Why we invested in Zapper

Introduction

Zapper is a one-stop-shop for deploying and managing DeFi positions. It is one of the most widely known and used tools in the entire industry. In contrast to traditional full-service banks and brokers in TradFi, DeFi, an industry still in relative infancy, has seen several different platforms emerge offering a wide range of services to users e.g.: lend/borrow on Compound, interest on Aave, trading on dYdX, swapping on Sushi and insurance on Nexus. While specialised services are useful and inevitable in a new industry, it has led to asset silos and industry fragmentation which is an inconvenience for DeFi users from an asset management perspective. As most DeFi users know, Zapper solved this problem and, in many ways, did so better than TradFi.

Zapper dashboard, clean categorized UI.
TradFi siloed dashboard. Source: https://www.wellsfargo.com/online-banking/tour/online-brokerage/

Background

Zapper was formed in 2020 following the merger of two popular grassroots products aiming to solve the problem above. These projects were DeFiSnap (ecosystem tracker dashboard) and DeFiZaps (entry gateway to those ecosystems via “Zaps”). As explained by Zapper: “DeFiSnap’s intuitive dashboard to easily track positions paired with DeFiZap’s system of smart contracts to deploy capital across multiple DeFi protocols in one transaction, create a holistic user experience to tap into and monitor the wider DeFi ecosystem” (https://twitter.com/zapper_fi/status/1256170281695162368). Zapper is, in essence, a non-custodial dashboard to seamlessly view, deploy to, and migrate between top income opportunities in DeFi.

  • Removes the complication of seeking out protocols to deploy capital.
  • Places hundreds of liquidity options in one dashboard.
  • Summarizes deployed assets by class, e.g. liquidity pools, wallets, yield farming, debt, etc. as opposed to by protocol.
  • Fast strategy deployment.
  • Automatically divides your liquidity into whatever proportion the pool requires, e.g. 50/50 in Uniswap, 80/20 in Balancer.
  • Portfolio rebalancing via shifting capital to other platforms.
  • Multi-pooling allows diversification of asset distribution across various liquidity pools.
One-click PancakeSwap liquidity. Source:https://twitter.com/zapper_fi/status/1380270186163535873

The Decentralization of Finance

The internet brought about the democratization of information and the disruption of many industries from travel and tv to media and music. Banking has been slower to change given the lack of a similarly democratized money layer on the internet, allowing anyone to freely create and exchange value. This all changed with Bitcoin and crypto.

Source: https://newsletter.banklesshq.com/p/the-defi-mullet-market-monday-lite

Zapper features

Zapper has grown from a simple dashboard to a multi-functional DeFi asset management platform. Zapper aggregates the top opportunities and allows filtering and ranking by protocol, ROI, liquidity, etc. Zapper now supports token exchange, liquidity pools, yield farming, and cross chain token bridges.

Zapper’s “Exchange” function allows token swaps without leaving the dashboard, giving you the best price from an aggregated list of top swap protocols.
Liquidity pool opportunities.
Farming opportunities.
Zapper has been EVM compatible from the ground up and supports a bridge to Polygon with Optimism coming soon.
Searchable history to view past transactions and export data.
Easily view your NFTs and their current value.

Multi-chain, L2s, sidechains and L1

For any asset management tool, coverage is everything. Zapper is the best in the space at partnerships and integrations. A major recent addition to the Zapper tracking ecosystem has been Polygon, a popular Ethereum sidechain framework for building and connecting Ethereum compatible chains. This integration is particularly useful for users of QuickswapDEX, the leading AMM on Polygon.

Source: https://twitter.com/zapper_fi/status/1372286711523336194

Why Zapper?

Long term flexibility

Source: https://learn.zapper.fi/articles/farm-stablecoins-with-curve-on-polygon
Diverse range of articles written by Zapper team.

Competitive landscape

Other players in the DeFi aggregator space are Zerion and DeBank.

  • Zerion doesn’t have comprehensive integrations in a single vertical, but allows its users to interact with a select few protocols in each sub-niche; DeFi indexes, L2 scaling tokens, Aave interest bearing tokens, TokenSets etc. It has expanded its offering across multiple verticals but doesn’t support every protocol in these verticals. Zerion also has a mobile app on both Android and iOS which may be useful in onboarding TradFi users to DeFi.
  • DeBank has a slick interface however currently only supports Metamask and is limited to basic token swaps.
  • Zapper is by far the easiest way to interact with liquidity pools, automating the split of capital between the pool assets. The platform has a comprehensive selection of LPs, and up until now had less integrations across DeFi’s various verticals, previously taking the approach of focusing on a single niche and providing comprehensive coverage. This has changed with recent bridges to L2 protocols Optimism and Polygon with more integrations expected in the future. Lastly it supports a range of wallets, including WalletConnect for mobile, to maximise user onboarding.

Sino strategic value add

There are a number of ways Sino can help Zapper continue its growth, particularly in Mainland China, from community outreach and management to localization and strategic partnerships. We look forward to working closer with the team.

Conclusion

Zapper’s evolution from a simple portfolio tracking dashboard to a one-stop-shop that includes cross-chain deployment (all powered by custom smart contracts) has made it a leader in DeFi. With a team committed to fast integrations, user-centric design, and constant upgrades in line with industry developments, we believe zapper will remain a cornerstone of the industry for the foreseeable future.

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Sino Global Capital

Sino Global Capital

A team of former consulting, Wall Street, private equity, government, and corporate veterans accelerating the blockchain revolution