A Look At Zero Interest, A Borrowing Protocol

The project is built on the Solana blockchain and is modeled after Ethereum-based borrowing platform Liquity.

By
Utulu Hope
on
June 4, 2021
Category:
Breaking News

Introduction

Zero Interest has announced the launch of its decentralized borrowing protocol built on Solana. The platform took to Twitter on the 1st of June to announce its launch. The Solana blockchain now has a borrowing protocol modeled after the Ethereum-based interest-free borrowing platform, Liquity, narrowing the gap even further in terms of services provided. The protocol boasts several unique features similar to that of Liquity, such as interest-free loans and algorithmic governance. In this article, we will summarize the new protocol and the benefits users stand to gain. 

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Zero Interest: Decentralized Borrowing on Solana 

As the name implies, Zero interest is a decentralized borrowing protocol with zero interest built on the Solana blockchain. The Solana blockchain is fast, secure, and censorship-resistant; the Zero Interest team needed open infrastructure access, and Solana blockchain offers these features to any projects building on the chain. With all these unique features readily available, there is a tremendous foundation for any project built on the chain.

As stated earlier, the protocol is modeled after Liquity. The team aims to follow the vision of the Ethereum-based protocol by offering zero-interest loans. The inspiration behind this was gotten from Liquity’s Whitepaper, leading to Zero Interest deciding to implement similar principles on Solana. The combination of Liquity’s vision and Solana’s unique features promises to be an excellent match, and the Zero Interest team is excited about its prospects. 


Benefits Of Zero Interest Borrowing Protocol 

Zero Interest will have the same functionalities as Liquity, except with even lower fees thanks to Solana. Here are five benefits of using the borrowing protocol: 

  • No interest rate (0%)
  • The collateral ratio of 110%
  • Free from governance, with all operations fully automated via algorithm
  • Directly redeemable
  • Censorship-resistant

The collateral will be in SOL, which is the native token of Solana. Zero Interest will also have its own native token (VTT) and stablecoin (ROKS).


Final Thoughts

Now that Zero Interest is fully operational, the team plans to integrate many additional features for more user adoption in the coming weeks. Some of the other features include community building on Telegram/Discord, involvement in the ongoing Solana Hackathon, and partnerships with DeFi and Solana-based projects. The introduction of a borrowing protocol on the Solana blockchain indicates that Solana is neck-and-neck with other leading ecosystems like the Binance Smart Chain (BSC) and Ethereum. Its high speed and less transaction fees also offer a threat to other blockchains, especially Ethereum and its sky-high fee structure. In this light, the future is glittering like gold for Solana and its top projects, and Zero Interest could capitalize on that. 

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Utulu Hope

UC Hope is a passionate fan of crypto who could weave the latest event into sparks of inspiration and information. He leaves no stone unturned to get to the core of a story. Aside from writing, he spends his hours poring over algorithms and protocols, preparing for a future career as a computer programmer.