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Welcome to Zero DAO
Zero DAO protocol is a p2p signaling service and suite of blockchain software which facilitates quick transfers of value across blockchains which pay for transaction fees out of the transferred value, and can run arbitrary code upon the transfer. The protocol contains facilities for fast execution by means of a short term lending system where the value of incoming assets are made available to the module handling them, and the loan is repaid when the mediator (RenVM) releases it directly back to the system.
The major players in a given transfer are:
  • End-user: The party wishing to move assets over through a zero module
  • Underwriter: The entity holding an NFT representing ownership of locked LP token for the transferred asset as it exists in the zero vault, authorized to write loans using his locked assets as collateral
  • Underwriter Lock: The non-custodial smart contract that will hold the balance sheet of (lockedLPTokenAmount, cumulativeLoanedOut, cumulativeRepaid, collateralizationRequirementPercentage), if the value of the locked LP token for the underlying asset loaned out drops below the requirement, the entire underwriter can be liquidated to recoup losses
  • Keepers: Any delegates of the underwriter allowed to send the transaction which executes the loan, or the transaction that repays it with the mediator's signature
  • Controller (forked from YFI v2 controller): Entrypoint to perform a transfer, also an ERC721 where an underwriter address is the tokenId and holding that NFT allows you to close the underwriter out and retrieve the collateral
  • Vaults (forked from YFI v2 vaults): Simple vaults where the associated strategy is expected to be able to access a portion of assets stored as ETH to repay keepers for gas, as well as a reserve of the underlying asset to quickly issue loans in an inexpensive way
  • Module: A contract which implements receiveLoan repayLoan collateralizationRequirement and any other additional functions needed for the logic to be sound and protect LPs from losses. The module system allows for developers to implement something similar to zaps, as the controller will call the callback functions listed to permit actions to take place with the transfer or repayment.
  • Zero DAO: The governance entity authorized to add new modules to the protocol, and perform any administrative functions inherited by the YFI model
Last modified 4mo ago
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