Zethyr Finance - Crypto Academy / S4W8 - Homework Post for @fredquantum
ZETHYR FINANCE
Humans exchange what they want for what they have, which is why trade is so crucial for our survival. In the past, people utilized the barter system to trade, and later on, they began trading valuable items such as gold, timber, cotton, and so on. The usage of fiat currency was developed to ease trade, and financial systems such as banks, brokers, and other financial institutions were established to enable transactions between people. Because the buyer and seller no longer have autonomy over their financial assets, there is a delay in transaction speed and high cost, a new system was introduced to improve the current situation, which is known as decentralized finance.
DEFI (Decentralize Financial Initiative) is a finance system or protocol based on Blockchain technology that allows buyers, sellers, lenders, and borrowers to deal directly without the need for a middleman or third party to facilitate the trade. DEFI is used in a variety of projects, including ethereum, Tron, pancakeswap, uniswap, and others. This article will center on Zethyr Finance, one of the DEFi Decentralized applications projects on the Tron Blockchain network.
Zethyr Finance is a decentralized financial platform that allows users to borrow and lend tron assets such as TRX, BTT, WIN, and others in exchange for yields. It is a project on the Tron Blockchain that allows users to borrow Tron assets with the expectation of being paid back at a specified amount, as well as to lend out their Tron assets for profit. Users who want to borrow money do so through smart contracts and must deposit a certain quantity of token as collateral on the platform. The credit line, which is regulated by the network, determines the maximum amount of loan a borrower can request.
FEATURES OF ZETHYR FINANCE AND DEX AGGREGATOR
The following are the characteristics of zethyr finance:
1.They have borrowing and lending capabilities.
2.Provision of a platform to support token exchange and cross-chain stable coin transactions.
3.Staked rewards
4.Governance system
1.The borrowing and lending features are the most unique feature of zethyr finance; users identified as zethyrians can borrow Tron assets like usdt, btt, win, and trx from a pool of assets available on the smart contract. If a Zethyrian wishes to borrow money, they must first put up some assets as collateral and check if the coin they desire is available. If Gboye wanted to borrow BTT, for example, he would first convert his available BTT to collateral and then check if BTT was available for borrowing. On Zethyr Finance, there is also a lending function. Zethyrians who want to invest their BTT, USDT, WIN, and TRX can easily deposit these assets into zethyr finance smart contracts to earn profits as borrowers borrow and pay back their loans.
2.Users can also exchange their token for another token on the network through Zethyr excahnge. The swap feature allows Zethyrians to convert their token to another, for as BTT to WIN or USDT to TRX. Users can also transfer stable currency such as USDT between Blockchain networks such as Tron and Ethereum. An ERC 20 usdt token can be exchanged for a TRC 20 usdt token.
- Another good feature of zethyr finance is the way rewards are shared. Each token on the network has its own self governing smart contract to hold its interest. When staking rewards are distributed, the interest is transferred into the appropriate smart contract, and the rewards are distributed to lenders on a daily basis. The amount of staking rewards that a lender earns is proportionate to the quantity of zTokens that he or she owns at the time.
4.The exchange gives its community 100 percent of the transaction fees it earns from trades conducted on its platform, giving users complete power over the exchange's governance. This isn't possible with most other DEFi protocols.
DEX aggregators draw liquidity from many DEXs in order to provide customers with higher token swap rates than they might get on an one DEX. You can use a protocol that supports DEX aggregator instead of wasting time checking trading prices on uniswap, kyper, and other platforms.
Zethyr DEX Aggregator is a fully decentralized application that combines many decentralized exchanges and swaps to provide the most competitive exchange rates. As a DeX aggregator, Zethyr Finance allows users to swap tron tokens quickly, cheaply, and at the best rate.
PROFITABILITY OF SUPPLY AND BORROW ON ZETHYR FINANCE MARKETS
As I previously stated, one of the most distinctive features of zethyr finance is the borrow and lend function. Zethyrians who lend or supply their TRX, WIN, BTT, and USDT and profit handsomely. The annual percentage yield (APY) is the percentage of investment return after compound interest has been considered. It is calculated on a regular basis and the amount is immediately added to the balance, increasing the lender's wallet balance and the borrower's interest.
On Zethyr Finance, there is no fixed APY; instead, the APY is decided by market conditions, which fluctuate depending on what is supplied and borrowed. For each token, there is a separate apy; the interest rate for those who want to borrow is determined as (rf(1 + 2 × (total demand/total supply). The abbreviation Rf stands for risk-free rate.
Lenders' returns are computed as (0 × idle tokens/total supply + rf × staked token/total supply + borrowing interest rate × total demand/total supply). TRX borrow and supply yields 10.80 and 4.5 percent respectively, whereas USDT yields 8% and 26.15 percent and WIN yields 23% and 13.50 percent and BTT yields 20% and 6.46%.
STEP BY STEP ILLUSTRATION ON HOW TO CONNECT THE TRON LINK WALLET TO ZETHYR FINANCE
This is a step-by-step explanation for connecting your tron wallet to Zethyr Finance. To complete the process, you'll need a reliable internet connection and a good phone or computer.
1.The first step is to create a Tron wallet account; you may do so by visiting this link (https://www.tronlink.org/) and downloading the version that is compatible with your device (there are IOS, Android, and Web versions). As a demonstration, I'm using the Android version. Open the tronlink app after it has been downloaded and create an account.
2.To create an account, you must first choose an account name and a password, which you will be asked to retype. The password will act as a security measure to ensure that others do not gain unauthorized access to your wallet.
The password must have at least eight characters and be alphanumeric.
3.You read the terms and conditions after setting your password and click agree if you agree with the company's terms and conditions.
4.The next step is to receive your mnemonics, which are a set of 12 or 24 phrases that act as an extra layer of security for your wallet. Write them down carefully and keep them somewhere safe. After that, you will be requested to retype the phrases, and your account will be successfully set up.
5.After you've set up your tron wallet, you'll need to link it to your zethyr finance account. Click the circled part in the image below to search for zethyr exchange.
6.Click on zenith exchange and then login with your zethyr finance login details.
7.Your tron wallet will be automatically connected to zethyr exchange, and you can begin using all of the zethyr finance features.
ZTOKEN
The value of zTokens is equal to the value of the underlying tokens placed in Zethyr. zTokens are a type of cryptocurrency that may be freely kept, traded, and transferred. When deposits are made, zTokens are created and burned when they are exchanged. Users' core tokens will accrue interest in the Zethyr network, and the corresponding amount in zTokens will be minted and sent straight to their wallets. Zethyrians can use zTokens to get all of the benefits of the underlying tokens without ever having to take them out of the Zethyr network. Ztokens can be used as collateral when a user wishes to borrow tron assets, and they also act as a representation of a user's tron asset on the network. ZUsdt, ZBTT, ZWIN, ZTRX are examples of ztokens.
JTOKEN IS A PROJECT THAT IS SIMILAR TO ZTOKEN
It is the native currency of the Justlend protocol, which provides a service that is quite comparable to the zethyr exchange. JustLend provides customers with jTokens as proof of ownership in exchange for basic assets such as SUN, TRX, and BTC. Because it's a TRC20 token, it may be transferred to others and stored into a smart contract or wallet just like any other TRC20 token.
All of JustLend's crypto assets are organized and integrated via smart contracts. Users create jTokens, which earn interest for their owners, and contribute crypto assets to the network. When users unwrap a jToken, it can be swapped back into the corresponding base asset. The jToken protocol is unique in that it allows users to interact with the JustLend protocol, and each jToken contract generates its own token market. Jtoken holders can also utilize the token contracts to mint, redeem, borrow, repay, liquidate, or transfer their jToken. Jtokens include JTRX, JSUN, JBTC, and more.
THOUGHTS ON ZETHYR FINANCE
In the Defi ecosystem, there are numerous projects that perform different or comparable services. Zethyr finance is not the only protocol on the tron network that provides loan services; justlend does as well, but I believe that zethyr finance is the better at the moment. I believe it is more efficient because of the number of nodes it operates on; the protocol operates on over 1300 nodes on the Tron Blockchain, thus there is less risk of disruption. In addition, the APY is significantly higher than other lending protocols, making it a good investment. I also like the protocol's exchange because it is transparent, allowing users to see what's going on in the network while also having governance control over the system.