Introducing Zeroloss DeFi

4 min readJun 26, 2023

Zeroloss is a DeFi utility platform built on the Binance Smart Chain (BSC) network that aims to solve the problem of impermanent loss. Impermanent loss occurs when you provide liquidity to a liquidity pool and the price of the assets in the pool move against you. In order to minimise impermanent loss, Zeroloss proposes to use a new algorithm called Proactive Market Making (PMM).

The PMM works by adjusting the amount of assets you provide to the liquidity pool based on the price of the assets. This ensures that you are always exposed to the same amount of risk, regardless of how the prices of the assets move.

ZLT is the native currency of Zeroloss and it aims to create, bring in and maintain the values of Zeroloss, as well as remove all roadblocks hindering liquidity pool creation for the issuance of new assets.

Here are some of the utilities Zeroloss provides:

Proactive Market Making (PMM) - this is the unique innovation that Zeroloss utilises to minimise impermanent loss.

Decentralised exchange (DEX) - on Zeroloss you can trade assets on the decentralised exchange without the need for a centralised exchange. With this feature, you have more control over your funds and your privacy is protected.

Staking platform - on Zeroloss, you can stake your Zeroloss tokens to earn rewards. Zeroloss uses the POE Algorithm to enable you accure more interest against your staked tokens regardless of the market movement. This provides you with passive income.

Governance system - Zeroloss have a governance system that allows holders to vote on proposals.

The governance of Zeroloss is based on a decentralised autonomous organisation (DAO). The DAO is responsible for making decisions about the future of the project, such as which features to develop, how to allocate funds, and what partnerships to pursue.

The DAO is governed by ZLT holders, and holders can vote on proposals using their ZLT tokens. The more ZLT tokens a holder has, the more voting power they have. This ensures that the most important decisions are made by the people who have the most invested in the project.

The governance of Zeroloss is designed to be as decentralised as possible. This means that the project is not controlled by any one individual or group. Instead, it is controlled by the community of ZLT holders. This ensures that the project is always in the best interests of its users.

Here are some techniques Zeroloss uses to reduce impermanent loss:

Price oracles: Zeroloss uses multiple price oracles to get the most accurate price information for the assets in the pool. This helps to reduce the impact of impermanent loss caused by price volatility.

Staking rewards: Users who provide liquidity to the Zeroloss pool are rewarded with ZLT tokens. These tokens can be used to offset impermanent losses.

Dynamic fees: Zeroloss charges dynamic fees for providing liquidity to the pool. These fees are adjusted based on the amount of impermanent loss that is being incurred. This helps to ensure that users are not penalised for providing liquidity to the pool.

Zeroloss uses a constant product market maker (CPMM) algorithm to maintain the price of the assets in the pool. This algorithm ensures that the price of the assets in the pool always stays close to the ratio of their initial prices.

Zeroloss uses a rebalancing mechanism to adjust the weights of the assets in the pool as their prices change. This helps to reduce impermanent loss by ensuring that the assets in the pool are always evenly distributed.

Zeroloss uses a risk management system to monitor the amount of impermanent loss that is being incurred by users. If the amount of impermanent loss reaches a certain threshold, the protocol will automatically reduce the fees that are charged for providing liquidity to the pool.

Zeroloss Tokenomics

The Zeroloss tokenomics are designed to incentivize long-term holding and participation in the Zeroloss ecosystem.

Total Supply: 533,000,000

Zeroloss Ecosystem: 50% LP locked up

Early Access: 11.72% vested and linearly distributed

Development: 9% linearly unlocked over a period of 24months

Marketing: 10.28% linearly unlocked

Team: 8% vested and linearly unlocked to pay the working team

Treasury: 11% vested and locked up

zDAO will be minted as token to secure the Zeroloss DAO

A fixed amount of ZLT will be voted for using PMM algorithm and burnt to mint ZeroVerse, this will ensure the sustainable interoperability of Zeroloss with stable coins, BTC, ETH and BNB.

$ZLT Token

The ZLT token is a BEP-20 token on the Binance Smart Chain.

The ZLT token has a number of use cases, including:

Staking: ZLT holders can stake their tokens to earn rewards.

Liquidity mining: ZLT tokens can be used to provide liquidity to the Zeroloss DEX.

Governance: ZLT holders will have voting rights on the future of the Zeroloss ecosystem.

Payments: ZLT tokens can be used to mae payments for goods and services within the Zeroloss ecosystem.

Official supported wallet

Trust wallet
Metamask
Ledger

Conclusion

Zeroloss protocol is an innovative DeFi protocol that has the potential to reduce impermanent loss and make DeFi more accessible to a wider range of users.
For more information, join the community on telegram https://t.me/zerolossofficial
Discord discord.gg/WVt2WTrxgT