Avalon Labs (AVL) revolutionizes Bitcoin finance with BTC-backed stablecoin lending, CeDeFi & DeFi solutions. Borrow, stake & earn with BTC-based assets.

 (BTC)’s financial ecosystem, known as 

, has experienced significant growth over the past few years, with a number of sidechains, rollup platforms and cross-chain applications helping users leverage their BTC funds for 

 (DeFi) operations. One of the newer BTCFi solutions on the market is Avalon Labs, a multi-chain platform focused on Bitcoin-backed 

Avalon lets users borrow stablecoins by providing collateral in BTC or BTC-related assets, such as Bitcoin-pegged tokens and 

 of Bitcoin. Users can access funds at fixed repayment rates, ensuring stability in the otherwise volatile crypto finance world. This stability, in turn, drives the more active use of Bitcoin-backed assets in the 

Importantly, Avalon Labs has secured access to billions of dollars in accessible stablecoin funds from centralized finance (CeFi) institutions, helping it act as a key bridge between the worlds of traditional and crypto finance.

 (AVL) is a decentralized BTCFi lending platform that lets users borrow stablecoins by supplying collateral in the Bitcoin cryptocurrency or in BTC-related crypto assets.

 The platform also provides opportunities to earn yield by supplying crypto funds to several liquidity pools. The platform's flagship asset is the USDa stablecoin, backed by Bitcoin.

Avalon also offers other lending opportunities via two primary modes: CeDeFi and DeFi. The CeDeFi offering allows users to access funds in the 

 (USDT) stablecoin, while the DeFi component is made up of three lending and borrowing pools — based on BTC and BTC's liquid staking derivatives, 

Avalon Labs has implemented a series of risk mitigation measures in order to protect its users and ecosystem. Measures focusing on the lending mechanism include the requirement for overcollateralization of all loans, and a rigorous liquidation procedure activated when the 

 (LTV) ratio drops below sustainable levels. Platform-wide risk mitigation measures include regular internal and external security audits, and AI-driven 

Avalon Labs operates on multiple blockchain platforms, including 

, with plans to expand to more decentralized networks in the future.

The project conducted its seed round fundraising in March 2024, and actively entered the BTCFi niche in November 2024 with the launch of its USDa stablecoin. As of the time of writing in early February 2025, the platform is preparing for the launch of its native token, AVL.

USDa is Avalon’s Bitcoin-backed stablecoin, designed to help BTC holders put their funds to active use in the DeFi ecosystem. By providing Bitcoin-based collateral, borrowers can mint USDa, which is freely exchangeable with the USDT stablecoin at a 1:1 ratio. As such, USDa is indirectly pegged to the U.S. dollar via a fixed-rate USDT conversion mechanism.

By locking their collateral and requesting USDa, users create so-called collateralized debt positions (CDPs) — an overcollateralized crypto debt instrument first popularized in the DeFi industry by 

Besides the stable, USD-pegged rate, USDa boasts several other benefits. First, borrowers can access fixed-rate interest repayments for their debts, enjoying certainty in planning their payments to the platform. Secondly, early finalization of debt doesn’t carry a financial penalty. Importantly, USDa can be put to use across different chains, thanks to its utilization of the 

CeDeFi Lending is a major component of Avalon Labs' focus on Bitcoin-backed loans. The project claims to have secured access to billions of dollars in USDT and 

 (USDC) funds at traditional finance institutions. This allows Avalon users to borrow funds in these popular stablecoins at fixed rates of 8 –10%. As of late January 2025, Avalon's CeDeFi lending component allows you to borrow USDT by providing collateral in Ignition FBTC (FBTC), a Bitcoin-pegged omnichain cryptocurrency. Other collateral and borrowing assets (e.g., USDC loans) might also be introduced in the future.

Avalon Labs’ DeFi lending component is represented by three main types of liquidity pools, against which users can lend and borrow assets. The BTC LSD Pools are made up of BTC and BTC-based liquid tokens, with each liquid token isolated to its own independently operating pool. There are also RWA Lending Pools, which consist of RWA tokens and stablecoins. The third type is the General Pool, containing mainstream assets like BTC, ETH, popular stablecoins and more.

The platform separates each asset, such as each liquid token or RWA, into its own isolated pool. Pool isolation helps structure risk mitigation measures carefully tailored to each asset.

For the first few months on the market, Avalon has operated without a native token. The project is currently gearing up for the introduction of its 

, AVL, to be launched sometime in Q1 2025. AVL will support not only governance but also a range of other functions. One of these is staking. By staking AVL, users will be issued sAVL, an asset that will be used directly for governance processes. sAVL holders will participate in votes to decide the rules and future direction of the platform. Staking will also let them accrue crypto rewards in AVL tokens.

Additionally, AVL will provide access to exclusive features, perks and fee rebates on its platform.

The AVL token will be issued with a total supply of 1 billion. Planned supply allocation shares are as follows:

 platform. Bybit Pre-Market Spot is an over-the-counter (OTC) trading platform that allows you to acquire promising new cryptocurrencies before listings on Bybit's main Spot trading market, letting you access these assets at potentially discounted rates.

The AVL listing on Pre-Market Spot lets you speculate on the new token's potential. Naturally, before investing in any asset (whether it's offered via Pre-Market Spot or other trading environments), you’re encouraged to 

 on the project's background, operational details and future potential.

The sphere of financial solutions for the Bitcoin blockchain is quickly gathering pace, with several projects in the cryptocurrency market aiming to help Bitcoin holders put their funds to active use. Avalon Labs is a key initiative within this niche of the cryptocurrency industry, offering a much-needed service — stablecoin issuance backed by the security of Bitcoin. 

Early indicators suggest that this project has significant potential within the Bitcoin ecosystem, as well as within the wider crypto ecosystem. Of particular importance is the project team's claimed access to billions of dollars in USDT and USDC funds at traditional institutional finance providers. A thorough risk management framework — supported by regular audits, AI-driven monitoring, and sound debt collateralization and liquidation mechanisms — also provides further assurances to the user community.

The benefits offered by Avalon Labs are clear-cut, but more details on access to the billions of dollars at traditional finance providers would certainly contribute to user trust in the platform, something that's always helpful for any young web3 startup. Currently, however, the main focus is on the platform's imminent native token launch. AVL's token generation event (TGE) will be a significant evolutionary step in the life of this promising BTCFi project.

Intermediate

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Avalon Labs (AVL): Driving Bitcoin’s Financial Evolution

Helium Mobile is revolutionizing telecom with three new plans, including the Zero Plan.

Daily Top Performer — Ampleforth (FORTH)

The S&P 500 rose 0.72% on Tuesday, but futures fell on Wednesday after Alphabet’s weak earnings while investors await more earnings reports. Gold hit a record $2,845.14 as U.S.-China tariffs fueled safe-haven demand. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 4.35%, with Bitcoin and Ether dropping by 2.52% and 6.25%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is FORTH, which surged nearly 49.1% following the announcement of Ampleforth’s Evergreen Cycle, a decentralized solution for resilient DeFi treasuries.

Ampleforth (FORTH), founded in 2018, is a stablecoin that adjusts its supply daily through “rebasing” to maintain price stability, ensuring holders keep their proportional ownership. Ampleforth 

 AMPL and SPOT as decentralized alternatives for DeFi treasuries, reducing reliance on centralized stablecoins. AMPL’s elastic supply and SPOT’s low volatility offer DAOs a resilient treasury strategy through the "Evergreen Cycle"—buying AMPL in bullish markets and rotating into SPOT during downturns. This system enhances liquidity, mitigates market cycle risks, and enables DAOs to act as decentralized “micro central banks,” reinforcing long-term stability in DeFi.

Check Out the Latest Prices, Charts, and Data of 

Helium Mobile is revolutionizing telecom with 

, including the Zero Plan, which offers free mobile service (3GB data, 300 texts, 100 minutes) while rewarding users with Cloud Points for sharing anonymized data. These points can be redeemed for gift cards and experiences. Other plans include the Air Plan ($15/month) for 10GB and the Infinity Plan ($30/month) for unlimited data. Helium Mobile combines community-powered networking with the nation’s largest 5G coverage, making mobile service more affordable, flexible, and rewarding. The plans are currently invite-only, with a waitlist available.

Yesterday, BTC Spot ETFs recorded $91.7M in total inflows, with $72.2M from non-GBTC and $19.5M from GBTC.

, a decentralized social network platform, is hinting at a potential airdrop for users. To increase chances of receiving the airdrop, users should sign up on the platform, create a Town, deposit ETH, and join other Towns to earn points. Towns raised $25.5M in funding and operates on the Caldera network. Tipping others and daily engagement may boost rewards.

Beginner

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Helium Mobile Introduces Free Plan and Rewards for Staying Connected

Haedal unlocks liquidity for staked SUI by converting it into haSUI tokens, enabling users to earn rewards while freely participating in DeFi activities.

vWhat if you could earn staking rewards and keep your crypto liquid? Haedal, a pioneering 

 blockchain, turns this possibility into reality. Haedal eliminates the trade-off between 

 and accessing liquidity by transforming staked SUI tokens into haSUI — a yield-bearing asset usable across 

 (DeFi). This article explores how Haedal simplifies staking, enhances capital efficiency and unlocks superior returns while fueling the growth of the Sui ecosystem.

Haedal is a liquid staking protocol on the Sui blockchain that allows users to stake SUI tokens, mint haSUI (a yield-bearing 

) and earn additional rewards through DeFi integrations. It simplifies participation in staking while maintaining liquidity for decentralized finance activities.

Haedal was created by a group of anonymous blockchain enthusiasts and experts who recognized the need for a more efficient and secure way to stake SUI tokens on the Sui blockchain. Their vision for Haedal was born from the desire to improve the DeFi ecosystem by offering a simple, one-click liquid staking solution. This approach allows users to earn rewards while still keeping their assets flexible and liquid.

Haedal bridges the gap between staking and decentralized finance, making it easier for users to participate in various DeFi activities without sacrificing security or efficiency. By doing so, Haedal boosts user engagement within the Sui ecosystem and also helps strengthen and expand the broader DeFi ecosystem, paving the way for greater blockchain adoption.

Haedal seeks to address the major issue of lack of liquidity in traditional staking models, whereby users must lock their assets for fixed periods. This restricts their ability to use those funds for other investments or DeFi activities, such as 

 or governance participation, reducing flexibility and deterring engagement. 

Another barrier is the complexity of staking management. Selecting validators, monitoring performance and handling technical processes can overwhelm newcomers — and even experienced users. This steep learning curve limits broader adoption and discourages participation in ecosystem growth. 

Also, many staking systems suffer from inefficiency and security risks. Outdated practices or centralized control can expose users to asset loss and/or downtime, while fragmented platforms make participation cumbersome. These vulnerabilities erode trust and hinder the scalability of decentralized networks. 

 technology to tackle liquidity constraints, simplify user experience and enhance security, aiming to create a more accessible and efficient ecosystem for staking and DeFi integration.

Haedal deploys the following advanced mechanisms to make staking SUI tokens more flexible and user-friendly. 

haSUI is a versatile token that unlocks liquidity for users who stake their SUI tokens through Haedal. When users stake SUI, they receive haSUI at a 1:1 ratio, acting as a dynamic “receipt” for their staked assets. Unlike 

, in which funds are locked and unusable, haSUI retains liquidity, allowing users to trade, lend or use it as collateral in DeFi apps while their original SUI continues earning staking rewards. 

Over time, haSUI’s value grows as it accumulates rewards from validators securing the Sui blockchain. This dual functionality bridges the gap between passive income and active participation in DeFi, letting users maximize their crypto holdings without compromise. 

Haedal streamlines staking by automating the entire process. Users deposit SUI tokens into the protocol, which then delegates them to trusted, high-performing validators on the Sui network. This eliminates the need for users to research validators or manage technical details manually. The system continuously monitors validator performance, reallocating stakes to optimize returns and minimize risks. 

Unlike more rigid staking models, Haedal’s protocol imposes no lockup periods, so users can unstake at any time by swapping their haSUI back to SUI. This flexibility, combined with automated efficiency, makes staking accessible to everyone, from newcomers to institutions, while ensuring their contributions actively support Sui’s network security. 

The Random Vault adds an element of chance to traditional staking, creating a fun and community-driven experience. Users deposit SUI into the vault for one week, during which their funds are delegated to validators. At the end of the week, all staking rewards generated by the vault are pooled and distributed to five randomly selected participants. This gamified approach injects some excitement while also diversifying risk by spreading stakes across multiple validators automatically. 

Participants enjoy a hands-off experience, requiring no active management, while gaining exposure to potential bonus rewards. The Random Vault democratizes staking, offering both seasoned users and casual participants a fresh way to engage with the Haedal ecosystem. 

The Haedal Market Maker (HMM) ensures seamless trading and liquidity for haSUI tokens, addressing common challenges in DeFi: price volatility and accessibility. HMM operates by providing deep liquidity pools for haSUI trading pairs, which stabilizes prices and minimizes slippage during trades. This means users can buy or sell haSUI quickly and at fair market rates, even during periods of high demand. 

HMM maintains a tight peg between haSUI and SUI and enforces trust and usability, making the token practical for everyday DeFi activities, such as swapping, lending and/or collateralizing loans. This infrastructure not only benefits individual users, but also strengthens the broader Sui ecosystem, encouraging adoption and enabling institutions to participate confidently in the decentralized finance realm. 

Haedal has achieved significant milestones, including launching its liquid staking protocol, growing its 

Looking ahead, the project aims to expand its product offerings, improve scalability and strengthen its role in the Sui ecosystem. 

Haedal redefines staking on Sui by merging liquidity, simplicity and innovation. By transforming staked SUI into yield-bearing haSUI tokens, it unlocks DeFi opportunities without sacrificing rewards or security. Features such as automated staking, gamified vaults and robust liquidity solutions empower users to maximize earnings while supporting network growth. 

With a clear road map and a community-driven ethos, Haedal is positioning itself as a catalyst for accessible, efficient decentralized finance, bridging traditional asset holding with the dynamic potential of blockchain.

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Haedal: Unlock Superior Returns With Sui Liquid Staking

Loopy is a Sui-based meme coin inspired by a beaver with a distinctive pink hue that’s featured in the Pororo the Little Penguin cartoon. Learn more here.

If you want a comprehensive crypto portfolio, it pays to check out 

. Though these coins might not be worth as much as major cryptos, their potentially drastic price swings can result in big profits for investors. One intriguing 

 meme coin to check out is Loopy, a cartoon-themed coin (inspired by a popular television show) that’s had an interesting growth pattern of late. To see if Loopy is the right investment for you, we’ll take a look at its tokenomics and pricing trends. 

 is a meme coin based on the Sui blockchain. It's inspired by a beaver with a distinctive pink hue that’s featured in the 

 cartoon. Much like the character herself, the Loopy coin hopes to showcase the values of friendship, hope and harmony.

On a technological level, Loopy works similarly to other meme coins. Loopy uses the Sui blockchain as the foundation for its system. This delegated 

 network is known for its scalability and speed. Loopy takes advantage of Sui's features by using its standardized 

 and token creation protocols. Since Loopy doesn't have to run its own blockchain, it can focus more on the marketing side of operating a cryptocurrency.

In order to increase its token's market capitalization, Loopy has heavily integrated itself into social media. Loopy runs both a Telegram channel and a 

 where it interacts with its audience. These sites post memes about gentlehearted Loopy, encouraging users to share their own. 

In addition to marketing the Loopy coin, these social media sites also help to operate the entire Loopy community by tracking member participation and using these metrics to determine eligibility for 

Loopy's token, with the symbol LOOPY on most exchanges, is a traditional meme coin that has no utility outside of entertainment. Its sole purpose is to appeal to fans of gentlehearted Loopy in 

 The Loopy coin does have a somewhat higher supply than many other tokens, with a 

. Half of the tokens were distributed to community members in an 

, while the other half were used for token liquidity. The majority of these tokens are circulating now, so the coin's current circulating supply is close to its total supply of 1 trillion tokens.

Loopy was released back in October 2024, so it's already been the subject of a few newsworthy events. The coin was initially selling for around $0.000012, but a decline in trading volume led to a sudden price drop, to around $0.0000035 in early November 2024. Fortunately, fans of the beaver with the distinctive pink hue rallied behind it, and it surged to an impressive all-time high (ATH) of $0.000013 by mid-November. 

When the Loopy token’s price increased by over 763% in just 24 hours, it began receiving a lot of attention. The coin's market cap reached $17 million, and it was briefly one of the top Sui meme coins. Since its heyday, the Loopy token has had some struggles. Starting in January 2025, coin prices dropped to as low as $0.00000004 as its market cap plummeted. 

However, these unusually low prices have been just as noteworthy as the coin's ATH. Loopy fans who were getting priced out of owning the token have been expressing interest in it once again, due to its more affordable prices. The trading volume of Loopy might look a little low now, but it's no longer in free fall, as it was in early January 2025. Some market analysts even suggest that LOOPY’s price may reach 

LOOPY tokens have a high current circulating supply, but not all exchanges support this token yet. It's primarily available through smaller, decentralized exchanges. However, if you prefer a more convenient experience, check out the 

. This service provides access to DEX offerings, while maintaining the same great service that all Bybit users can count on. Purchasing LOOPY through Bybit is as simple as checking the current price, entering the number of LOOPY you want to buy and confirming your purchase. 

LOOPY's market cap and 24-hour trading volume have certainly declined from the coin’s heyday, but it still holds some promise for investors. The low current price means that it's possible to buy a lot of LOOPY without spending much money. This can result in big profits if the coin experiences even minor price increases. Furthermore, most pricing analyses suggest that LOOPY's market cap could recover in the future.

However, don't forget that this sort of investment can be risky. Some meme coins generally fail to return to their ATHs after brief enthusiasm during their launches. Loopy's team hasn't been promoting their coin as much lately, so whether or not LOOPY can recover will rely mostly on the coin's fanbase. While investing a bit of extra money you have in LOOPY could be fun, it’s not recommended that you invest money you can’t afford to lose. Meme coins are always volatile, and it’s essential to use some caution and 

 any time you invest in tokens such as LOOPY.

While LOOPY tokens might not have the highest 24-hour trading volume anymore, this meme coin is still backed by a dedicated community. Its ability to appeal to 

fans with positivity and humor has helped it stand out from other Sui meme coins. Loopy is a great example of how a simple yet fun concept can end up appealing to thousands of investors.

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Loopy (LOOPY): The Most Adorable Meme Coin on Sui

Blockchain

Find out how ZK-rollups change the game by making transactions on the Ethereum mainchain more efficient and boosting overall scalability.

 and most blockchain projects. As the number of computationally intensive processes on the main blockchain increases, it clogs up the network and makes transactions slow and expensive. This hurts user experience and the Ethereum ecosystem as a whole. However, there may be a solution to the scalability problem for Ethereum: ZK-Rollups. This article will introduce you to ZK-Rollups and their benefits and limitations, and compare them to other scaling solutions while examining the best ZK-Rollup coins.

ZK-Rollups, or zero-knowledge rollups, are smart contracts that implement Ethereum 

scaling solutions for more efficient transaction processing on the blockchain.

To understand ZK-Rollups, you must have a foundational knowledge of rollups in general and why they hold the key to Ethereum Layer 2 scalability solutions. 

 on a secondary chain instead of the mainchain.

Rollups are among the most popular Layer 2 solutions because they provide a high throughput (

), without sacrificing security or decentralization. They achieve this by moving computationally intensive processes from the Ethereum 

 (Layer 1) to a sidechain (Layer 2). A rollup submits just enough data to the mainchain so that any participant can recreate the transaction states and detect invalidity or errors. Security isn’t compromised, since the transaction data is stored on the Ethereum mainchain.

ZK-Rollups bundle — or “roll up” — transaction data into a single block and process it off the mainchain to ease congestion. Network participants known as transactors and relayers handle this data, while verifying and submitting it to the mainnet.

Transactors post their transaction data — which consists of the indexed address, value, network fee and nonce (number only used once) — to the network. The indexed address uses fewer processing resources, and smart contracts link these addresses to 

, data structures that make sure data can’t be faked within a ZK-Rollup. A ZK-Rollup has two Merkle trees: one that records accounts, and another that stores transaction values. This also is an efficient use of processing power and time.

 create rollups by aggregating transactions. They create a 

, succinct non-interactive argument of knowledge (ZK-SNARK) proof that validates transactions by comparing the blockchain state before and after. ZK-SNARK is a novel way of proving possession of specific information without revealing that information, and without the prover interacting with the verifier. The relayer forwards the results of the proof to the mainchain in a verifiable 

. Relayers must stake their crypto in a smart contract to incentivize honesty. Any fraudulent act attracts loss of the staked funds, discouraging bad actors and reducing the need for frequent disputes.

ZK-Rollups are a more efficient use of blockchain space, as they require less storage than traditional smart contracts since “zero knowledge” of the whole transaction’s data is needed. They only need validation proof, which makes validation quicker and cheaper because minimal data is included. The transactions have already been verified on the sidechain, which automatically validates them on the mainchain. Validating using a ZK-Rollup requires less data, which is quicker and less expensive than executing the transactions on the main Ethereum chain.

Cheaper and faster, ZK-Rollups offer some of the best Ethereum Layer 2 scaling solutions. Here are the primary advantages:

With its innovative approach, the ZK-Rollup protocol promises to be the future of Layer 2 scaling. Of course, it’s not without its drawbacks. ZK-Rollups present some limitations that will need to be overcome to achieve mainstream adoption:

ZK-Rollups vs. Other Layer 2 Scaling Solutions

Rollup protocols and other Layer 2 scaling solutions operate similarly, but each one is designed to serve specific use cases within the blockchain ecosystem. 

Some Layer 2 solutions may offer enhanced scalability and throughput by not posting any data to the Ethereum mainnet. However, this comes at the cost of reduced security. 

ZK-Rollups and optimistic rollups both achieve scalability improvements by moving transaction computation 

 and submitting highly compressed data to the Ethereum mainnet. Where they diverge is in their verification methods. ZK-Rollups validate transactions with complex cryptographic validity proofs, with each batch of transactions submitting a validity proof to the mainnet.

Optimistic rollups, on the other hand, believe all the transactions to be valid, and submit transaction batches without any calculations. This leads to a considerable uptick in scalability. However, there’s a challenge period in which anyone can question the validity of any transaction. If an anomaly is observed, the rollup runs a fraud proof (a check on transactions for possible fraud) using the data available on Layer 1. This challenge period wait causes more delays than with ZK-Rollups.

The optimistic rollup protocol incentivizes legitimate transactions by rewarding sequencers (parties responsible for storing and executing user transactions off-chain). Sequencers who submit fraudulent transactions to the Ethereum blockchain are punished by having their ETH stake slashed. 

Optimistic rollups can offer up to 100x increase in scalability, since they don’t need to carry out complex computations. However, the challenge period means their withdrawal period is far longer than that of ZK-Rollups. 

Another main difference is that optimistic rollups offer smart contract capabilities, which are challenging to implement with ZK-Rollups.

Sidechains are blockchains which are linked to the main blockchain, such as Ethereum via bridge contracts. They differ primarily from ZK-Rollups in that they receive data from the mainnet without needing to validate it. Instead, sidechains rely on a set of parties who control 

 contracts to confirm that the mainnet isn’t compromised and relay this information to the bridge. 

As a separate entity, sidechains have their own security properties and consensus mechanisms to process transactions. Like ZK-Rollups, sidechain transactions are often cheaper than mainchain transactions.

Meanwhile, for ZK-Rollups, sequencers give proof of the network state to the bridge contract, which has to validate the evidence and verify that the network hasn’t been compromised.

ZK-Rollups use Ethereum network security, and consume more resources as a result. This makes ZK-Rollups more expensive compared to a sidechain. 

The main difference between ZK-Rollups and sidechains is the method for storing transaction data. Whereas rollups batch transactions on Layer 2, and then submit them to the mainchain, sidechains create entirely separate chains — and then submit only the deposit and withdrawal to the mainchain. While ZK-Rollups can rely on the security of the mainchain, sidechains are responsible for their own. There’s also the chance with any sidechain that the operators creating new blocks could stop producing blocks, or limit withdrawals. As with mainchains, sidechains are also subject to 

Plasma chains are a scalability solution first proposed by 

 and Vitalik Buterin (co-founder of Ethereum).

Plasma is a Layer 2 scalability solution that offloads transactions to a Layer 2 sidechain (or “child chain”) and periodically submits newly created blocks back to the Ethereum mainnet. Plasma creates blocks through consensus mechanisms, similar to sidechains, but posts block roots to the mainchain, which act as a security layer. 

Similar to ZK-Rollups, plasma chain transaction costs are lower than on the mainchain. They also use fraud proofs to secure the plasma chain. These sets of checks and balances allow users to challenge the validity of their funds on the mainchain, creating comparable security to that of rollups.

ZK-Rollups and plasma chains both scale Ethereum by moving transactions off the mainchain to a Layer 2 sidechain. However, the fundamental difference is that ZK-Rollups group hundreds of transfers into a single transaction, which is validated with a ZK-proof on the Ethereum mainnet, whereas plasma chains create and submit one transaction per transfer.

Plasma’s scalability is limited by the high amount of data requirements on the mainnet for validating blocks when users want to withdraw from the sidechain. Furthermore, the challenge period is lengthy, and users must stay online — or forfeit their rewards. ZK-Rollups are more user-friendly, utilizing fewer resources and making them a more promising Ethereum scaling solution than plasma for most use cases. 

Plasma is designed to interact and communicate as rarely as possible with the mainframe. This has caused some data unavailability errors. When this occurs, it has to be determined whether the ledger is correct and the operator is trustworthy. Some plasma implementations hold votes among governance token holders to resolve this issue. This differs from the assumed trusted state of rollups, which rely on the “one in n” rule to validate authenticity.

One major upside to plasma and rollups is that even if the exchange running the scaling solution is down, funds can be withdrawn because of the fraud proofs on the main public ledger.

State channels are scaling solutions that allow two or more parties to transact securely off the Ethereum blockchain. The parties involved interact without recourse to the mainchain by sending state updates between themselves.

When any of the parties decide to stop using the channels, they initiate an “exit” — that is, they submit the last state updates to the mainchain, and the current balances are transferred to the parties that started the channel. The mainchain validates this current state by verifying final balances and signatures, making it challenging for anyone to exit from an invalid state.

But there’s a drawback: The mainchain has no way of knowing if another transaction has been added to the previous ones after the last state updates have been submitted. A way around this is to allow a period for any of the parties to challenge the exit. To eliminate the extended wait times to withdraw to the mainchain, parties involved in the transaction can sign a “conclusion proof” which allows a party to exit without waiting for the challenge period to elapse.

State channels have the advantage of allowing transactions between two parties without involving a third party, unlike ZK-Rollups, where a rollup operator must process all transactions. 

Another difference between state channels and ZK-Rollups is that state channels have immediate finality: The state is final once the counterparty confirms that an update was received (i.e., the transfer of values is instant).

Zero-knowledge rollups hold significant potential as an ideal scalability solution for Ethereum.

Therefore, to take advantage of this fast-developing technology, here’s a list of protocols that implement ZK-Rollups and their coins.

The Loopring network is a ZK-Rollup-powered project that enables developers to create exchanges or DEXs with fast settlement for traders on the Ethereum network. Loopring DEXs offer low-cost trading and payment on the Ethereum blockchain, leveraging the high-throughput advantage of ZK proofs.

ZK-Rollups enable Loopring DEXs to take settlement computation off-chain, rather than settling directly on the Ethereum blockchain like other exchanges. This slashes the number of transactions submitted to the Ethereum network, easing congestion, increasing speed and reducing trading costs.

LRC is the native utility token of the Loopring network. Traders pay in LRC when processing each trade. On Loopring, 80% of the funds are sent to the liquidity providers, and the balance is shared between insurers and Loopring’s 

The LRC price could be affected by the performance of the Ethereum network. As transactions on Ethereum increase, slowing down the network and driving fees higher, more users will favor scalability solutions such as Loopring.

Immutable X is a Layer 2 scaling solution for non-fungible tokens (

) on Ethereum. It uses ZK-Rollups to scale up instant trading, and to eliminate gas fees for NFT minting and trading, without sacrificing the security of users and assets.

IMX is the native utility token of the Immutable X protocol. Users can earn IMX by trading and carrying out other activities on the network. IMX can be used to pay fees, to stake on the protocol, or as a governance token.

Immutable X stands at the intersection of three popular narratives in the crypto space —

NFTs, ZK-Rollups and Gaming ― making it a promising asset worth considering. Furthermore, because its zero gas fees for trading NFTs attract more developers to the platform, Immutable X is primed for substantial growth.

 network is a ZK-Rollup-based protocol for building and connecting Ethereum-compatible blockchain networks. It allows developers to build 

 which combine the high-security features of Ethereum with the low gas fees and scalability of Polygon Network.

MATIC is the native token powering the Polygon Network. It’s used to pay transaction fees, and can also be staked in the PoS consensus to earn passive income. Users can earn MATIC by providing resources for transaction validation and executing smart contracts on the network.

The main reason to keep an eye on MATIC is the rapid growth of the Polygon network, with more interoperable projects launching on it. Also, Polygon has recently acquired the Ethereum scaling startup 

 for $400 million. Mir Protocol boasts the fastest and most advanced ZK-proof technology, called 

, which was designed to generate proof faster and to verify more transactions in one proof.

This is the second major acquisition by Polygon, having previously bought ZK-Rollup Hermez Network (now 

 is a PoW blockchain that combines Layer 1 and Layer 2 elements to create a platform for the development of Web 3.0 DApps. It combines the high security of 

 and the DApp capabilities of Ethereum (using a ZK-Rollup scaling solution) to create fast and secure 

 products. The Syscoin project aims to create a platform for organizations to utilize distributed ledger technology with high security, low cost and high scalability.

Syscoin’s native token, SYS, is used to pay network fees, collateralize a masternode for rewards and participate in governance. Users can also create a custom asset token, Syscoin Platform Token (SPT), which uses the Syscoin Token platform. Both Bitcoin and SYS can be mined simultaneously in a process known as merge-mining.

There’s every reason to be bullish about Syscoin in 2022. The Syscoin network offers various applications in 

, and an increasing number of projects are launching on the platform. With the ZK-Rollups scaling solution promising throughput of 210,000 TPS, the Syscoin network will increasingly handle more transactions at very low fees.

) protocol built on the automated market maker (AMM) model. It’s the first 

 to implement a Layer 2 scaling solution based on ZK-Rollup technology which promises security and high scalability. Using ZK-Rollup technology, ZKSwap lessens the load on the main Ethereum network and offers better security, lower cost, higher TPS and privacy for traders.

The ZKSwap network is powered by ZKS, its native ERC20 token. ZKS is used to reward users for community mining, transaction verifications and other pro-network tasks. ZKS holders can vote for token listings and also govern the network.

There are great plans ahead for ZKSwap: Proposed Layer 2 lending and stable currency exchange services are in the works. ZKSwap is also developing a general 

ZKSwap partners with popular DEXs, such as MXC, Huobi, 

, and is working to integrate more protocols in the near future.

With its increasing popularity, the Ethereum network is still facing scalability challenges as more projects launch. Expectedly, Layer 2 solutions are only going to become more relevant. In this space, ZK-Rollups with breakthrough zero-knowledge-proof technology offer significant advantages in TPS, gas fees, security, privacy and scalability. Even better, ZK-Rollups and ZK-proof technology are relatively nascent, and more technological advances are to be expected in this field.

ZK-Rollups Guide: ETH Scalability — and Why It’s the Next Big Narrative

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