BI 004 P2P veZERO Lending Market
Problem Statement
The Polygon Web3 Ecosystem lacks a decentralized P2P veZERO Lending Market, where veNFT holders can leverage their assets by allowing others to access their future bribes and fees, while borrowers gain access to these incentives by paying upfront $CASH. This innovative platform aims to address the need for a mechanism to speculate on and trade veZERO earnings within the Polygon network.
Potential solution
- We propose the creation of a decentralized P2P veZERO Lending Market on the Polygon network. This platform will enable veNFT holders to lock their assets for a specific number of epochs, allowing borrowers to pay upfront $CASH in exchange for access to future bribes and fees generated by the veZERO protocol.
- A smart contract will manage the process, optimizing voting for maximum ROI, collecting fees, and handling Anti-Dilution Rebase. All earnings will be accumulated in a reward pool for borrowers to claim weekly.
Challenges you may have to overcome
- Ensuring The security and trustworthiness of The smart contract handling veZERO assets.
- Designing a user-friendly interface that simplifies The Lending and borrowing process.
- Establishing mechanisms for transparent voting optimization and fee collection.
- Developing a robust Anti-Dilution Rebase system.
- handling potential disputes between veNFT holders and borrowers.
Business model
- Charging a percentage fee on the upfront $CASH paid by borrowers.
- Taking a percentage of the fees and bribes earned within the veZERO protocol.
- Potentially offering premium services or features for a subscription fee.
- Exploring partnerships with other DeFi projects to expand the ecosystem.
Market Opportunity
The total addressable market for the P2P veZERO Lending Market is vast, encompassing the entire Polygon Web3 Ecosystem. It includes veNFT holders seeking to monetize their assets, borrowers interested in accessing veZERO incentives, and speculators looking to profit from bribes and fees. As the DeFi space on Polygon continues to grow, the TAM is expected to expand accordingly.
This RFS idea presents an exciting opportunity to create a decentralized lending market within the Polygon ecosystem, allowing users to speculate on and trade veZERO earnings. It addresses the needs of veNFT holders, borrowers, and speculators, contributing to the development and expansion of the Polygon Web3 Ecosystem.
FAQs
Polygon zkEVM is the leading zero knowledge scaling solution that’s equivalent with the Ethereum Virtual Machine, this means that most of the existing smart contracts, developer tools, and wallets work seamlessly.
Polygon zkEVM harnesses the power of ZK proofs to reduce transaction cost and increase throughput, all while inheriting the security of Ethereum L1.
1- Ethereum-equivalence: Most Ethereum smart contracts, wallets, tools, etc. work on Polygon zkEVM seamlessly.
2- Inherits Ethereum security
3- Lower cost compared to L1 and better finality than other L2 solutions like Optimistic Rollups
4- ZKP-powered scalability, and aiming at similar throughput to PoS
Many people in crypto believed that a zkEVM was years away, and might never be practical or competitive with other ZK L2s. This was framed as an unavoidable tradeoff: we could have either full EVM equivalence or high performance, but not both. However, with the proving system breakthroughs pioneered by Polygon Labs, we belieive we can achieve full EVM equivalence while offering better performance (higher throughput, lower latency, and lower cost) than alt-L1s, optimistic rollups and other ZK rollups.
EVM-equivalent: Ethereum isn’t just a blockchain. It’s a rich ecosystem of smart contracts, developer tools, infrastructure, and wallets. It’s a vibrant community of developers, auditors, and users. The best way to scale Ethereum is to strive to maintain equivalence with this ecosystem, and the Polygon zkEVM will give users and developers an almost identical experience to Ethereum L1 -- just with a significant scalability improvement.
The ultimate goal is not compatibility. The ultimate goal is equivalence. Solutions that are compatible enable most of existing apps to work, but sometimes with code changes. Additionally, compatibility may lead to the breaking of developer tooling. Polygon zkEVM strives for EVM Equivalence, because it means that most applications, tools and infrastructure built on Ethereum can immediately port over to Polygon zkEVM with limited to no changes needed. Things are designed to work 100% on day one. This is important, because ideally:
1. Development teams don't have to make changes to their code, which could introduce a security vulnerability
2. Since no code changes are needed, you dont need additional audits, which saves teams money
3. The experience for a developer is much better. Since he/she is not rewriting the application, valuable time is saved.
4. The solution ultimately benefits from the security and decentralization of Ethereum, since transactions are still finalising on Ethereum
5. Allows Polygon zkEVM to benefit from the already vibrant and active Ethereum community
6. Allows for significant and quick dApp adoption, since apps built on Ethereum today are designed to be compatible.
SELFDESTRUCT: removed by SENDALL
EXTCODEHASH: returns hash contract bytecode from Polygon zkEVM state tree (do not check if the account is empty)
DIFFICULTY: returns 0
BLOCKCHASH: returns all previous block hashes (not just the last 256 blocks)
BLOCKCHASH is the state root at the end of a processable transaction and it is stored on the system smart contract
NUMBER: number of processable transactions
zkEVM supports all opcodes but SHA256, BLAKE and PAIRINGS.
ecRecover and identity are presently supported. Others return a revert.
At the moment, the answer is No. Aspirationally, the goal in the future is to build one of many chains that allow for users' assets to move from layer 2 (L2) to layer 2. With that being said, users will not be able to utilize this functionality at launch, but L2 to L2 movement is something road mapped for the future.