PRODUCT NEWSLETTER

Latest Smart Contract Upgrade

A Comprehensive Guide to All Features of v1.1.0

On March 28, 2024, a significant step was taken with the upgrade of smart contracts from v1.0.3 to v1.1.0. This upgrade represents a new milestone in the innovation of Secured Finance. It includes three notable new features: the tokenization of zero-coupon bonds, support for ERC2612, and changes to the order book creation logic. Moreover, it has undergone a security audit by Quantstamp, and the report is published online. Here, we delve into these changes in detail, exploring how the evolution of smart contracts impacts our digital economy.

Tokenization of Zero-Coupon Bonds

One of the most eye-catching features is the tokenization of zero-coupon bonds, also known as Lend positions, into ERC20 standard tokens. This tokenization gives rise to ZC Tokens, which are classified into two types: Perpetual and Non-perpetual tokens. Non-perpetual tokens tokenize each Lend position settled in the order book, while Perpetual tokens are those Lend positions that are auto-rolled and tokenized. These tokens comply with the ERC20 standard, making them available for use on other DeFi platforms, including Uniswap.

Support for ERC2612

Support for ERC2612 allows for the omission of the approval step necessary for deposits and order execution. This significantly improves user convenience, speeding up transactions and enhancing efficiency.

Changes in Order Book Creation Logic

Previously, there were eight order books every three months, allowing for loans of up to two years. However, the new logic allows for freely setting the intervals between order books, enabling the creation of order books for long-term loans such as three or ten years.

Security Audit and UI Update

A security audit was conducted by Quantstamp, and its report is available here. Although the UI has not been updated yet, it is possible to perform tokenization operations directly through Etherscan. The specific steps are as follows:

Example) Tokenization Procedure on Mainnet

1. Access the LendingMarketController contract through Etherscan from here. (The contract addresses for other chains can be found here.)
2. Call getMaturities() to obtain the target maturity.
3. Call getWithdrawableZCTokenAmount() to obtain the amount that can be tokenized.
   For the _ccy parameter, enter the currency symbol in byte32 format. For example, for WBTC, it would be 0x5742544300000000000000000000000000000000000000000000000000000000.
   For the _maturity parameter, input the maturity obtained in step 2 (Set 0 for Perpetual tokens).
4. Call withdrawZCToken() to execute the tokenization with the same parameters as in step 3 and the amount obtained in step 3.
5. Call getZCtoken() and import the obtained address into a wallet such as Metamask.

The tokenized assets are compliant with ERC20, making them available for use on other DeFi platforms such as Uniswap.

Conclusion

The recent upgrade to version 1.1.0 of the smart contract platform marks a significant leap forward in the realm of digital finance. By introducing the tokenization of zero-coupon bonds, incorporating support for ERC2612, and revising the logic behind order book creation, this upgrade not only enhances the efficiency and user experience but also broadens the scope of possibilities within decentralized finance (DeFi). The successful security audit by Quantstamp further assures users of the platform’s reliability and safety, paving the way for increased adoption and innovation.
This upgrade is not merely a technical enhancement. It’s a milestone that underscores the growing maturity and potential of blockchain technology in reshaping the financial landscape.