Proposal for the Deployment of Venus Money Market Protocol on Polygon zkEVM
The community of Venus Protocol has made significant strides since their inception in 2020, successfully lowering the entry barrier for millions of users worldwide and positioning themselves as one of the most widely utilized decentralized applications in web3.
To continue pushing the envelope of DeFi’s potential, we propose that the Venus Money Mark Protocol be deployed on Polygon zkEVM. This deployment will provide a synergy between Venus Protocol and Polygon zkEVM, a scalable Layer 2 protocol, potentially enhancing the user experience and risk management features for Venus’ growing community.
Additionally, given the close relationship between PancakeSwap and Venus, we’re excited to continue supporting one of the largest pairs of partners in DeFi.
We believe this is the right moment for Venus to deploy on Polygon zkEVM, for several major reasons:
- Polygon zkEVM is a new zk-rollup that provides Ethereum Virtual Machine (EVM) equivalence (opcode-level compatibility) for a transparent user experience and existing Ethereum ecosystem and tooling compatibility.
- Polygon zkEVM is an Ethereum L2 scalability solution utilizing cryptographic zero-knowledge technology to provide validation and fast finality of off-chain transaction computations.
- The Polygon ecosystem is aligned with Ethereum and its values.
- LayerZero has deployed their endpoint on Polygon zkEVM, in line with the Omnichain Money Market post for cross-chain expansion on Venus.
The migration to Polygon zkEVM would not only capitalize on the compatibility with Ethereum smart contracts but also benefit from the scalability features offered by Polygon’s zkEVM.
Polygon zkEVM, an open-source ZK-Rollup, delivers a hassle-free user experience withEthereum Virtual Machine (EVM) compatibility. It flawlessly integrates with pre-existing smart contracts, developer tools, and wallets. Leveraging the strength of ZK proofs, Polygon zkEVM significantly reduces transaction expenses and substantially boosts transaction speed, while also adopting Ethereum’s robust security. The Polygon zkEVM mainnet beta was successfully launched on March 27, 2023.
- Listing assets on Polygon zkEVM within Venus isolated pools to further enhance protocol and asset use-cases.
- Multi-chain expansion into the Polygon ecosystem introduces the successful Venus protocol to a completely new set of Ethereum-adjacent builders.
- Enhanced User Experience: Leveraging the Polygon zkEVM can minimize user and developer friction and provide a smoother, more seamless experience.
- Risk Management: Venus’s isolated pools feature and Polygon zkEVM’s verifiable zero-knowledge proofs can further bolster the protocol’s security and risk management capabilities.
To help bootstrap Venus’ growth on Polygon zkEVM, we will provide a $100,000 MATIC grant, with the aim of user acquisition.
Additionally, we will provide additional incentives for Venus’ continued growth on Polygon zkEVM:
- $50k at $10m TVL
- $50k at $25m TVL
Finally, the core DeFi BD team at Polygon Labs will work closely with the Venus team to:
- Co-Market Venus’ launch on Polygon zkEVM
- Connect Venus to the large ecosystem of Polygon-based builders who are eager to work with the money market
- Work closely with Venus on any questions around launch across developer, business development, and project support.
Deployment on Polygon zkEVM, Venus will also get the opportunity to get the added advantages of the Polygon Ecosystem, ranging from not only business development support of Polygon Labs, but also community expansion, marketing support, chance to participate in an ecosystem with more than 50000 dAPPs, and support from the best product and solutions engineering team in crypto industry.
The legal entity that is supporting this proposal is Polygon Labs Services (Switzerland) AG, a Swiss corporation known as “Polygon Labs”.
Conflict of Interest Declaration
There are no existing financial or contractual relationships between Polygon Labs and any of Venus’'s legal entities, including Venus, Venus tokens, nor investments of Venus.
Deploying on Polygon zkEVM should pose minimal risks, relative to deploying on alternate blockchains. As an Ethereum Layer 2 protocol, it uses Zero Knowledge proofs to inherit Ethereum’s core safety, while allowing developers to easily deploy existing EVM codebases. Polygon’s zkEVM testnet has been running for the past six months. Additionally, the deployment has been audited multiple times, by auditors including Spearbit and Hexens. More information outlined in detail in our first party docs here: https://wiki.polygon.technology/docs/zkEVM/