A Closer Look at DeFi's Rising Star ZeroLend0️⃣
A Closer Look at DeFi's Rising Star ZeroLend0️⃣
The zkSync ecosystem is bustling with activity amidst heavy anticipation of a token launch. ZeroLend is one of the platforms shaking up the DeFi world.
In this intro, we'll explore how ZeroLend is in detail and why it’s making waves.
Key Takeaways🍿:
ZeroLend has a dedicated insurance fund to protect users from potential issues🚨
The platform uses Account Abstraction to simplify user interactions and enhance accessibility within the DeFi space🏦
RWA lending allows users to tokenize and use real-world assets as collateral for loans🌎
What Is ZeroLend?🤔
ZeroLend is a decentralized lending and borrowing platform built on zKsync. At its core, ZeroLend is a DeFi protocol spanning multiple chains, providing borrowing and lending services for a range of assets.
It offers a seamless, permissionless experience where users can leverage their crypto assets as collateral to access instant loans, without the need for intermediaries or traditional banking processes.
ZeroLend stands out as the only lending protocol on zkSync with its dedicated insurance fund. A portion of the platform's generated fees is directed towards this fund. Should significant issues arise, such as smart contract vulnerabilities or unexpected system failures, the insurance fund serves as a safeguard, providing compensation to impacted users.
ZeroLend raised $25 million from investors including Momentum 6, Blockchain Founders Fund, Morning Star Ventures, Banter Capital, etc.
ZeroLend's Account Abstraction: A Game-Changer in DeFi🧰
Management of DeFi wallets has been a huge concern, especially for new users. Private keys and wallet security present major challenges.
ZeroLend adopts Account Abstraction (AA) to simplify user interactions and enhance accessibility within the DeFi space. By storing assets in smart contracts instead of externally owned accounts (EOAs), ZeroLend creates programmable wallets that streamline transactions and mitigate common issues like wallet security and gas fees.
This approach enhances security by safeguarding assets in smart contracts, reducing the risk of private key compromise. Additionally, it expands asset usability by enabling the settlement of transaction fees with a broader range of assets, thereby increasing flexibility.
ZeroLend’s account abstraction also improves accessibility by integrating features such as social logins and delegated transactions. Users benefit from increased control over their funds while maintaining custody, resulting in a more efficient platform overall.
Another exciting feature enabled by AA is Paymaster. By leveraging zkSync Paymasters, ZeroLend ensures that transactions exceeding $5000 are seamlessly validated without imposing gas fees on users.
The integration of Zyfi's Paymaster API empowers users to pay gas fees using a variety of ERC-20 tokens, including $HOLD, $DAI, $USDC, and $ONEZ, enhancing flexibility and accessibility within the platform.
RWA Lending On ZeroLend🏦
RWA tokenization enables the representation of real-world assets, such as stocks, government bonds, real estate, and commodities, as crypto tokens on the blockchain.
Popular examples include $USDT and $USDC, which represent tokenized versions of US dollars. The RWA market is projected to grow exponentially, reaching $16 trillion by 2030, according to the Boston Consulting Group.
To enable users to leverage the growing RWA narrative, ZeroLend offers RWA lending and borrowing services. This approach will expand ZeroLend’s appeal by attracting a wider pool of lenders and borrowers.
RWA lending also helps to reduce the reliance on the over-collateralization requirement for borrowers to access loans. RWA lending addresses this challenge by allowing borrowers to tokenize real-world assets, such as real estate or bonds, as collateral to secure loans, even if they lack substantial crypto reserves.
ZeroLend’s Upcoming TGE👀
ZeroLend has announced that its TGE) is scheduled to take place on May 6th. Approximately 15-17% of the total token supply will be distributed to the community through an airdrop.
Notably, over 90% of this airdrop allocation will be distributed to suppliers and borrowers on the ZeroLend platform. Airdropped tokens will have vesting terms of 40% upfront, a 3-month cliff, and then linear vesting over the subsequent 3 months.
ZeroLend Airdrop Guide🪂
While the TGE is almost here, it’s still possible to farm the airdrop.
Here's a condensed guide for earning rewards with ZeroLend:
Verify on Discord at airdrop.zerolend.xyz and join the ZeroLend server discord.gg/zerolend for 100 Zero Gravity points.
Say "GM ☕️" in the 'gm' channel daily for 10 Zero Gravity points.
Supply assets worth $100 or more on ZeroLend
Borrow crypto on ZeroLend to earn rewards daily
Engage with partner projects like $PYTH, $MANTA, $CAKE, and $MAHA for additional rewards.
Maximize rewards by supplying $ETH on the Ethereum LRT Market and referring others for a 20% bonus.
With a solid roadmap and strong project fundamentals, ZeroLend is poised to become a major player in zkSync’s DeFi ecosystem.
It’s important to note that this research was written for the sake of education and pure entertainment value!
Please DYOR on every project, and remember, this is not investment advice🙏
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