Veno Finance announces first ETH native liquid staking on zkSync
On January 9, Veno Finance, a liquid staking protocol on Cronos (CRO), was officially integrated with the zkSync Era Layer-2 blockchain scaling solution.
This app allows users on zkSync Era to directly participate in Ethereum (ETH) token staking and earn Liquid ETH (LETH) tokens; According to the latest information shared with Finbold, this development expands yield farming opportunities within Veno Finance’s decentralized finance ecosystem.
The Veno protocol simplifies supporting the Ethereum network among zkSync users. Its mechanism involves bridging ETH tokens between zkSync Era and the Ethereum mainnet and automating staking and withdrawals on behalf of users.
How does staking work on zkSync?
By staking ETH locally on zkSync Era, users receive an equivalent amount of LETH tokens, providing a way to earn additional returns under DeFi protocols.
Incentivizing LETH liquidity providers, Veno plans to introduce its native VNO token to the zkSync Era blockchain as stated in the roadmap.
By locking VNO into the Fountain, token holders can earn additional VNO as rewards depending on the amount and duration of token locking. Alternatively, users can lock their VNO into the Reservoir and receive Real Return on ETH rewards covering 50% of all ETH staking commissions earned by Veno.
An extra incentive mechanism allows zkSync Era users to earn additional rewards in the form of VNO by depositing their LETH-ETH-LP tokens into Veno Garden.
Other possibilities of staking on zkSync
Additionally, Veno is expanding additional opportunities by issuing users an NFT receipt when withdrawing LETH tokens. This provision allows users to instantly access unstake assets, providing tangible proof of withdrawal. This NFT acts as a means for users to leverage their funds before they are fully available.
The expected growth of the Exit Queue for Stacked ETH indicates that this feature will gain increasing importance over time. In scenarios where withdrawals of stacked ETH may take weeks or months to process, this ensures that tokens are not left unused for long periods of time.
What does this milestone represent?
Securing this first-mover advantage positions Veno to develop a protocol that has seen significant growth over the past year.
The integration with zkSync Era is a major milestone for Veno, which builds on the recent launch of the Veno Gardens platform and offers a variety of options for VNO token holders to maximize their earnings.
Other notable developments include Veno becoming the first company to facilitate ATOM staking on Cronos and the introduction of the CRO Liquidity Strategy, designed to autonomously collect and compound incentive rewards for users.
zkSync Era, a rapidly expanding Layer-2 scaling solution for the Ethereum blockchain, makes it easy to scale the world’s leading decentralized network to new levels.
Standing out with its zero-knowledge proof technology, zkSync Era performs fast and secure transactions, reducing fees well below traditional costs. This approach will help encourage widespread adoption in the future.
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