OCLUB AMA RECAP: Orbiter X Nexon (18/04/2023)

Orbiter_Finance
5 min readDec 29, 2023

Thrilling to welcome Jason, the Community Manager of Nexon Finance, a prominent player in the DeFi lending space. We shall dive into Nexon’s recent advancements, their focus on enhancing user experience, and their strategic roadmap for future development.

Full Recording

Twitter Space

AMA TLDR

1. Introducing Nexon Finance and Its Diverse Team [6:11]

Jason: Nexon finance is a suite of DeFi lending protocols from margin trading, yield farming, and other products that will be built in the future, all on zkSync. We focus on capital efficiency, low risk, and most importantly, UX. The core team is made up of three diverse and talented members, each with their specialties in engineering, product marketing, and research. Rohit has been leading engineering and research for many Web3 scaling projects. Amit has five-plus years of product marketing experience, helping with growth and community building. Mark holds a senior engineering role at one of the leading e-commerce companies in India. I am the community manager for Nexon Finance.

2. zkSync Era Mainnet Launch and Protocols Early Stage [8:25]

Jason: zkSync Era mainnet launched about a week or a few days ago, it’s in its early alpha stage. There are limitations such as usage and increasing TVL over time. Currently, our protocol allows users to leverage any borrow, but we’ve only listed USDC and recently started with ETH. We’ve set safeguards and a limitation of up to 1 million supplied to protect our lenders in this early era, but as zkSync evolves, we’ll open up more of the protocol.

3. The Advantages and Future of Building on zkSync [9:57]

Jason: Since zkSync offers great utility, particularly with zkRollups, it’s suitable for building a foundation with low cost and efficiency, more suited for mass adoption. Also, transactions are cheaper, and we don’t have to worry about gas fees. In terms of security, we’ve seen vulnerabilities in DeFi, but building on zkSync gives us priority on credit and risk management. We’ve built a robust security framework into our protocol. We aim to resolve user experience issues in DeFi, making borrowing and lending quick and straightforward. Our DApp UI is simple and seamless. We believe in using the best technology to attract Web2 and future Web3 enthusiasts. We’re learning as we build on zkSync, keeping up with the changing rules in the crypto landscape. We’re learning about the whole EIP for April that’s coming up and all of these cool technologies that are going to be built on zkSync. With all the 74 plus projects building in this ecosystem, we hope to see stronger adoption, and the boomers, etc., with more complex derivatives, and other things and scaling vertically in the future.

4. Nexon’s Ongoing Development in Backend Technology [14:18]

Jason: Not only bringing up about just the gas fees and stuff, the UX, we also being able to utilize this code. zkSync has helped Nexon a lot, but not only this, we’re also having this backend. You can see that we’re hardening putting this. The security stuff that built on layer two, which was also already organized within zkSync. On the front end, you may not see it, but there are a lot of key things used to power itself on the back end.

5. Tokenomics Revision and Upcoming Community Incentives [18:00]

Jason: We’re still revising some parts of this. The whole 61% seems a little bit wrong on tokenomics, so we’re still making adjustments. We know that there should be an allocation for community incentives. We’re almost near stage three, which is going to consider the token generation event. These upcoming events are going to be about this year. It’s not so particular and we are still in discussion and will announce more details of that soon.

6. Progress and Future Plans for Nexon’s Mainnet and DApp Development [21:25]

Jason: At the current public test, we have launched onto mainnet, ensuring safety as it ramps up in terms of capacity and capability for the future. We went live with USDC and ETH. We’re listed on DeFi Llama, getting more exposure. In the future, we will have more markets being added on, though there are still limitations of 1 million in terms of supply, meaning a single counter address can only deposit up to $500. We need to limit the risk and ensure everything’s running smoothly at the early alpha stage. Eventually, we will remove all these limitations once we achieve sufficient liquidity in the zkSync mainnet. For now, we’re working on Pool v1, focusing on user-friendly landings and withdrawing funds. We’re also working on risk management to minimize risks and get a fuller understanding of how the APIs are worked out. Later on, we’ll work on Pool v2 which will have more functionality, allowing users to live with more risk but also do more within the Nexon ecosystem.

7. Strategic Partnerships and Roadmap Development at Nexon [24:15]

Jason: At this stage, we are in talks with many strategic partners. The public will see soon how these partnerships will grow the Nexon ecosystem and increase Nexon's momentum over time. We are approaching stage three and stage four, then we’ll give back to the community. We’re starting with the Pool v2 testnet and then making that testnet onto Mainnet and refining a P2P.

8. Nexon’s Approach to Mitigating Bad Debt in DeFi [25:55]

Jason: We negate bad debt as we find a lender and a borrower, while they make a deal, it closes it all at once. We have our type of liquidity requirement, hence eliminating liquidation itself. P2P is great for low-liquidity tokens. We also have a better API for lenders and borrowers. We’re not dependent on oracles, hence less risk. Currently, we’re using pits and pistons, and in the end, we’ll be utilizing kits and king links together. We use proprietary data without the middleman from the source or the network. We match borrowers and lenders efficiently, utilizing 100% of the funds.

9. zk-Rollups: The Future of Scaling and Privacy in DeFi According to Nexon [30:18]

Jason: Also, the core team, thinks there’s a good future for zk-Rollups, which are one of the best in motion and privacy options. There are four different types of zk-Rollups, with security equivalent to types three and four. They offer ultimate scaling solutions with a low distraction. Zero-knowledge proofs have many applications in the ecosystem beyond DeFi, like online voting, authentication, machine learning, and more. This technology will grow and have a huge potential coming up. We’re building p2p and see a future where DeFi could resemble something like Web 3.0, with more complex derivatives and options. We’ve already seen a zkSync-native narrative being built upon. The vision can be achieved by growing bigger and touching all aspects of DeFi. The migration of byproducts from Ethereum L1 to L2 is also occurring from zkEVM on these zkSync, so all this compatibility means we’ll have more space to grow. We see many other zkSync NFT products being launched. zkSync chain is focusing on solving Ethereum’s challenges. Overall, it has been in development for the past three years, solving many previous problems, and it looks set to solve more challenges and problems soon too.

About Nexon

The First Decentralized Lending Protocol on zkSync — Low Risk, Capital Efficient & Community-Focused.

Website | Twitter | Discord

About Orbiter Finance

Orbiter Finance is a decentralized cross-rollup bridge for transferring the Ethereum native assets, which is the infrastructure of Layer2, we offer low-cost and almost instant transfer.

Website | Twitter | Discord

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Orbiter_Finance

Orbiter Finance is a decentralized cross-rollup Layer 2 bridge with a contract only on the destination side.