Zebra Protocol Builds DeFi Infrastructure with Product Innovation
Since 2020, tens of billions of dollars have been poured into the blockchain to participate in DeFi yield farming, and new products that address DiFi mining needs have emerged. From pledge mining to intelligent aggregate mining, more and more ways are made available for DeFi miners to make profits, and these products that have brought many innovations to the DeFi market have also yielded good returns. However, for users with small amounts of funds, low mining efficiency has always been a pain point, and they are in pressing need of a more efficient platform to link their great supply and demand for liquidity mining.
In such context, vault-based over-lending/borrowing protocols began to appear on the blockchain. As the first protocol to introduce the leveraged lending and borrowing concept, Alpha Homora was deployed on Ethereum in October 2020. Alpaca Finance was born on Binance Smart Chain (BSC). Over-lending/borrowing protocols, such as Pilot, also appeared on Huobi ECO Chain (Heco), which support users to get more funds to participate in liquidity mining through over-lending/borrowing. Similar to the leveraged trading on centralized exchanges, this kind of product amplifies users’ mining principal through leverage, thus improving fund utilization and allowing users to obtain higher returns with fewer funds.
The demand for over-lending/borrowing products has been validated by the market, but there are still some shortcomings in the current products. The first and foremost is the liquidation risk caused by over-lending/borrowing, as well as the security issues that are more concerned by users. After all, users want to earn high returns, but ensuring that their principal is not lost is a more fundamental need. At the same time, the current over-lending/borrowing products still have problems such as relatively single product features and lack of good application scenarios for governance tokens.
The market has validated the real demand for over-lending/borrowing, but the current products also have shortcomings, thus leaving opportunities for latecomers. Zebra Protocol hopes to bring better user experience and benefits through product innovation and unique economic model.
Zebra Protocol is a new decentralized vault-based over-lending/borrowing protocol. As one of the cornerstones of the DeFi ecosystem, the Protocol supports users to increase their fund utilization through over- lending/borrowing and amplifies their principal to participate in liquidity mining to gain more returns. A lending and borrowing pool is offered to users with low risk appetite to generate stable returns, while a highly leveraged lending and borrowing product is offered to users with higher risk appetite to amplify the volume of funds, thus gaining higher returns.
Zebra Protocol has the following advantages:
● Amplifying user benefits while safeguarding security
To address the pain point facing many users who lack available funds, Zebra can provide up to five times the leverage to help users make more money within a unit of time.
● Synthetic assets
Users can mint their own assets into z-Tokens through the platform’s synthetic assets. A portion of the pledged assets will serve as a source of borrowing currencies for leveraged mining users to gain returns on deposit currencies, and users can redeem their z-Token holdings at any time to turn them into the assets before synthesis.
● A variety of mining methods available for users to choose from
Users can pledge and lock their synthetic assets (z-Tokens) to earn Staking income (issued in the form of platform tokens).
The platform token ZBT initiates the liquidity mining mode, in which users can provide ZBT/cUSDT liquidity at designated DEX and pledge the liquid LP to the platform to generate ZBT income.
The platform also provides a series of LP mining pools, such as HT/USDT, ETH/USDT and BTC/USDT, for users to choose from. Users can invest in one of the LP token pairs and borrow the platform assets to balance LP for liquidity mining.
● The unique Boardroom mechanism allows token holders to gain long-term benefits.
20% of the depositor’s synthetic pool interest will be taken by the platform as interest tax, 10% of which will be used to repurchase ZBT back to the user, and the user will receive a dividend based on the proportion of ZBTs pledged on Boardroom to the total.
The bonus is paid on a daily basis, with the next cycle opening at 0:00 (SGT) every day. Users who pledge for less than one cycle cannot receive any bonus.
● Creating a decentralized financial system through more product features
Zebra will also open a robo-advisory system, to which users can connect their own funds. The system will consider the current fund utilization, borrowing interest, mining pool income and other aspects for the user to choose the mining pool investment with the highest returns.
At the same time, Zebra will add more DeFi track features and services in later development plans, such as trading, insurance and derivatives, to provide users with one-stop dencentralized financial services.
With Zebra Protocol, users can mint their own assets (USDT, HUSD, BTC, ETH, HT, etc.) into z-Tokens through the platform’s synthetic assets. These synthetic assets can be pledged and locked to obtain Staking income, which is paid out in the form of platform tokens. Moreover, users can pledge ZBTs on Boardroom and get bonus rewards according to the ratio. This allows users to earn the interest on the lent assets and the returns on the platform tokens gained by the pledge and locking, under the condition of extremely low risk.
Users who have the ability to resist risks and want to get higher yields can participate in leveraged mining, where they can invest in one of the LP token pairs and borrow the platform assets to balance LP for liquidity mining, thus gaining higher returns.
In the DeFi world, innovation is the primary productive force. Whether it is innovation in product functionality or innovation in economic models, Zebra Protocol has both, and offers innovative solutions to user needs, which has laid a good foundation for its long-term development. We look forward to seeing new changes Zebra Protocol brings to the DeFi market.