OVERVIEW
Decentralized lending platforms have seen a tremendous shift in the global market in recent years. The capacity to lend and borrow bitcoin assets has increased since this idea became available on the worldwide cryptocurrency market. Knowing this, more DeFi project creators are expected to begin developing various dapps for the loan and borrowing business based on the Defi protocol.
What is Decentralised Finance?
Decentralized finance is a short form for DeFi. DeFi is a new financial system based on distributed ledgers that are similar to those used by cryptocurrencies. It eliminates costs charged by banks and other financial institutions.
The whole DeFi network is based on a decentralized network, and when a DeFi application is implemented, an Individual or agency is not allowed to interfere with user transactions. Despite this, the DeFi network has suffered numerous obstacles in the past. Though in the Lending and Borrowing industry, this new approach will help restrict some of those issues, and we will have a reformed system.
What is 0VIX Protocol?
With the issue that has been affecting the DeFi lending and borrowing industry, a group of unique Personnels introduced a platform known as 0VIX, a Polygon-based Decentralized Finance (DeFi) liquidity market system. The 0VIX protocol allows users to lend, borrow, and earn interest on their digital assets with ease. 0VIX aims to allow access to decentralized financial products by giving people permissionless lending and borrowing, with a focus on approachability, ease of usage, and cheap fees.
0VIX is a permissionless and open liquidity market, that is anyone with a wallet can access it and third-party protocols are free to build with it to produce additional yields. For a wide range of cryptocurrency assets, 0VIX offers several lending and borrowing markets. Users earn a variable interest rate on their invested assets as well as the 0VIX token by depositing assets into the platform. Deposited assets can also be used as collateral to allow the user to obtain further assets. Depositing funds gain profit, which compensates for the cumulative interest rates from borrowing.
The 0VIX Protocol aid in promoting percentage leap model structures as the industry standard, which will never adjust to any unforeseen changes in real-time market conditions, such as high market volatility. The team realized that if rival protocols offer a greater APY for asset provisioning than the 0VIX protocol for lending, this will result in a liquidity drain, which will damage the protocols. Nobody is prohibited from performing any of the activities offered on the 0VIX protocol dapp as long as they meet the basic requirements for lending and borrowing on the 0VIX protocol.
Steps in the evolution of money-market protocols
To use the 0VIX Protocol, users must first ensure that the various steps must be followed in the money-market protocol. They are;
Supply Asset:
Users have to do the following to supply tokens to the platform;
1. Navigate to the supply markets tab on the Markets page.
2. Choose your asset in order to supply an asset, then click on it.
3. After the first approval of the asset, the user can select the amount of token to be given or click Max to deposit the entire balance of that token in the wallet.
4. To begin the transaction and deposit the tokens, press the Supply button.
Note: Any amount can be deposited by users. A user receives oToken in exchange for giving an asset to 0VIX. The ERC20 standard defines oTokens as interest-bearing, tokenized representations of user deposits.
Borrow Asset:
Users can borrow tokens from 0VIX based on the worth of assets they have already provided. When a user takes out a loan, interest is calculated per second on the borrowed assets. In order to borrow your assets against them, you can activate your provided assets as collateral for the protocol. The protocol determines the amount of money that can be borrowed against an asset. A borrowing limit is created to allow users to repay their debts on time. The following steps must be followed in order to borrow assets;
- As shown in the diagram below, scroll to the borrow market tab on the market page.
- By clicking on it, you can choose the asset you want to borrow from.
- Enter the desired loan amount in the first dialogue box and click borrow.
- The borrow is successful after the transaction is confirmed, and interest begins to accumulate.
Claim 0VIX
After a user has been able to borrow an asset, the next stage is “claim 0VIX”. In this process, Every communication with the protocol qualifies you to receive 0VIX to earn a high annual percentage yield when supplied liquidity to various assets. A diagram is shown below;
Lock 0VIX
In this stage, there are two options, locking your 0VIX for a predetermined or specific time period. As a result, you will be rewarded with a ve0VIX token proportional to the length of time you have locked. 0VIX is the protocol’s native utility.
Market Reward Vote
This is the last step of money-market protocols. In this process, you can vote with your ve0VIX every 10 days and rewards should be allocated across markets to all users to win incredible prizes. A diagram is shown below;
Finally, the 0VIX protocol is a digital economy ecosystem dominated by a group of specialists with experience in all aspects of the digital economy. They understand what it takes to keep a platform active, expand, and develop to the point where it can provide the best service. The 0VIX protocol will also give a comprehensive remedy to all of the problems and obstacles that the lending and borrowing business faces. Because of its many functionalities, the 0VIX Protocol can be utilized in a variety of ways to assist humanity to overcome financial dangers in the lending and borrowing business. I know with 0VIX, there will be more to come in the future.
