Accelerating the Growth of zkSync with Holdstation Paymaster
zkSync Network Fees
zkSync - an Ethereum Layer 2 solution, recently achieved significant milestones in terms of scalability and cost-efficiency. With the release of Boojum, zkSync now has the fastest transaction speed with ~16.25 TPS. Its gas costs are also significantly lower than those of other Layer 2 solutions, at 40% lower than Optimism and 50% lower than Base.
These achievements are impressive, but zkSync is not resting on its laurels. The team is also working on native Account Abstraction and Paymaster, these features that could make zkSync is the end game of Layer 2.
Holdstation, as a native project within the zkSync ecosystem, aims to deliver Paymaster to all projects that want to integrate the technology into their products. This will help to make the zkSync ecosystem more robust and comprehensive, and it could help to bring billions of users to on-chain activity without any barriers.
The Inconveniences Gas Slayer
Paymaster is a key feature of the Holdstation ecosystem that makes it easier for users to participate in on-chain activities. Allowing users to pay for gas fees using a variety of tokens, including stablecoins, HOLD, the project's governance tokens. This eliminates the need to have ETH, providing better blockchain UX for everyone.
In addition, Holdstation Paymaster offers significant gas fee savings. Users who use it can expect to pay 50-80% less in gas fees than they would otherwise.
For projects that integrate Paymaster tech, there are several benefits. First, Holdstation offers free support to help projects build and integrate Paymaster. Second, Holdstation sponsors up to 50% network fee reduction for users of projects that integrate Paymaster.
Overall, Paymaster is a valuable tool that makes it easier for users to participate in on-chain activities and for projects to attract and retain users.
Game Theory
Game Theory becomes the focal point of the synergy between the Holdstation Grant, zkSync Projects, and zkSync Users, with a primary goal of enhancing user experience and propelling the overall growth of zkSync, irrespective of its application in DeFi, GameFi, SocialFi, and beyond. The envisioned scenario unfolds as follows:
Project X collaborates closely with Holdstation to develop a paymaster system facilitating gas payments exclusively in HOLD. Users opting for HOLD to settle gas fees within Project X receive attractive discounts. The sponsorship of these gas fee discounts by the Holdstation Grant to Project X serves as a strategic incentive to cultivate and maintain an active user base.
The HOLD acquired by Project X from the paymaster can be staked to earn trading fees from Holdstation. Subsequently, the claimed USDC rewards can be used to buy back token X or looping HOLD / hsUSDC staking to passively thicken the treasury of the project.
- Project X stake HOLD -> earn USDC -> buy back X
- Stake HOLD -> earn USDC -> stake USDC -> long-term sustainable growth of the treasury
- Stake HOLD -> earn USDC -> buy HOLD -> stake -> more voting power in paymaster wars
“The more voting power, the more discount for paymaster”
New Warriors Arise
Holdstation is supporting projects to build paymasters and integrate HOLD as a widely accepted payment method. Some projects that are currently in development and have been completed include Syncswap, Zerolend, Mute, Velocore, Orbiter, and TxFusion.
Soon, HOLD-ers can pay network fees at a discount with their bag. And the projects can build up a sustainable treasury over time from the HOLD collected from Holdstation Paymaster.
- 1 Protocol in 1 month collect 12,500 HOLD (~ 50,000)
- 1 Protocol in 12 months will collect 150,000 HOLD (~$600,000)
The more projects that use Holdstation Paymaster, the more demand for HOLD.
Early Real-World Achievements
In a mere 20 days post the integration of the Holdstation Paymaster for network fee payments with HOLD, Syncswap has effectively saved its users approximately $38,000, translating to an annual savings of around $700,000. During this period, Syncswap accumulated a total of 8278 HOLD from users utilizing it for fee payments, equivalent to over 12,500 HOLD per month.
Syncswap consistently extracts HOLD from the paymaster and strategically stakes it, actively engaging in DAO voting. This persistent involvement ensures the continual sustenance of the paymaster incentive, allowing users to consistently enjoy discounted network fees in the future. Simultaneously, this strategic approach enables Syncswap to accumulate USDC for executing buybacks of SYNC or continuing a loop strategy, progressively fortifying its treasury for long-term sustainability.
We are happy to share that 11,200 $HOLD tokens collected through the #SyncSwap Paymaster have been staked in @HoldstationW 📥🎉
— SyncSwap (∎, ∆) (@syncswap) January 15, 2024
The yields generated by will be used for future development and buybacks.
Together with our strategic partner Holdstation we are building a more… pic.twitter.com/o1oWPTEb5v
Closing Thoughts
Holdstation Paymaster stands as a potent addition designed to foster mutual growth within the ecosystem. All zkSync projects can now enjoy a friendly UX for their users without incurring any costs, thanks to the unwavering support from Holdstation Grant. This innovative feature not only simplifies user interactions with zkSync applications but also has the potential to expedite the overall expansion of the zkSync ecosystem, contributing to the broader goal of making blockchain technology more accessible to a diverse range of users.