Increment

Increment is a decentralized finance (DeFi) protocol that operates on both the zkSync Era and Flow blockchains, presenting a distinct value proposition in the on-chain derivatives market. The company was founded in 2021 and is headquartered in Vancouver, Canada. In May and June of 2022, Increment secured approximately $1.56 million in seed funding from a consortium of investors including ParaFi, Delphi, Skyvision, LedgerPrime, Dapper Labs, and Qiming Venture Partners, among others.

The protocol specializes in offering on-chain perpetual swaps, which are futures contracts without an expiration date, allowing traders to speculate on or hedge against asset price movements. A key feature is its use of automatically concentrated liquidity, which, through smart contracts and Curve math, focuses liquidity around the market price, aiming to create a more efficient and passive experience for liquidity providers. The system also employs dynamic trading fees that adjust based on the balance of the liquidity pools. This entire framework is built to be decentralized and non-custodial, leveraging zkSync Era, an Ethereum Layer 2 solution, to achieve higher security, increased throughput, and lower transaction costs.

For its users, Increment serves two primary functions. Traders can gain leveraged exposure to a wide range of assets without direct ownership, using crypto stablecoins and synthetic assets as collateral. Liquidity providers, on the other hand, can deposit funds into liquidity pools to earn trading fees and other incentives. The business model centers on generating revenue from the trading fees facilitated by the protocol. The platform integrates with Curve V2 Crypto Pools, using virtual assets backed by real crypto assets to facilitate trade execution and liquidity. Governance of the protocol is intended to be community-driven through the INCR token, allowing holders to vote on system parameters and future developments.

Keywords: decentralized finance, DeFi, perpetual swaps, zkSync Era, Flow blockchain, crypto derivatives, concentrated liquidity, algorithmic trading, on-chain trading, liquidity pools, crypto collateral, decentralized exchange, financial software, venture capital, seed funding, ParaFi, Delphi, Dapper Labs, Curve V2, INCR token