zkLend is an L2 money-market protocol built on StarkNet, combining the best of zk-rollups and Ethereum to bring more users to the DeFi market.
To differentiate itself from the growing competition on the market, zkLend offers an innovative, dual solution to the problems faced in DeFi—a permissioned and compliance-focused solution for institutional clients and a permissionless service for DeFi users. All without sacrificing decentralization.
Zk-rollups + StarkNet + Ethereum = zkLend
zkLend was created to advance DeFi adoption by making financial primitives on the blockchain accessible to the retail market and the growing number of institutional clients. And while it sounds like a simple enough proposition, the protocol was faced with a series of complex problems it needed to solve—the first one being security.
The team behind zkLend started toying with building a protocol in 2021 when talks of Layer-2 solutions emerged. While Ethereum was and still is one of the best blockchain platforms to launch on, both in terms of the overall security and network effect, the congestion and high fees it faced at the time pushed the team to consider launching on an L2.
When Vitalik Buterin’s guide to rollups was published in early May last year, it cemented the team’s position that zk-rollups were the best L2 solution for zkLend. With computations done off the main blockchain while proofing the results and state-root changes recorded on-chain, zk-rollups provided scale without compromising security.
At the time, StarkNet emerged as a promising new application of zk-rollup technology, pushing the team to launch the protocol on the innovative blockchain.
The team said that StarkWare’s technological competitiveness, proven effectiveness, and a technical, developer-focused ecosystem made it choose the network. StarkNet uses cryptography based on STARKs validity proofs—around ten times faster than…
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