Zaps can double deposits to DeFi protocols

Use Wido SDK to quickly add support for Zaps into your protocol to grow deposits and TVL.

This short post analyses how Zap transactions grow deposits and TVL. We will look at the on-chain data of three large DeFi protocols.

A quick reminder of what Zaps are: Zaps bundle several transactions into one to enable single-click deposits (or withdrawals), which leads to improved conversion and more TVL. For example: if you have USDC and want to get into the USDT/DAI pool, you will need to make multiple swaps to get USDT and DAI and deposit them 50:50 into the pool. Another example: if you have ETH and want to deposit it to the Yearn Curve stETH vault on web app, you will have to execute five transactions to get the desired Yearn Curve stETH token. Zaps bundle all those transactions together and calculate accurate token rates for you.

Additionally, Zaps offer other advantages on top of bundling several transactions into one:

  • Save users' fees. Multiple transactions mean multiple approvals for interacting with those contracts. While Zap contracts only require one approval.
  • Save users' energy. For swapping tokens or bridging, you users often need to use 3rd party apps. With Zaps, users can do any action in a single transaction from your app.
  • Better conversion rates. All transactions within the Zap transaction happen in a single block.

The simplicity of Zaps is enormous; hence, it's been very popular among users and is clearly visible in the data below.

Curve.Fi: Zaps contribute to ~90% of all deposits

Curve.Fi is a DEX designed for highly efficient stablecoin swaps. Users can add liquidity to the pools and earn fees. On Curve, users can choose whether to manually deposit token pairs in multiple transactions or deposit with a simple Zap that accurately calculates the right token rates for the user. We looked at 166 Curve pools on Ethereum available on Dune and compared the ratio between Direct vs Zap deposits.

Most Curve users prefer to use Zaps vs direct (manual) deposits.

Beefy: almost 75% of total deposits are driven by Zaps

Beefy is a yield optimiser. Their main product is Vaults which grows users' deposited tokens through a set of strategies. Beefy maximises rewards from various liquidity pools, AMMs, and yield farming opportunities. Beefy offers Zaps on most vaults on their platform.

Example of what Zaps on Beefy can do: allow users to deposit any underlying token of LP and automatically swap for the other token, add liquidity in an equal ratio to the QuickSwap pool, deposit the LP token to Beefy vault and return the vault token to the user. All of this is done as a single transaction. Beefy can offer great rates because all transactions are executed in a single block. This would not be possible without Zaps

We looked at the data from all QuickSwap vaults on Polygon.

You can see a growing share of users preferring to use Zaps over Direct (manual) deposits on Beefy.Finance.

Yearn: almost 50% of deposits come through Zaps

Yearn is also a yield optimiser and works similarly to Beefy. Yearn also provides Zaps for their vaults. It allows users to Zap popular tokens into the vault and internally performs a DEX swap, depositing into Curve and then depositing into the Yearn vault. Below we look at data from all the Zap-supported vaults on Ethereum.

Note: Wido is a proud zap provider for the vaults!

Zaps make a significant portion of the deposits to Yearn, averaging 40%.

Conclusion: Zaps increase deposits by more than 2x

Zaps are popular amongst users. And that's why Curve, Beefy, Yearn, and others have them.

Zaps will play an even more critical role in the rollup future. Multiple transactions will be necessary to move tokens around protocols across rollups and chains. Wido will make that future single-click, making DeFi UX better.

Are you considering building your custom Zaps? We recommend reading this first.

Wido: Zaps into any protocol

Wido is a multi-chain Zap infrastructure. Protocols can integrate Wido SDK to immediately add support for Zaps into their farms, pools or vaults.

Wido Router contract can easily support Zaps into most EVM protocols, pools or farms. Reach out, and we will quickly check if your protocol can be supported. The best part: we will build the Zap transaction bundles for you. You will only integrate it into your website using a few lines of JavaScript.

Wido Zaps also work cross-chain, letting users deposit into farms on other chains with a single transaction.

Creating a new Zap using Wido does not require smart contract deployment and audit. That's why we can do it so quickly.

You can try out a demo for any-to-any token Zaps here.

Are you interested in integrating Wido for your users? Feel free to reach out or check our documentation.