No wonder MXC Matcha is also joining on ZOS: arbitrage is the way forward for DeFi

ZOS Lending Network
Nov 1 · 8 min read

Diversification is one of the most important investment methods. Although the space is not large, it has attracted countless funds because of its certainty. In essence, investment is the pursuit of matching between the asset side and the debt side.

In an investment, if it can attract good returns and have low costs to debt then it can already be seen as half successful. An important prerequisite for Buffett’s definition of success is that the cost of capital raised by Berkshire Hathaway is negative and cannot be redeemed.

Few people realize that credit is an understated invention of humanity, and has a history even earlier than currency itself. Shells, copper coins, silver, gold, paper money, and bitcoin are all ideas of credit.

The concept of interest bearing loans date back to the Stone Age though back then it was the crops of farmers at harvest time. Private lending is a barometer of the economy. Looking at China’s long history, the credit structure has been very underdeveloped. Commercial credit is generally used for speculative activities. In the past few years, Wenzhou’s private lending collapse was a true portrayal of this event. This year’s online lending crash is also a repetition of that same history.

Economists once regarded Bitcoin as a machine of trust. Indeed, the blockchain technology at the bottom of Bitcoin replaces people with machine trust, especially the centralization of human-centered institutions. In 2008, after Wall Street’s 100-year investment bank Lehman collapsed, Nakamoto published a white paper on Bitcoin, which introduced how to issue electronic money on the Internet through encryption. If the Internet is the exchange of information, then the blockchain is the exchange of value. Bitcoin is the first application in the world that can realize value exchange without relying on centralized institutions. Looking back at history, human beings have always operated around credit, lending, and value exchange. Each era has a model of borrowing. And in recent years, P2P lending has been trending. Yet none of those previous concepts in history can even be compared to P2P. Why is that? The main lending model of P2P is not actually very innovative. More importantly, most of the platforms have now moved away from the information mediation function and play the role of a credit intermediary, similar to the business of traditional banks.

So is there no way to solve the problem of borrowing? The answer is yes, and finally DeFi is likely to solve such problems effectively.

In the DeFi system, everything runs with smart contracts and code as the center. There is no black box, no privacy information is reviewed or utilized, all data is transparent, no mutual trust, no need for any entry barrier. All assets are certified and form a borderless open financial system around the world, enabling all digital assets to trade freely in the global market.

Profit is the fundamental driving force behind the digital currency market. And as long as there is a wealth effect, the market will not die. To make a truly market-ready DeFi product, we must work hard from an arbitrage perspective. At present, examples such as ZOS which was one of the first movers have tried various plans on DeFi such as lending with digital assets, or chain transactions.


ZOS is an open financial system that decentralizes lending, stable coins and transactions, and is a sustainable and profitable financial public chain. ZOS is a decentralized financial network that connects fiat and digital currencies and builds a distributed financial system through three pillars, allowing system participants to conduct risk-free arbitrage.

The first pillar: ZOSLending, users cross-chain mortgage digital assets and global financial institutions can provide users with fiat currency lending services, to achieve fiat currency on-line compliance lending;

The second pillar: ZUSD, the first bitcoin-based over-collateralized issuance of stable debts ZUSD, introducing a financial innovation model of “low-interest loans, holding money and interest” to reduce global lending rates;

The third pillar: ZOSEx, launches the chain settlement, the decentralized trading business under the chain, allowing the chain of fiat and digital currencies to be exchanged freely.

The ZOS ecosystem is divided into three levels: the network layer, the financial business layer and the user layer. Each level has different participants, and different governance models and reward models. Each participating role can earn money and participate in its governance.

Financial business layer: If you are an institution, you can become a financial business node (operator) and open a “bank” to carry out deposit, loan, remittance, and transactions.

User layer: If you are a user, you can lend interest income or you can hold ZUSD to get interest income, or you can trade it to get reward income. You can also be a referee and earn the reward through recommendation. User relationships on the ZOS chain are open, and nodes can set up their own reward system, which is part of open finance.

Network layer: ZOSChain pioneered the Staking economic model of DPoS+PoS double-mining, which can entrust mining or mortgage mining. This makes the network more robust through a competitive model. ZOS introduces the bank capital adequacy model and mortgages its own assets before it can become a trustee for mining. If the user does not want to entrust mining, he can also obtain the mining income like the current deposit in the bank.


Also, not only can you mine by holding ZOS but also BTC, this is the value of ZOS financial public chain. This will transform the pattern (with risk) of depositing interest through quantitative transactions and becoming an arbitrage of risk-free mode of borrowing interest and handling fees. It can be said that ZOS is trying to achieve something similar to Buffett’s arbitrage.

The node reward program will be launched in the near future. We all know that the ZOS node election last year raised the value of ZOS. ZOS allowed early participation in the ecological node, and allowed users to enjoy the network

ZOS allowed users to have early access in the ecological node so to understand the system and the reward it entails. The three levels constitute a complete system, and everyone can understand that there are many business opportunities here. ZOS is characterized by direct access to fiat currency loans, and currently supports Canada’s Canadian dollar, Philippine peso and Singapore SGD. Mortgaged digital assets can directly access these fiat currencies.

The second is to stabilize the currency loan. ZOS adopts the model of stabilizing the currency bond by issuing the digital bond stabilization currency ZUSD through the mortgage digital assets. The mortgage debt can be automatically generated through the smart contract, and a certain proportion of ZUSD is obtained.

These ZUSDs can be converted into fiat and other stable currencies directly through C2C, and can also be traded directly with mainstream digital assets such as BTC and ETH on the ZOS platform. Investors holding ZUSD can also receive interest income while the hedged digital assets are fluctuating. These two points are the biggest features of ZOS lending.


Many people are looking for the next trending point of digital currency. DeFi is undoubtedly a major talking point. Digital banking business, lending, and arbitrage are the most important, at least 100 trillion US dollars.

Vitalik Buterin and Daniel Larimer are also optimistic about DeFi at the same time. They agree that the blockchain can first realize the application of finance and games. Elon Musk once asked Buterin on Twitter: Which features on Ethereum has the most potential? Buterin responded very seriously to 5 tweets, the first of which was about DeFi. Whereas Larimer on Twitter: “When it comes to DeFi, Ethereum has failed. Ask Bitfinex, Bancor or other projects that want to implement a simple order book on Ethereum. EOS has learnt the lessons from the earliest DeFi platforms. Only EOSIO can achieve any results with low speed, low latency, ordered indexing, floating point and C++.”

Traditional flat P2P lending is with economic downturns hence some P2P platforms have changed from information brokers to credit intermediaries. And now the industry has produced many Ponzi schemes. This process is to forge the non-existent target package and lure the investor with rigid redemption and high yield, and finally transfer the money in the pool, or continue to roll out to create a larger Ponzi scheme. One of the most famous and typical examples of P2P Ponzi schemes is “e-rental.” DeFi doesn’t do this because it’s done through smart contracts, and smart contracts make bad money relatively good.

Mortgage assets are controlled by smart contracts, so there is no need to worry about malicious market manipulation. After the time limit expires, the smart contract will automatically take back the borrower’s mortgage assets as credit compensation, and is not worried about the borrower not repaying the loan.

ZOS clarifies the boundaries of centralization and decentralization and creates a whole new incentive mechanism, all of which is done through smart contracts. We know that EOS super nodes are indispensable to the EOS ecosystem, and ZOS has similar various nodes. ZOSChain includes: DPOS+POS consensus, 3 seconds out of block, 1000+TPS, side chain mortgage, bank account mode.

Furthermore, recently Matcha Exchange has reached a strategic cooperation with ZOS in recent days, and will become a super node and lending operator, and cooperate with ZOS to develop DeFi business. This cooperation will promote the common development of both parties in compliance and global business. They be launching on July 31 (now online). The Matcha Exchange is the dark horse of 2019, and the platform has increased by several hundred times. In just a few months, it has more than 2 million registered users, 200,000 daily users, daily trading volume of more than 600 million US dollars, and currently ranked close to the top 10 in the world’s exchanges. Their team is young but professional, creative, and combines three top teams in the industry in terms of safety to create a first-class security system.

At the same time, MXC overtook many other exchanges that were born at the same time, and became the eye-catching star on the track. At the same time of rapid development, in order to advance the platform, MXC continues to use high-quality digital currency to select high-quality technology. The cooperation between ZOS and MXC is also due to the deep compatibility of the values of the two companies. Both believe only through more available applications of blockchain technology in the real world: can allow blockchain to flourish.

Looking into the past, most of the unreasonable things before are now very reasonable. Hash calculation is the labor cornerstone of the blockchain world. It is the most suitable distribution according to work in the blockchain world. The intelligent contract is the concentrated expression of the decentralized system in the future. What ZOS is trying to achieve is ahead of its time.

For the future, what we have to consider is not what we will do in the future, but what we should do today to create that future. The biggest application in the field of crypto assets is to leverage the smart contract to solve the P2P credit problem, only then can it risk-free arbitrage.


Original article translated from Chinese.

Original Article: https://mp.weixin.qq.com/s/fm8XGDwvWgNtlH06tjvaJA

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