Mentors:

Jack Melnick

DeFi Lead, Polygon Labs
DeFi

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.

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FAQs

For anyone not familiar, What is Polygon zkEVM?
What are the main features of Polygon zkEVM?
What is so unique about zkEVMs?
Why is EVM Equivalence needed?
What is the difference betweeen EVM compatbility and EVM equivalence?
What EVM opcodes are different on Polygon zkEVM?
Which opcodes are missing in the current zkEVM version?
What precompiled smart contract functions does Polygon zkEVM support?
Can this layer 2 zkEVM work with other chains?
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