In decentralized finance (DeFi), "zapping" refers to the process of combining multiple transactions into a single, streamlined transaction to enhance efficiency and user convenience. This typically involves converting a single asset into multiple components required for a liquidity pool or vice versa.

For example, if you want to provide liquidity to a liquidity pool that requires equal parts of two different tokens, you would normally need to:

Swap half of your asset for the second token. Add both tokens to the liquidity pool. Zapping simplifies this process by allowing you to perform both steps in one transaction. Here's a more detailed breakdown:

How Zapping Works: Single Asset to Liquidity Pool Tokens:

Without Zapping: Swap half of your ETH for DAI. Add both ETH and DAI to the liquidity pool. With Zapping: Directly convert ETH to the corresponding liquidity pool tokens in one transaction. Liquidity Pool Tokens to Single Asset:

Without Zapping: Withdraw the liquidity pool tokens. Swap the resulting tokens back to your desired single asset.

With Zapping: Directly convert the liquidity pool tokens back to your desired single asset in one transaction.

Benefits of Zapping: Efficiency: Reduces the number of transactions required, saving on gas fees and reducing the complexity of the process. Convenience: Simplifies the user experience by automating the intermediate steps. Time-Saving: Minimizes the time required to interact with multiple smart contracts.

Use Cases in DeFi: Liquidity Provisioning: Users can easily add liquidity to pools without needing to manually balance their token ratios. Yield Farming: Simplifies the process of entering and exiting yield farming positions. Portfolio Rebalancing: Enables quick and efficient rebalancing of a DeFi portfolio with minimal steps.