Enthusiasm for innovation within the DeFi community is incredible. We have been humbled by the support, interest, critique, and — most importantly — feedback for Zero Collateral. Following the project release, our team went back to the drawing board to incorporate your feedback.
Zero Collateral Protocol Upgrades
Gone with 20% → In with 12%
Loan initiations now begin at a 12% interest rate, with the ability to decrease rates down to 4%. No more 20% borrow rates!
Pay ahead to Lower Rates
Introducing Non-Redeemable Collateral — a new form of collateral which directly lowers interest rates. Deposits are non-redeemable and, thus, cannot be withdrawn.
Decreasing Interest Rates
As interest is paid, loan rates decrease. Here’s the formula:
Interest Rate = 12% — (8% * ((Non-Redeemable Collateral + Interest Paid) / Borrow Amount) )
Borrows may now be requested for any size available within the supply pool, provided collateral requirements are met.
Further Research: DeFi + CeFi
Progress in DeFi + CeFi research has enabled us to visualize how the two ecosystems may interoperate through Stratosphere. We use the example of mortgages for rental property as the use case involves many data points with real-time streaming.
In the DeFi mortgage model, Ethereum is at the core as the financial infrastructure layer. High-value, small-sized data and computation will continue to reside on Ethereum. Meanwhile, low-value, large-sized data and computation will be distributed throughout the Stratosphere node network.
Interoperability amongst Stratosphere oracles will enable Ethereum-based financial products to adjust, in real-time, to ongoing events.
Thank You DeFi 💎
Thank you to everyone who has supported the project in recent weeks. Shoutout to DeFi Rate, Camila Russo, Alex Masmej, Evan Van Ness for writing about Zero Collateral. Furthermore, shoutout to Clayton and Tom at DeFi Nation for a great interview on Zero Collateral and the Stratosphere Network.
DeFi Rate — Introducing Zero Collateral Loans
The Defiant —Green Shoots in Zero Collateral Loans
DeFi Prime — Crypto Loans Without Collateral
Week In Ethereum News — Undercollateralized Loans on Ropsten
Join the Zero Collateral Journey
We are an open ecosystem of developers, marketers, and DeFi enthusiasts who are here to build a more accessible and transparent financial world. If you support the mission of Zero Collateral, please join us in our journey!
🐦 Follow Zero Collateral on Twitter
🎮 Try out the Zero Collateral on Ropsten
💵 Donate to fund our smart contract audit
⚔ Contribute to the open-source Zero Collateral codebase on GitHub
😎 Join the team! Email email@example.com. Side hustlers are welcome.