Zero Collateral Protocol Upgrades 💎
Enthusiasm for innovation within the DeFi community is incredible. We have been humbled by the support, interest, critique, and — most importantly — feedback for Zero Collateral. Following the project release, our team went back to the drawing board to incorporate your feedback.
Gone with 20% → 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 — 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 Deposits are non-redeemable and, thus, cannot be withdrawn.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. Here’s the formula:
Interest Rate = 12% — (8% * ((Non-Redeemable Collateral + Interest Paid) / Borrow Amount) )
Borrows may now be requested for any size available within the supply pool, provided collateral requirements are met.
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.
Published at Mon, 13 Jan 2020 16:28:21 +0000