What is ZeroLiquid? ZeroLiquid is a Self-Repaying Loans platform built and developed based on today’s extremely powerful LSD platform. So if ZeroLiquid has anything interesting, let’s find out in the article below.
To better understand ZeroLiquid, people can refer to some of the articles below:
- What is LSDfi? The First Puzzle Pieces & Potential In The LSDfi Array
- What Are Liquid Staking Derivatives (LSD)? Top 5 LSD Projects with Great Growth Potential
- What is Cat-in-a-Box Finance? Overview of Cryptocurrencies Cat-in-a-Box Finance
ZeroLiquid Overview
What is ZeroLiquid?
ZeroLiquid is a decentralized lending protocol with features such as zero liquidation, zero interest, and self-repaying, which allows users to use LSTs to issue loans. It can be said that ZeroLiquid is a Self-Repaying Loans.
The good thing about ZeroLiquid is that it takes advantage of rewards from LSTs, thereby gradually reducing the user’s debt without the user having to repay the debt. Over time, the debt will gradually decrease and at a certain point the user will no longer have debt.
ZeroLiquid’s mechanism of action
When users participate in using ZeroLiquid products, they will go through a number of steps as follows:
- Step 1: Users deposit ETH or LSTs such as stETH into the protocol.
- Step 2: If the user deposits ETH into the protocol, the ETH will be swapped to LST selected by the user.
- Step 3: All LST will then be transferred to the LSD Token Vault.
- Step 4: Users will borrow zETH (zETH is issued by ZeroLiquid and pegged at a 1 to 1 ratio with ETH).
- Step 5: Borrowers can reclaim their collateral at any time by depositing zETH back into the protocol.
stETH in the LSD Token Vault will continuously generate profits and the protocol will harvest these profits, reducing users’ zETH debt. Because of this model, users will not worry about their assets being liquidated.
For example: You deposit 10 stETH into ZeroLiquid and borrow 7 zETH. Within 1 year, 10 stETH in the LSD Token Vault generates a profit of 1 stETH with an APR of about 10%. ZeroLiquid will charge 10% of users’ profits, which means the net profit is 0.9 stETH. Now their debt to the protocol is no longer 7 zETH but only 6.1 zETH. And to get the collateral back they just need to deposit it back into the 6.1 zETH protocol.
Peg retention mechanism for zETH
Creating a derivative asset and the price of that asset being anchored to an original asset requires the project to build a price retention mechanism. With zETH, the ZeroLiquid solution offers the following:
- Arbitrage: If the price of zETH is higher than ETH on the market, users can borrow zETH and then sell it on the market and vice versa.
- Deep Liquidity: The protocol will use ZERO to incentivize users to provide liquidity into the zETH – ETH pool.
- Zero Fund: Is a reserve designed while the market fluctuates strongly, it will directly intervene in the zETH – ETH liquidity pool to keep the peg for zETH.
- Loan limit: ZeroLiquid applies a borrowing limit to avoid having too much zETH on the market. The supply of zETH will be expanded in a controlled manner.
- Protocol Own Liquidity: ZeroLiquid owns the liquidity of the ZERO – ETH pool on Uniswap V3 and the fees generated from this pool will be used to add liquidity to the zETH – ETH pair.
Development Roadmap
August
- Product audit
- zETH Liquidity Mining
- Mainnet and product launch
- Launching ZERO Staking program.
- Bug Bounty Program.
- Zero Gravity Scheme.
Besides, ZeroLiquid also officially cooperates with some major LSDfi platforms on the market such as Rocket Pool and unshETH.
Core Team
Update…
Investor
ZeroLiquid does not raise any funds.
Tokenomics
Information about ZeroLiquid tokens
- Token name: ZeroLiquid
- Code: ZERO
- Blockchain: Ethereum
- Token classification: ERC 20
- Contract: 0xb0ed33f79d89541dfdcb04a8f04bc2c6be025ecc
- Total supply: 100,000,000
Note: According to DAO, the project has decided to eliminate 69.42% of the total supply, leading to the total supply of ZERO dropping to only 30.5M ZERO
Token Allocation & Release
- Liquidity: 59%
- Development & Marketing: 19.6%
- Staking / LP Incentives / Liquidity: 19.34%
- Governance / Community Pool: 32.78%
- Core Contributor: 2.29%
A total of 43.9% will be opened gradually in the first year, of which 22.6% of the total supply will be opened at the time the token is deployed.
Token Use Case
Users who hold ZERO will receive the following benefits:
- Protocol revenue sharing.
- Deflation as the protocol burned nearly 70% of the total supply of ZERO tokens.
- Vote on protocol development proposals.
Exchanges
Users can buy and sell ZERO at Uniswap V3.
Project Information Channel
- Website: https://zeroliquid.xyz/
- Telegram: https://t.me/zeroliquid_xyz
- Twitter: https://twitter.com/ZeroLiquid_xyz
- Medium: https://zeroliquid.medium.com
- Discord:
Summary
ZeroLiquid hopes to open a new form of Lending & Borrowing in the Crypto market in general and the LSDfi industry in particular. Can ZeroLiquid be successful in the future? Hopefully through this article everyone can understand more about what ZeroLiquid is?