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Zild: A breakthrough in the field of decentralized lending



According to an industry report recently disclosed by Messari, a professional data analysis company, the loan deposits of the three largest lending protocols Aave, Compound, and MakerDAO on the Ethereum DeFi platform hit a record high in the first quarter of 2021. Over $25 billion in deposits were obtained there.

However, outstanding loans also hit a record during the quarter, with tens of billions of dollars in funds being reallocated to other users on the platform. About 53% of the loans came from Compound, while MakerDAO and Aave accounted for 30% and 17% respectively.

After the second half of 2020, the DeFi market continues to grow. With the start of the bull market in 2021, more than $55 billion has now been "locked" in various decentralized financial agreements, including lending, DEX, and NFT.

Judging from the current situation of lending DeFi projects, it does meet the real needs of many investors and keeps the data on the chain rising. TVL (Total Value Locked: Total Value Locked), as the core indicator of the development of the DeFi sector, reflects the current market investor demand for DeFi business and the total capital scale of the industry.

Switcheo Network will cooperate with Zilswap to launch an NFT market: On September 7, Switcheo Network announced that it will launch an NFT market based on Zilswap, which is expected to be launched on September 15 to commemorate the first anniversary of Zilswap. Zilswap, a decentralized financial ecosystem based on Zilliqa, will partner with the Switcheo platform to host an accessible and inclusive NFT environment. The Switcheo platform is a layer 2 interoperability network. Switcheo is also compatible with the Ethereum network as this network provides cross-chain bridges. This will allow NFTs to be minted, traded and stored on Zilliqa. (Crypto Adventure)[2021/9/7 23:06:52]

Lending is an essential and important business in various financial scenarios. It can not only improve the utilization rate of funds, but also activate the liquidity of market funds. From this perspective, DeFi lending products are bound to become one of the important infrastructures for decentralized financial applications.

However, lending projects on the market, such as Compound, mainly follow the "over-collateralization" rule. Simply put, users who want to borrow funds must provide tokens as collateral, and the value of these tokens is higher than their actual value. desired loan. Specifically, the existing "over-mortgage" loan agreements have extremely low efficiency in the use of funds, and the gap between the scope of asset support and risk prevention and control mechanisms and market development has gradually widened.

Huobi Global has now resumed deposit and withdrawal of ZIL: According to the official announcement, the ZIL mainnet upgrade has been completed, and Huobi Global has now resumed the deposit and withdrawal of ZIL. [2021/6/1 23:01:52]

The Zild lending agreement is good at capturing the needs of users in the market. Through the new design and innovation of the lending agreement, it can improve the utilization rate of users' funds, allowing users to enjoy the loan economy while ensuring the safety of funds. At the same time, all kinds of digital assets in the wallet are linked to flow into various projects in the DeFi field, expanding the DeFi ecological space.

01Capturing market demand, Zild came into being

From a macro point of view, lending is an indispensable basic business of the entire financial industry, which will greatly improve the liquidity and management efficiency of funds. Modern commercial banks also use this as their main business to operate effectively. For example, when a bank appears When the position is insufficient, the required funds can be obtained by means of repurchase agreements or interbank lending, which can make up for the insufficient position.

DeFi decentralized finance is a subdivided emerging field of the entire financial industry. The important role of lending is self-evident. However, when facing extreme market conditions (such as the black swan event), existing lending platforms led by MakerDao and Compound have emerged Mass liquidation of assets. A large number of liquidated assets were auctioned off by liquidators and liquidation robots at extremely low or even 0 DAI prices, causing huge losses to borrowers and lending platforms.

Huobi will launch USDT-based perpetual contracts for ZIL, BAND and other currencies at 14:00 on December 23: According to the official announcement, Huobi Futures will launch ZIL, BAND, ONT, SNX, AVAX and GRT varieties USDT standard perpetual contracts. [2020/12/22 16:03:29]

The DeFi lending market has increasingly strong demand for more excellent DeFi products that can withstand the negative impact of high event levels. The Zild project team believes that with the upgrade and optimization of Ethereum, Ethereum still occupies a dominant position in the DeFi field, so Zild chose to deploy In Ethereum, and the interest rate model, mortgage model, liquidation logic, etc. of existing DeFi lending products have been greatly improved, so the Zild protocol came into being.

The Zild lending protocol is a set of smart contracts deployed on the Ethereum (Ethereum) public chain that supports all ERC-20 asset deposits, loans, and debt settlement functions. Zild has the basic application functions of the current mainstream DeFi lending protocols. At the same time, Zild has introduced a new model in terms of asset support scope and risk prevention and control mechanism, making it more widely applicable and safe.

The main network of Zilliqa has been upgraded to version v4.6.2, and the pledge service is still being repaired: Zilliqa tweeted that the main network has been successfully upgraded to version v4.6.2. All non-staking transactions have now resumed. We have started to fix the staking smart contract. As mentioned, this will take 48 hours. We will post a notice at that time. [2020/10/20]

The popularity of Zild is inseparable from its strong community consensus. It is estimated that the total number of currency holding addresses in the entire network will reach 30,000 before the product is officially launched. After the launch of Lending, it is estimated that more than 100,000 people around the world will participate in TVL. (TVL stands for Total Value Locked, which generally refers to the total value of digital assets mortgaged by users in an encrypted token project. People often use the growth of TVL to refer to the upward movement of token projects)

02 Multi-lending pool model to meet the demand for long-tail asset lending

Most of the existing DeFi lending agreements in the market adopt the Compound single lending pool model. Assets in the same lending pool can be used as collateral assets and lending target assets.

In this model, any fluctuation in the value of an asset will affect other assets in the lending pool. For example: the current deposit value of asset A in the lending pool is $10 million, and the depositor lends asset B (stable currency) worth $6 million by pledging asset A. When the market price of A drops sharply to $4 million, the borrower who lent asset B will choose not to repay the debt and give up the pledged asset directly. In this case, all users who deposit asset B will suffer a loss of assets exceeding $2 million.

News | Zilliqa finally decided to release the mainnet on January 31, 2019: According to ethereumworldnews, the Zilliqa (ZIL) team finally decided to release the mainnet on January 31, 2019. Previously, the mainnet was scheduled to launch in the fourth quarter of 2018, but the team delayed the time to release a safe and reliable product. [2018/11/17]

Zild creatively adopts the model of multiple lending pools. The advantage of this is that under the multi-lending pool model, assets between different lending pools are insulated from each other. After the user deposits assets in the lending pool A, he can only borrow the assets supported by the lending pool A.

Under this model, a borrowing and loan matching mechanism that is flexibly allocated by the demand market has been formed. For those assets with large market liquidity and relatively stable value, they can form a large-scale basic asset lending pool. For those assets whose value fluctuates greatly or has not undergone sufficient value verification, it is also possible to establish a loan pool with a small initial asset size by flexibly setting indicators such as pledge rate and liquidation penalty rate.

It can be said that the Zild protocol provides the possibility for long-tail assets to enter the field of DeFi lending.

03Customize the parameters of the lending pool to provide a more flexible interest rate mechanism

For lending agreements, the interest rate formation mechanism is one of the most concerned elements in the user participation process. At present, most lending agreements in the market are dynamically adjusting the interest rate according to the utilization rate of funds. A large amount of an asset is being lent out, causing interest rates to rise. When the interest rate rises to a certain range, it will suppress the loan demand of the asset, so as to achieve a state of dynamic balance between supply and demand. the

Typically, the aforementioned interest rate parameters are determined by the project team at asset creation. Although adjustments can be made through DAO governance in some cases, it is often difficult to respond to changes in the external market in a timely manner.

Through Zild, you can customize the creation of loan pools. Under this mechanism, the same asset can create different lending pools. The creator can independently define the rate of interest rate change based on his own judgment of the asset market demand. The creator can also give the lending pool more flexible security capabilities by defining the reserve rate.

04Support spot leverage to enhance the efficiency of user funds

To sum up the current lending market environment in one sentence, that is, the existing "over-collateralized" lending agreements have extremely inefficient use of funds, which seriously hinders the development of the DeFi market. Zild, on the other hand, allows users to borrow money through asset mortgages, not only to obtain capital turnover capabilities, but also to obtain a certain amount of leveraged capital capabilities through revolving pledge lending operations.

For example, users who are bearish about the subsequent market trend of ETH tokens can mortgage the stable currency USDT, lend ETH and sell it in the market in exchange for USDT. Then deposit the resulting USDT into Zild and continue to lend ETH to sell. After performing multiple operations through the above process, the user will obtain a certain multiple (about 2-4 times depending on the mortgage rate of the pledged assets) of the short-selling ability of leveraged funds.

It is not only the substantial increase in liquidity mining, staking, and reinvestment income per unit time, but also Zild provides users with more arbitrage opportunities. Zild can serve the purpose of participating in the DeFi market for risky, stable and professional users of different types, and also open the door to the decentralized financial market for ordinary investors.

05Recent Zild information focus

According to relevant media reports, the Zild Lending lending agreement is about to go online, and has passed the double security audit of the American auditing company Certik and the Chinese auditing company SlowMist Technology. At present, it has entered the relevant testing stage and is expected to be officially launched on May 19; at the same time, the Zild project token will be listed on Bittrex, the world's fifth-ranked US exchange, on May 13.

06 Conclusion

The popularity of DeFi has allowed new users and new funds to continuously join the decentralized financial network, which has created a larger and more efficient DeFi market, and the Zild lending agreement is in the right place.


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