The DeFi is getting easier to understand and interact with but it is still puzzling in some ways. We were predicted by some prominent crypto influencers that DeFi is the future and a new source for investors to gain independence and earn higher yields. Currently, there is a gap between an investor and new technologies — it can be bridged by such solutions as account abstraction (AA) and thus, zaps. We’ve asked Portals, our Zap provider, to shed some light on how zaps work and why we all need them in our investment endeavors. So, Suhail Gangji, Co-Founder of Portals, kindly answered our questions to break the Zap concept down.
Zap technology revolutionizes the way you interact with projects. That’s a method of depositing that bundles multiple transactions into a single one. It was made to vastly save you gas and time. This infrastructure is especially useful when you access a pool, farm, or vault that could have taken about 2 to 6 (and even more) transactions but thanks to Zaps, you have just one smooth process.
Zap turns your multiple transactions into one that frees you from leaping between website screens or worrying about potential errors and delays. Plus, it simplifies your daily UX and makes your entry into the DeFi space much easier and streamlined.
Q: ‘In your experience, what are the common challenges users face when interacting with DeFi protocols, and how does Portals address these challenges to provide a more user-friendly environment?’
A: ‘There is a significant learning curve for those entering the space. Newcomers will have to learn and contend with the concepts of complex transactions, wait times, gas fees, manual rate comparisons, friction in protocol integrations, and so on, all the while missing out on hidden yield opportunities. The solution to all of these issues lies in simplification.
Portals simplifies DeFi interactions for users by bundling multiple complex actions into one-click transactions. We use Account Abstraction (AA) to provide flexible pathways and gasless transactions and aggregate data for 35,000+ tokens and hundreds of protocols across multiple networks to uncover yield opportunities. Swaps occur in a single user-friendly interface & zaps require only a single asset.
These steps towards simplification are the future of the industry. After all, the challenges users face in DeFi are, in effect, the challenges DeFi faces with mainstream audiences.’
What Exactly Are Zaps?
DeFiZap is a smart contracts system—Zaps that deploys ETH across various DeFi protocols in one transaction. You can use Zaps to get access to DeFi opportunities such as Lending, Farming, Liquid Staking, and Liquidity Provision directly from your Ethereum wallet. You can provide any asset on any blockchain and supply it in one transaction.
Let’s illustrate that with an example. Let’s say you need to get VELO/USDC (Optimism) pool LP tokens for USDT ERC-20, so you will need:
1. Bridge USDT from Mainnet to Optimism;
2. Swap 50% USDT for VELO;
3. Swap 50% USDT for USDC;
4. Deposit VELO into LP;
5. Deposit USDC into LP.
Keep in mind that you have to pay gas fees and get approval for each of the above-mentioned steps which is just dreadful, isn’t it?
Zap makes the same operation but in one one-step manner. You choose an asset and a pool, confirm the transaction, and receive your LP tokens.
Q: ‘How does Portals view the role of Zaps in simplifying DeFi investments?’
A: ‘Zaps have made accumulating yield more accessible than ever. Complex processes are automated and streamlined. Monitoring and initiating multi-step transactions has been eliminated, lowering the bar to entry significantly.
We see a future where the vast majority of onchain transactions are executed by zaps due to their multi-faceted nature while DeFi becomes increasingly more complex, convoluted, and composed.’
How Does DeFi Zaps Technically Work?
Q: ‘Could you provide insights into how DeFi Zaps facilitate the automatic execution of multi-step transactions? What advantages do they offer in terms of efficiency and cost-effectiveness?’
A: ‘For users, Portals eliminates navigation through the complexities of DeFi altogether. Zaps automate swaps, approvals, staking, liquidity provision, and more, removing friction and avoiding gas fees and manual route optimization while saving users time to boot and simplifying DeFi and asset management.
Effectively, all transactions become one-click interactions, regardless of the complexity of the underlying transaction.’
How Secure Are DeFi Zaps?
Q: ‘What security measures are implemented by Portals to safeguard transactions and user assets within DeFi Zaps? Could you share securitization details to assure users of the safety of their investments?’
A: ‘Portals is a non-custodial service that does not have any TVL or hold user funds, thus removing the risk that funds could be lost in a hack. In addition, all transactions created by Portals is atomic, meaning that all steps in the bundle (or zap) must be successfully completed. If one step fails, the entire transaction reverts, and the caller’s funds are simply returned as in any other reverted transaction.
Furthermore, Portals includes robust slippage and price impact protection with every order, ensuring that MEV is minimized.
Finally, Portals also simulates all transactions to verify the outcome of the zap is what the user expects. Portals has also undergone a formal audit by Pashov Krum, one of the leading auditors in the industry.’
So, let’s sum that up. What happens when you use Zap? DeFi becomes easier, you save on gas and time, by having one single transaction instead of multiple ones.
Notum and Portals’ synergy empowers investors with a smooth, gasless swap & zap in/out experience. We can definitely say that it’s a huge step forward toward reducing network complexity, boosting token utility, and making DeFi easier to understand and use in a day-to-day manner.
Notum immerses you into the DeFi position in one transaction—1 click and you zapped in or out!
Notum is a human-centered decentralized platform designed to clarify DeFi space and bring it to a broader audience. By providing risk rating for certain investment positions, enhanced investment monitoring of parameters such as APY and TVL, detailed information about your investment, and 1-click investment with any token to 50+ protocols.
It bridges DeFi protocols and investors, offering an all-in-one tool for exploring, assessing, and managing investments in the most beneficial way.