🚨ZenChain Assessment

Is ZenChain a PvP protocol like GMX? Why not?

• 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.

What networks are supported?

• 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

What are the trading fees 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.

How do Traders earn yield on 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.

How is the value of collateral calculated?

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

Can I use isolated margin instead of cross margin?

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

Can I withdraw my collateral if I have trading losses?

• 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.

When will a Trader be liquidated?

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