Leading liquid staking protocol for Cronos, Veno Finance, made its debut on the zkSync Era Layer-2 blockchain scaling solution. With its introduction, zkSync Era users may now directly stake their ETH tokens and obtain Liquid ETH (LETH) tokens, creating new opportunities for yield farming inside the platform’s decentralized finance ecosystem.
Users of zkSync may more easily support the Ethereum network thanks to the Veno protocol. It functions by creating a bridge between ETH tokens on the Ethereum mainnet and the zkSync Era, automating user staking and withdrawal of ETH. Users of zkSync Era may earn extra return on its DeFi protocols by staking ETH natively, for which they will get an equal number of LETH tokens.
As part of its roadmap, Veno intends to add its native VNO token to the zkSync Era blockchain in order to reward LETH liquidity providers. Holders of VNO tokens are urged to support LETH liquidity in a variety of ways. Depending on how much and how long they commit to locking up their tokens, users may lock their VNO into the Fountain and get incentives in the form of extra VNO. As an alternative, customers may lock their VNO into the Reservoir and get Real Yield incentives in ETH, which make up half of all the revenues Veno receives from ETH staking.
Users of zkSync Era may transfer their LETH-ETH-LP tokens into Veno Garden as part of an extra incentive mechanism to get more VNO rewards.
Additionally, Veno creates additional chances by giving customers an NFT receipt each time they take their LETH tokens out, thereby enabling instant access to unstaked assets. This NFT gives consumers a method to spend their funds before they become accessible as a proof of withdrawal. It is anticipated that when the Exit Queue for staked ETH expands, this functionality will become more and more helpful. If this occurs, it may take weeks or even months for staked Ethereum withdrawals to be processed, which means those tokens are not being used for long stretches of time.
Zimfony, Product Lead of Veno Finance stated:
“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. 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.”
With this announcement, Veno joins the ranks of the first native Ethereum liquid staking protocol, enabling native Ethereum staking and withdrawals on the zkSync Era blockchain. Veno is positioned to develop a protocol that has already seen substantial growth over the previous year by securing this first-mover advantage. For example, in the previous three months, Veno’s total value locked (TVL) has doubled, while in the last year, the number of unique stakers has grown tenfold.
After the introduction of its Veno Gardens platform, which offers VNO token holders a range of choices to optimize their income potential, Veno has reached yet another significant milestone with the extension to zkSync Era. In addition, Veno introduced its CRO Liquidity Strategy, which automatically harvests and compounds incentive rewards for users, and became the first to offer ATOM staking on Cronos.
One of the Ethereum blockchain’s fastest-growing L2 scaling solutions, zkSync Era allows the most widely used decentralized network in the world to rise to unprecedented heights. The use of zkSync Era has increased significantly due in large part to its innovative use of zero-knowledge proof technology, which allows for safe, quick transactions at a fraction of the usual cost.
