🚨ZenChain Assessment

When users enter a trade (e.g. long BTC), the BTC is actually purchased on the liquid secondary market via decentralized exchanges. This makes ZenChain a non-PvP protocol, and Lenders (liquidity providers) on ZenChain are not a trade counterparty to Traders.
In contrast, liquidity providers on PvP protocols absorb capital losses in the event that traders are net profitable. The PvP model effectively pits liquidity providers against traders in a zero-sum game within the protocol.
A non-PvP design removes a key conflict of interest between Lenders and Traders on ZenChain , because it allows for win-win outcomes to take place. Traders can be net profitable on their PnL, with Lenders earning their deserved yield at the same time.

ZenChain is deploying on Ethereum as the first supported network.
After Ethereum, ZenChain aim to support EVM-compatible networks such as BNB Chain and Polygon, and also new upcoming networks such as Scroll , Linea and Pulse-Chain
Each network deployment is native within its own chain, and is expected to have its own utility token within the respective network.

For Traders

Traders are charged a swap fee of 0.1% on executed trades and a 7% performance fee on reward tokens generated by the trading collateral.

Traders are required to deposit collateral before trading.
Collateral deposited is redeployed to earn reward tokens in other DeFi protocols such as Convex, Aave or Stargate.
Traders can claim their reward tokens earned anytime within the ZenChain platform.

Chain-link USD-denominated price oracles are used in calculating collateral values.

Users can use multiple wallets to "isolate" the collateral, creating the same effect as isolated margin.

Traders with a net negative profit and loss (PNL) account will be capped on collateral withdrawals.
Traders can withdraw their collateral in full after repaying debt to the lending pools.

Traders' trade portfolio and collateral are fully liquidated if trading losses exceed the liquidation threshold.

Last updated 1 year ago