti-slashing methods or strategies:

"We're not trying to work with any operators that we feel have a risk for slashing. You know, we like to kind of look at a proven track record and see what their measures are put in place for anti-slashing techniques or strategies.

  • They are working with Code4rena to audit all their protocols for increased security:

"We have as many audits as you really can have for a project that hasn't raised any money or hasn't launched yet fully. We're working closely with Code4rena to audit everything that we do.

13. Open Beta and Tokenomics Release

  • Zero-G is currently in an open beta phase, offering 3 times the farming points post-launch:

"Zero-G is currently in an open beta phase offering 3 times the farming points post-launch and plans to share tokenomics information within the next month.

  • Nick encouraged new users to participate in the beta to benefit from early involvement and mentioned that this could be a chance for those who have missed out on other protocols' launches or airdrops:

"Zero-G will offer a token airdrop in the summer for early depositors in the open beta with a 3x point boost for redemption. The airdrop token will have governance utility

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