DeFi Has Spoken: Zero Collateral Protocol Upgrades ๐Ÿ’Ž

Ryan Berkun
Jan 13 ยท 3 min read
Zero Collateral V1.1 at

Enthusiasm for innovation within the DeFi community is incredible. We have been humbled by the support, interest, critique, and โ€” most importantly โ€” 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% โ†’ 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 โ€” 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 Deposits are non-redeemable and, thus, cannot be withdrawn.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. Hereโ€™s the formula:

Interest Rate = 12% โ€” (8% * ((Non-Redeemable Collateral + Interest Paid) / Borrow Amount) )

Uncapped Borrows

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 ๐Ÿ’Ž

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 โ€” Introducing Zero Collateral Loans

The Defiant โ€”Green Shoots in Zero Collateral Loans

DeFi Prime โ€” Crypto Loans Without Collateral

Week In Ethereum News โ€” Undercollateralized Loans on Ropsten

DeFi Nation โ€” DeFi Lending with No Collateral?! Stratosphereโ€™s Ryan Berkun on DeFi Nation

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!

๐Ÿฆ Follow Zero Collateral on Twitter

๐ŸŽฎ Try out the Zero Collateral on Ropsten

๐Ÿ’ต Donate to fund our smart contract audit

โš” Contribute to the open-source Zero Collateral codebase on GitHub

๐Ÿ˜Ž Join the team! Email Side hustlers are welcome.

Fabrx Blockchain

The cloud company for web3 (blockchain) technologies. Power your business with the decentralized web today.

Ryan Berkun

Written by

Founder & CEO @fabrxBlockchain. Previously founded @coin_plan. Decentralizing everything.

Fabrx Blockchain

The cloud company for web3 (blockchain) technologies. Power your business with the decentralized web today.

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