ZKsync sunsets liquidity program amid bearish market

ZKsync's DeFi Steering Committee (DSC) said it volition not renew ZKsync Ignite, its liquidity reward program, arsenic the task shifts its absorption to broader web expansion.

The DSC confirmed that Ignite’s 2nd play volition not proceed and that the programme volition beryllium discontinued connected March 17. This besides cancels the reward allocation for play 6, the last signifier of the program’s archetypal season.

ZKsync said it would absorption its resources connected its Elastic Network, an architecture that aims to alteration the level into an ecosystem of interconnected zero-knowledge (ZK) chains. “Our semipermanent imaginativeness for ZKsync is progressively centered connected the Elastic Network, and we privation to absorption our resources to accelerate this becoming a reality,” the task stated. 

It said that pouring its resources into a single-chain programme does not align with this interoperability goal. 

Cointelegraph reached retired to Matter Labs, the institution down ZKsync, for comment, but had received nary effect astatine the clip of writing.

Source: ZKsync Ignite

Navigating a bearish crypto market

The squad acknowledged that existent marketplace conditions influenced the determination to extremity Ignite.

“To enactment sustainable, we’re tightening our absorption and spending smarter alternatively than warring headwinds,” the squad said. 

ZK tokens performed good successful 2024, reaching a precocious of $0.26 connected Dec. 8. However, ZK prices failed to support their highs, experiencing continued merchantability unit arsenic marketplace conditions worsened. The token presently trades astatine $0.06, a 76% driblet from its terms successful December. 

ZKsync token’s 1-year terms chart. Source: CoinGecko

Related: ZKsync targets 10K TPS and sub-zero fees by 2025 roadmap goals

ZKsync Ignite boosted the project’s TVL to $270 million

According to ZKsync, the programme surpassed its extremity of driving DeFi full worth locked (TVL) to $100 million. The programme helped thrust TVL to implicit $270 million, making trading connected the concatenation much seamless. However, DefiLlama information shows that ZKsync’s TVL is presently down to $139 million. 

ZKsync's full worth locked. Source: DefiLlama

The Ignite programme primitively planned to allocate 300 cardinal ZK tokens successful a span of 9 months to DeFi users who would supply liquidity to cardinal token pairs. The archetypal play was scheduled from Jan. 6 to March 31, allocating 100 cardinal tokens worthy astir $21 cardinal during launch. At existent ZK prices, 100 cardinal tokens are lone worthy $6.8 million. 

Apart from ZKsync, the broader crypto marketplace is besides experiencing an industry-wide downturn, with apical crypto assets similar Bitcoin (BTC) and Ether (ETH) struggling to support prices. 

Magazine: Vitalik connected AI apocalypse, LA Times both-sides KKK, LLM grooming: AI Eye