Project Details
Our project aims to develop universal zap technology, which are smart contracts and associated interfaces that facilitate entering and exiting any protocols or smart contracts, from any asset on any chain in one transaction. Our goal is the harmonisation of the cross-chain experience, which we see as closely aligned with Optimism’s Superchain vision
What are you building?:Our project aims to develop universal zap technology, which are smart contracts and associated interfaces that facilitate entering and exiting any protocols or smart contracts, from any asset on any chain in one transaction. Our goal is the harmonisation of the cross-chain experience, which we see as closely aligned with Optimism’s Superchain vision.
Beefy has been pushing in this direction for some time now. Initially, we integrated zap technology into our protocol for instant entry into our autocompounding vaults, without the need to deal with swapping assets and entering liquidity pools (zap V1). V1 required users to hold one of the underlying assets of the relevant vault. In January, we launched a second iteration in partnership with 1inch (zap V2), which allows users to enter our protocol from their choice of blue chip assets and stables. We achieved this by automating swaps for the deposit asset through 1inch’s swap aggregator, before feeding into zap V1.
The next iteration of Beefy’s zap (zap V3) is a versatile intermediary, which enables users to enter any Beefy vault from any bluechip cryptoasset or stablecoin in just one transaction. V3 rewrites the existing V2 framework in two key ways: (1) by flexibly routing swap transactions through any of a selection of different routers, such as Firebird or Kyber; and (2) by facilitating deposits into a much wider range of protocols than were previously available (e.g. Curve, Balancer, etc). Where previous generations of our zap tooling were built for Uniswap V2-type liquidity pools, V3 will cover all manner of designs, giving us enormous flexibility to build with other projects. We are targeting completion of all development, testing, auditing and deployment over the next few months (and rollout well under way by the end of 2023).
Beyond this immediate goal, we are also working to integrate bridging services (and bridge aggregators) into our zap processes. This unlocks the final piece of the puzzle: Once complete, each of the separate zap mechanisms can be combined in infinitely-many combinations to allow zaps from anything into anything else. We aim to build open-source tooling for each iteration of zap, with the aim of developing common standards for universal zap technology across the industry.
Our goal with this grant proposal is to involve Optimism (and other stakeholders in the OP Stack and optimistic rollup technology) as key partners in our efforts, to support the development and dissemination of this technology. We hope that by focusing our efforts on the Optimism ecosystem, we will succeed in generating the critical mass of engagement from users and partners which is needed to fully explore, test and deploy new zap tooling. We hope this project’s success will set a precedent for the new technology, helping to gradually spread it across the entire DeFi universe.