Zoracles 2.0— Liquidity Swap Ecosystem

Zora Labs
3 min readJun 10, 2021
Photo Courtesy: Uniswap.org

“If I had asked people what they wanted, they would have said faster horses.”

Henry Ford

This quote by the Model T Inventor and Great American Industrialist Henry Ford rings true in today’s cryptocurrency landscape as product development is progressing at a very rapid pace. Uniswap’s announcement regarding their V3 upgrade was met with skepticism and muted fanfare due to it not addressing its users most immediate needs including high gas fees and impermanent loss.

We feel this is a short-term oversight by the crypto community and have aligned our product vision with supporting Ethereum’s largest dApp by users and revenue.

Courtesy of CryptoMode (Early Jan)

Zoracles Ecosystem

Along with a website refresh, The Zoracles Development Team is building the foundation of a dAPP that will focus around services for Uniswap V3's concentrated liquidity while being “Powered by Zoracles.”

“Powered by Zoracles” simply means we will leverage our oracle technology and potentially zero-knowledge proofs to access data that helps LPs make critical decisions around their capital allocation.

Also, we plan to leverage our Zora Score to extend credit to Zoracles Liquidity Providers that support our project.

Core Strategy

We want to target LPs that will need to manage their liquidity by building data feeds that provide insights into the performance of their concentrated liquidity.

Our core NFT Swaps product will be integrated to support Uniswap V3 NFTs along with Zora Score. This will provide the foundation of Zora Credit by enabling uncollateralized lending via “liquidity lines.”

Platform Features


  1. Fees Earned — Uniswap V3 allows LPs to withdraw their fees. This is an important data point we will provide.
  2. Impermanent Loss — Our formula will measure impermanent loss to inform LPs when to consider withdrawing.
  3. Transaction Costs — We will provide a snapshot of the costs to maintain and adjust their concentrated liquidity.


Our NFT Swaps product was deployed to showcase the underlying mechanics of the technology and its integration with our proprietary Zora Score.

We will continue to shape and customize this functionality to better support Uniswap V3 NFTs.

Liquidity Lines

To access uncollateralized lending or liquidity lines of credit, you will need to meet the following criteria:

  1. Zora Token Holder — 30 days minimum
  2. Zora Score — 500 or higher per wallet
  3. Zora Liquidity Provider — $10K or more

Road Ahead

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

In conclusion, we feel this quote is fitting because when the crypto community wakes up to what Zoracles is building, it will be a revolutionary platform for the blockchain era. Power is being transferred from the large liquidity providers that have endless teams to create automated bots and algorithms to outperform the passive provider.

Zoracles solves this and levels the playing field and we hope you join our community as we bring this product suite to market.

About Zoracles

We are building a platform powered by Zoracles technology that empowers DeFi users with the data, tools and capital to be competitive in global decentralized financial markets.

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