About zkLend

Greythorn Asset Management
4 min readDec 7, 2022

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zkLend is a money-market protocol built on StarkNet, combining ZK-rollup scalability, superior transaction speed, and cost savings with Ethereum’s security.

At its core, zkLend offers a dual suite of permissioned compliance-focused solutions for institutional clients (“Apollo”) and a permissionless service for DeFi users (“Artemis”).

Token Name: $ZEND (TBA)

  • Accrues protocol fees
  • Provides incentives for active participants
  • A portion of borrowing fees are directed to reward borrowing/lending, LPs, community events & marketing/airdrop campaigns.
  • ~20% of the protocol’s operating profit goes toward the treasury to be used for specific asset markets,
  • 5% is for the safe module as a risk management tool to avoid any liquidity shortfalls (up to 30% of stZEND).

$stZEND

  • Staking: Receive $stZEND at a 1:1 ratio with a 10-day cooldown period for converting back
  • Current Features: Revenue Sharing, Emission Rewards, Governance Rights for both protocols on zkLend’s features
  • Future Features: Membership Perks (discounts on borrowing/lending on Artemis)

Tokenomics

Total Supply: 100,000,000 $ZEND

Current Investors

  • Delphi Digital (Lead)
  • StarkWare
  • GBV
  • CMS
  • MetaCartel Venture
  • Amber

Bullish Fundamental Factors

  1. As one of the first native money market protocols in the StarkNet ecosystem, the initial token issuance of the network (postponed since Sept.2022) as the single way for paying gas fees can potentially increase the usage of zkLend.
  2. Reduced Risks:
  • Centralisation Risk (As the L2 solution, StarkNet extends the security and decentralised characteristic of Ethereum to its protocols),
  • Oracle Risk: Partnered with Chainlink & Empiric,
  • Market Volatility Risk: Isolated pool is set,
  • Liquidity Risk: Liquidation process and safe module in use &
  • Smart Contract Risk (Artemis codes are under auditions of ADBK and Nethermind before the mainnet is available).

3. $ZEND to IEO in Q4 2022/Q1 2023.

4. Early-mover advantage

Bearish Fundamental Factors

  • Apollo is on the roadmap to be delayed for approximately half a year.
  • Apart from the ZK-rollup tech, the mechanical design of the protocol is relatively standard. (including categorising different assets into tiers, separating retailers/individual investors & institutions, etc.).
  • Aave is set to begin growing into the StarkNet ecosystem after Phase 1 was passed on December 4th. This may limit the portion of the available market for zkLend to capture.

References

  • AAVE — open source liquidity protocol (no date) An SVG of an eye. Available at: https://app.aave.com/governance/proposal/?proposalId=127 (Accessed: December 5, 2022).
  • CoinGecko. 2022. Cryptocurrency Prices, Charts, and Crypto Market Cap | CoinGecko. [online] Available at: <https://www.coingecko.com/> [Accessed 29 November 2022].
  • CoinMarketCap. 2022. Cryptocurrency Prices, Charts And Market Capitalizations | CoinMarketCap. [online] Available at: <https://coinmarketcap.com/> [Accessed 29 November 2022].
  • DefiLlama. 2022. DefiLlama. [online] Available at: <https://defillama.com/> [Accessed 29 November 2022].
  • zkLend. Available at: https://zklend.com/# (Accessed: December 2, 2022).

Important notice and disclaimer

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Greythorn Asset Management

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