Zero Collateral Protocol

Basics

• Undercollateralized DeFi loans on Ethereum
• From their announcement blog (4-1-2020):

"Here, borrowers must only maintain collateral equivalent to the value of the loan minus the amount of total interest paid from all previous loans. With frequent loan repayments, the required collateral needed for borrowing eventually drops to zero.

The DAI stablecoin is utilized as the digital asset medium — deposited into the market by lenders that receive zDAI in return. zDAI can be redeemed for DAI by withdrawing supply from the market.

DAI can be borrowed from the market with a variable interest rate between 4% — 12% and with a payback date of 172,800 blocks (~30 days) per borrow.

If the loan is never paid back, a liquidation is run on the wallet. This resets the wallet’s maximum borrow and collateral needed to the initial amounts, 1 DAI and 100%, respectively."

• Zero Collateral loans with cDai, live on (7-2-2020) mainnet (but unaudited alpha software).

Tech

• From their announcement blog (4-1-2020):

"The next extension of Zero Collateral will be integrated with the Stratosphere [also done by the same company FabrxBlockchain] blockchain (with the core protocol continuing on Ethereum 🙂)."

Governance

• From their announcement blog (4-1-2020):

"Zero Collateral is designed to be a community-run protocol. Similar to efforts made by Kyber Network and MakerDAO, we plan to convert the Zero Collateral Protocol into a Decentralized Autonomous Organization (DAO) — the Zero Collateral DAO.

We are in the midst of exploring DAO platforms, including Aragon, DAOstack, and DaoHaus."

Team

• Ryan Berkun from FabrxBlockchain