# Case Study: Koi Finance

<figure><img src="/files/J0lRhjPfptiZbtct3kGr" alt=""><figcaption></figcaption></figure>

Koi Finance is one of the biggest DeFi applications on ZKsync in terms of activity and TVL. They offer a comprehensive suite of solutions for liquidity providers, including **stable pools, concentrated liquidity pools, and staking farms** for LP tokens. As a DAO, Koi Finance is governed by veKOI, a vote-escrowed NFT that enables holders to actively participate in treasury management and protocol rewards.

## Gas Fees Management

However, despite its innovations, Koi Finance, like many decentralized protocols, faces a recurring challenge: gas fees. These often unpredictable fees can hinder user engagement and complicate the experience of using decentralized applications (DApps). Every on-chain action, such as token swaps or withdrawing liquidity rewards, incurs gas costs that can discourage users from interacting with the platform frequently.

## Implementation of Zyfi

To address these challenges, Koi Finance has integrated Zyfi, leveraging Paymasters and Intents on ZKsync Era to optimize gas fee management. Through this collaboration, Zyfi enables several key improvements for Koi Finance users:

* **Free LP activities**: Add/remove liquidity on their V3 and classic pools
* **Free Swaps**: Gas-free swaps on their swap page
* **Free Rewards Collection**: Collect rewards from their pool without gas fees
* **Free Locking/Unlocking**: Locking governance tokens from Koi to veKOI is free

<figure><img src="/files/bKeLde88J8h5LH0NUFNQ" alt=""><figcaption><p>Gas-free deposit in a USDC.e/ETH pool on Koi Finance</p></figcaption></figure>

Thanks to Zyfi's integration, Koi Finance offers the best on-chain user experience, where users no longer need to think about gas fees.&#x20;

Additionally, the gas fee sponsorship model has attracted new users to Koi Finance, encouraging them to try a system where transaction fees are sponsored, further boosting the platform's popularity on ZKsync Era.

## UX/UI Implementation

To summarize, the UX/UI implementation followed a structured process:

1. The **first** step was to determine which on-chain actions and UI improvements to display. They aimed to eliminate gas fees for all on-chain actions (transactions and approvals).
2. The **second** step involved integrating the API into their front end, which took about 1 day, ensuring the correct on-chain actions were triggered to sponsor activities like swaps, LP deposits, and reward collections.
3. The **final** step was implementing changes to the UI. They added a simple box with the label "Gas-less" for all available on-chain actions. This took an additional 0.5 days of development time.

And that’s it! 🎉

<figure><img src="/files/ImHU2rBvHcS34nKYrIRn" alt=""><figcaption><p>Gas-free swaps on Koi Finance thanks to Zyfi</p></figcaption></figure>

In total, Koi Finance needed **1.5 development** day to integrate the entire product into their front end, providing an exceptional on-chain experience for users.

## Results

Koi Finance attracted many users after the Zyfi integration, sponsoring over **52,000 transactions** as of October 10, 2024, with an average of 800 sponsored transactions per day.

<figure><img src="/files/6TxuBFN0kC95wWS1h032" alt=""><figcaption><p>Daily sponsored transactions on ZKsync Era on Koi Finance using the Zyfi paymaster</p></figcaption></figure>

## Conclusion

The integration of Zyfi with Koi Finance represents not just a technological breakthrough but also a revolution in user experience within the DeFi space. By removing the constraints related to gas fees on swaps and LP activities, Zyfi has enabled **Koi Finance** to position itself as a leader on the ZKsync Era blockchain while providing users with a smoother, more affordable, and accessible experience.


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