zkCRO

What is zkCRO?

zkCRO is the native gas token of the Cronos zkEVM blockchain.

Powered by Veno Finance, it is a liquid staked token backed by LCRO. This means that each zkCRO is backed by an amount of CRO staked on the Cronos POS chain.

The zkCRO/CRO exchange rate varies over time, to reflect accumulated rewards from CRO staking. When rewards are accumulated, the zkCRO/CRO exchange rate increases. Conversely, in case of slashing event on the Cronos POS chain, the value of zkCRO may be impacted.

How does it work?

When users deposit Ethereum mainnet CRO on the Cronos zkEVM native bridge, they will receive zkCRO which is a yield-bearing version of CRO. The price of zkCRO is expected to appreciate over time relative to CRO, reflecting the accumulated yield. Conversely, in case of slashing event on the Cronos POS chain, the value of zkCRO may be impacted.

zkCRO is created by the decentralized Veno Finance protocol, in partnership with Cronos zkEVM.

How is the yield generated?

The CRO assets will actually be bridged over to the Cronos EVM chain by Veno Finance, in order to be staked on Veno. This means that the CRO will be sent to Cronos POS chain to be staked. Veno Finance will issue LCRO (liquid CRO) to back every single zkCRO issued, and the corresponding LCRO will be locked on a smart contract on Cronos EVM.

How can users convert zkCRO back into CRO?

Given that each zkCRO is backed by LCRO locked on Cronos EVM chain, users can redeem their zkCRO on Cronos zkEVM chain and they will receive CRO on Cronos EVM chain in return.

When users send zkCRO back to the Cronos zkEVM native bridge, the corresponding LCRO is unlocked on Cronos EVM and an unstaking request is initiated. Given that unstaking takes 28 days on Cronos POS, users can claim their CRO on Cronos EVM after 28 days plus up to a week of processing time.

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