The first few of us already received their first STORJ tokens on zkSync Era.
However, as far as I can see, there wasn’t yet any way to convert between STORJ and ETH directly on zkSync Era (without converting to L1 etc.). So I created a pool on SyncSwap. This is NOTzkSync Lite - aka zkSync Legacy as called by Storj Company. For that you can simply use zigzag exchange.
Note, that you need to manually paste the STORJ contract address 0xA0806DA7835a4E63dB2CE44A2b622eF8b73B5DB5 into the SyncSwap UI, as it’s a new custom token and hence won’t be suggested when typing STORJ.
Thank You, but strange here at syncswap the Ledger Live wallet wont connect to Era zksync mainnet, (walletconnect v2) same i used on jumper and all was fine, just no routes.
at https://jumper.exchange at least it connected and saw balance in STORJ on zksync, here i can connect to Ethereum only (but couldn’t see the eth balance, was refreshing in infinity hmmm,)
You provide an amount of ETH+STORJ (e.g. 15$ of each token at the current market price). When people want to exchange these tokens, they swap one for the other - changing the DEX ratio and hence DEX price of both assets. For each trade all liquidity providers earn 0.1%-1% of the trade amount. (The pool doesn’t specify, what exact amount this is.)
For instance, if I put in 50$ of ETH+STORJ and you put in 25$ of ETH+STORJ, and someone makes a 15$ swap - then we’ll share say 1% of 15$ = 0.15$. You’ll earn 0.05$ and I’ll earn 0.10$.
(denoted in ETH+STORJ).
You should be comfortable to trust the smart contracts or do due dilligence on them. I did that for Uniswap, but not for SyncSwap, as I just got to know about it for zkSync Era. But since I only put small amounts of money, and because it looks trustable due to its large size, I simply accept the risk there.
Impermanent Loss. When the price ratio of ETH/STORJ changes too much from what you initially put in, you’ll make some losses. Ususally, there are calculators which make it possible for you to compare potential profits from earned fees and losses from IL.
As mentioned, you make profits for each swap, that happens. Kinda like passive income. Ususally, there is an APR which is caculated based on recent past trading volume. But for this new pool, obviously there isn’t any trading history. Also, since it’s all so new, we don’t expect that much trading at all. However, this will likely grow in near future. And early LP earn more than later ones, because later you’ll have to share the fees with more others. As a quick example: If the daily trading volume on SyncSwap zkSync Era for STORJ/ETH is 50$ and you put in 100$ of initial funds and you have 50% of the pool and the pool fees are 1%, then you’ll earn 50% * 1% * 50 = 0.25$ per day. If the trading volume is 4x the amount, then you’ll earn 1$ per day. However, the more trading volume there is - the higher the fees - the higher the implicit APR. That’ll drag more LPs to put their funds inside to take more of these fees.
The more people become LPs, the more people will keep their STORJ on zkSync Era and improve liquidity - instead of everyone moving it to L1 which would make zkSync Era less useful. And when there is more LP, you can also yourself start to more and more cash out your STORJ directly on zkSync Era instead of needing to bridge again.
I hope this is sufficient for an initial background on LPing.
I recommend you to just try it out with small funds. I have no experience with large funds however, so I don’t want to comment on that.
Hope you or anyone else jons me there to put liquidity into STORJ on zkSync Era!
done! still cant bridge storj L1 to era…maybe this is missing?
Add tokens to the bridge
While the zkSync standard bridge can be used without permission from a smart contract perspective, the UI only displays tokens that have been added to our SDK.
If you would like to add a token, submit a request by filling out the token request formopen in new window. Our team will review your request, and get back to you if we have any outstanding questions before adding the token to our list.