Zapper, a prominent DeFi aggregator and portfolio management tool, has unveiled the Zapper Protocol, an innovative initiative aimed at incentivizing the interpretation and contextualization of on-chain data. As part of this new protocol, Zapper plans to launch a native utility token, ZAP, in the fourth quarter of 2024.

In a recent announcement on X, Zapper shared its vision for the future: "Our vision of the future is one of onchain literacy. By making Ethereum readable, we're revealing to everyone what it truly is. Ethereum is a social network, and we're surfacing it."

The Zapper Protocol aims to simplify the process of indexing on-chain data through specially designed indexing templates. These templates are intended to make blockchain data accessible to users without advanced coding skills. This initiative marks the first phase of the Zapper Protocol, focusing on the interpretation layer.

This interpretation layer will enable users to participate as event interpreters and position interpreters. Event interpreters will transform complex blockchain transaction data into a readable format, while position interpreters will add missing positions or balances to Zapper. The platform will reward users for their data interpretations and facilitate payments for data access using ZAP utility tokens.

Founded in 2020, Zapper has already made significant strides in the DeFi space. In 2021, the company raised $15 million in a Series A funding round led by Framework Ventures, with participation from notable investors such as Mark Cuban and Ashton Kutcher’s Sound Ventures.

The introduction of the Zapper Protocol and the upcoming ZAP token reflects Zapper’s commitment to enhancing on-chain literacy and making blockchain data more accessible and usable for a broader audience. By simplifying the interpretation of Ethereum's complex data, Zapper is paving the way for a more informed and engaged user base within the DeFi ecosystem.