Zethyr Finance - Crypto Academy / S4W8 - Homework Post for @fredquantum

in hive-108451 •  3 months ago 

steemit crypto academy - Zethyr Finance.jpg

Question 1 - What is Zethyr Finance?

Zethyr Finance is one of the top projects that operates on the Tron blockchain network. When it comes to lending and borrowing of Tron assets on the Tron network in the world of decentralized finance at the best rates, Zethyr Finance is regarded as one of the big players in the Tron ecosystem. Zethyr Finance is a decentralized application that is built on Tron blockchain that comes with amazing and unique features and capabilities.

On Zethyr Finance, Tron users can lend and borrow Tron assets at the best rates for profitability. It is mainly a DeFi protocol that gives users who hold tokens in the Tron network to lend and borrow assets. Users who deposit tokens in the Zethyr Finance gets rewarded in the Zethyr. Loan requests that is made on Zethyr Finance is backed up by the collateral deposits made the user. On the Zethyr Finance ecosystem, users can borrow TRX and other Tron assets. Tron users collateralize their Tron assets in order to borrow TRX and other Tron assets, this is known as Borrow on Zethyr Finance. Also, users can lend TRX and Tron assets. Users lend their TRX and Tron assets to earn more on Zethyr. This lending can also be used as collateral in order borrow TRX and Tron assets. This is known as supply on Zethyr Finance.

Main Benefits of Zethyr Finance

  • Trustless - On Zethyr Finance, there are no risk of counterparty and users have full control of their assets.

  • Accessible - On Zethyr Finance, there are no signups required. Instead, the credit line is instant and the process is automated.

  • Zero Downtime - Zethyr Finance runs on the Tron blockchain network which means that it is fully decentralized and inherits the decentralized nature of the Tron network and also the interface is decentralized.

  • Transparent - On Zethyr Finance, transactions and activities are transparent which means that users can monitor their funds and all the transations and activities on the Zethyr Finance protocol on Tron.

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Screenshot from zethyr finance


Question 2 - What are the features of Zethyr Finance? Discuss them. What's your understanding about DEX Aggregator?

Features of Zethyr Finance platform

The Zethyr Finance platform comes with some very useful features that has its functionalities and capabilities. It has its main features such as Markets, V1, Ztoken, Swap, Stable and Blog.

Markets

The markets feature is basically the section that shows all the available markets on Zethyr Finance and their respective APYs. The markets section shows the total supply and total borrowing, and also the supply APY and borrow APY, as well as the flash liquidity amount of all the markets on Zethyr Finance.

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Screenshot from zethyr finance

V1

Since Zethyr Finance operates on V2, the V1 feature is basically contains the old V1 features including the Zethyr Finance loan Calculator, V1 markets and other important updates on the V1 interface.

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Screenshot from zethyr finance

ZToken

The ZToken is basically the Zethyr Finance native token which is used in the Zethyr Finance ecosystem. Users receive rewards for lending on Zethyr Finance. These rewards are paid using ZTokens from the transaction fees to those who provide liquidity. Also the ZTokens is used for interest for interacting with the Zethyr Finance protocol. Users who supply assets on Zethyr Finance receives ZTokens as reward. The main features of ZToken are; it represents the user balances in the protocol. It is a TRC-20 token and confirms with the TRC-20 standards. It is useful for collaterals.

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Screenshot from zethyr finance

Swap

The swap feature on Zethyr Finance is basically the DEX aggregator section where users can connect their tron wallet and swap between TRX or other Tron assets to other Tron assets. For instance, users can swap between TRX and USDT quickly. Users can also swap between Tron assets such as WIN, BTT to TRX and other assets. The swap feature shows the swap price, estimated fee, slippage, tron network fee and platform fee.

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Screenshot from zethyr finance

Stable

The stable feature is basically the Chain-swap or the swapusdt section where users can swap between the USDT stable coin securely and instantly with low transaction fees. Users can make use of the chain-swap feature to swap from the tron based USDT-TRC-20 to the ethereum based USDT-ERC-20. When swapping from USDT-TRC-20 to USDT-ERC-20 on the stable section, there is a 10 USDT transaction fee. This means that if a user decides to swap 200 USDT-TRC-20 to USDT-ERC-20, the user will receive 190 USDT-ERC-20 tokens.

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Screenshot from zethyr finance

Lend and Borrow

The lend and borrow feature on Zethyr Finance is basically where users can borrow TRX and other Tron assets. Tron users collateralize their Tron assets in order to borrow TRX and other Tron assets, this is known as Borrow on Zethyr Finance. Also, users can lend TRX and Tron assets. Users lend their TRX and Tron assets to earn more on Zethyr. This lending can also be used as collateral in order borrow TRX and Tron assets. This is known as supply on Zethyr Finance. Users who provide liquidity on Zethyr Finance earn interest as reward.

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Screenshot from zethyr finance

Blog

This is basically the section where all Zethyr finance related blog posts can be found. Users can visit the blog section to read the blog posts, News, stories, and any announcements from Zethyr finance.

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Screenshot from zethyr Blog


Question 3 - Explore the Zethyr Finance Markets and show your observations in terms of profitability of Supply and Borrow (Hint: Best Supply/Borrow APY)

To explore the Zethyr Finance Market section, I will be visiting the Zethyr Finance protocol market section at https://zethyr.finance/#/markets or visiting the Zethyr Finance protocol homepage and clicking the markets tab.

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Looking at the markets section of the Zethyr Finance protocol, we can see that the total supply value is $633,365.50 with a positive increase of +1.36%. Also, the total borrowing value is $23,884.88 with a positive increase of +1.41%.

On the top markets, the percentage of the total supply of the available assets are as follows;

  • TRX – 85.31%
  • USDT – 1.25%
  • WIN – 2.30%
  • BTT – 11.14%

The percentage of the total borrowing of the available assets are as follows;

  • TRX – 99.71%
  • USDT – 0.17%
  • WIN – 0.00%
  • BTT – 0.12%

From my observation, we can see that there are more percentages in the supply side than in the borrowing side when it comes to the available assets in the markets. This means that there are more users supplying more assets on Zethyr Finance than borrowing asset. TRX has the highest supply percentage with 85.31%, followed by BTT with 11.14%, while on the borrowing side, TRX has almost all the percentages of borrowing with 99.71%.

Looking at the supply table, we can see that the assets with the most supply has the lowest APY, and the lower the supply, the higher the APY. This is due to the fact that as more people take part in the supply pool, the APY reduces. The same for borrowing. The asset with the highest borrowing the lower the APY and the asset with the lowest borrowing, the higher the APY.

On the top markets, the supply APY and the total supply of the available assets are as follows;

TRX

Total supply – $540,324.99
APY – 3.92%

USDT

Total supply – $7,932.48
APY - 21.49%

WIN

Total supply – $14,537.63
APY – 5.22%

BTT

Total supply – $70,570.38
APY – 4.80%

The borrowing APY and the total supply of the available assets on the markets are as follows;

TRX

Total supply – $23,816.27
APY – 10.80%

USDT

Total supply – $39.99
APY – 8.00%

WIN

Total supply – None
APY – 23.00%

BTT

Total supply – $28.60
APY – 20.00%

From the data on supply and borrow on Zethyr Finance markets, we can see that there is a relationship between the supply and borrowing and the APY rate. It is clear that the asset with the best supply APY is USDT of 21.49%. Also, USDT has the best borrowing APY of 8.00%.


Question 4 - Show the steps involved in connecting the TronLink Wallet to Zethyr Finance

For this demonstration of how to connect tronlink wallet to Zethyr Finance, I will be making use of a desktop device and connecting my tronlink wallet to Zethyr Finance. To do this, I will first visit the Zethyr Finance protocol at https://zethyr.finance/#/

Next, click on swap to launch the Zethyr Finance swap protocol

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On the Zethyr Finance protocol, I clicked on “connect”. This will initiate the Tronlink wallet extension on my browser. The Tronlink wallet will pop up to complete the connection.

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Next, on the tronlink wallet click on connect to complete the connection.

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After that, Zethyr Finance protocol will be connected to the tronlink wallet.

Zethyr Finance is now connected to my tronlink wallet.

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To swap, select the assets you want to swap and input the amount of tokens and receive the equivalent. To swap from TRX to USDT, I inputted 20 TRX and will receive 2.022236 USDT. The price and estimated fee and transaction fees are displayed. Click on swap now to proceed with the swap transaction.

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Question 5 - Give a detailed understanding of ztoken and research a token of another project that serves the same purpose as it

ZToken is basically the native token of the Zethyr Finance protocol and DeFi platform that runs on the Tron blockchain network. Ztokens are TRC-20 standard tokens that is native to the Zethyr Finance protocol. On Zethyr the value of the ZTokens are pegged 1:1 to the value of the underlying assets or tokens that are deposited into Zethyr finance. This means that if the value of the ZToken will remain the same and tied to the underlying token.

On Zethyr Finance, the ZTokens are minted upon the deposits and when they are redeemed, they are burned. Each time the underlying tokens generate interests yields in the Zethyr platform, the equivalent amounts will be created in zTokens and sent to user. These ZTokens can be stored freely in any tron based wallet and transferred. Users can enjoy the benefits of the underlying tokens on the Zethyr protocol without withdrawing the tokens from Zethyr protocol. When a user deposits USDT the user will receive the same equivalent in zUSDT Upon depositing at Zethyr USDT lending pool. Same for TRX, WIN, BTT, the user will receive zTRX, zWIN, zBTT at the corresponding lending pool.

JTokens

JTokens are another type of tokens that are very similar to the ZTokens. Like the ZTokens, the JTokens is also a tron based token that is native to the JustLend protocol. The JustLend protocol is a lending protocol that operates on the Tron blockchain network. It is a peer-to-peer lending platform that allows users to deposit their assets, lend, borrow and earn interest reward in return based on the APY. This accrued interest is rewarded in JTokens that is pegged to the underlying asset that was deposited.

On the JustLend protocol, the money market fund pools interest rates are basically determined by the algorithm which is based on the supply and demand of tron assets. The two main actions on Justlend are lending or supplying and borrowing. Both lending/supplying and borrowing allows users to interact with the Justlend protocol and earn interest based on the APY interest rates or pay based on the APY interest rate. The JTokens are the TRC-20 standard tokens that are supplied to the market. Users who own the JTokens can enjoy the benefits of the underlying asset. The JustLend protocol has shown to have more markets compared to Zethyr Finance.

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Screenshot from JustLend


Question 6 - Perform a real Supply transaction on Zethyr Finance using a preferable market. Show it step by step (Screenshots required). Show the fees incurred.

To carry out a supply transaction on Zethyr Finance, I will first visit the Zethyr Finance protocol at https://zethyr.finance/#/

Click on my portfolio to enter the portfolio section

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On the supply markets section, select the asset type you want to perform the supply transaction. For me, I chose the first asset which is TRX.

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Click on TRX. Next is to click on enable to enable the asset first.

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Next, if there are no available energy, it will prompt that an estimated amount of 20 TRX will be burned for the transaction fee on the tron network.

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After that, confirm the smart contract transaction by signing it on the tronlink wallet.

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Once the smart contract transaction is signed, the asset will be enabled.

To supply the asset, click on the enabled asset and input the amount you want to supply. For me, I supplied 20 TRX.

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After that, click on supply to submit the supply transaction.

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A fee of 20 TRX will be used as transaction fee

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Next, execute the smart contract transaction by signing it on the tronlink wallet.

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Done, the TRX has been supplied. The net APY and the supply balance will be displayed on the my portfolio section on Zethyr Finance.

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Question 7 - Collateralize your asset to Borrow on Zethyr Finance, repay the borrowed asset and withdraw your supply. Show the steps involved and your observations (like the fees incurred).

In order to Collateralize any asset on Zethyr to Borrow on the Zethyr Finance protocol, I will have to first go back to the my portfolio section on Zethyr Finance.

On the my portfolio section on Zethyr Finance, on the supply side of the enabled asset, click on the toggle switch button to set as collateral.

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Enable as Collateral and click on use TRX as collateral to proceed with the transaction. The borrow limit will be displayed.

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20 TRX will be used as transaction fee

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Sign the transaction on tronlink to execute the transaction.
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Done, the asset has been collateralized on the Zethyr Finance protocol.

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To borrow asset, on the borrow markets section, click on the asset to borrow. For this, I selected USDT

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Next, I inputted the amount of USDT I want to borrow and clicked on borrow

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20 TRX was used and burned as the transaction fees

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Next is to Sign the transaction on tronlink wallet to execute the transaction on the tron blockchain

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To withdraw the supplied asset, click on the supplied asset in the supply section

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Click on the withdraw tab and input the amount to withdraw

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20 TRX was used and burned as the transaction fees

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Sign the transaction on tronlink wallet to execute the smart contract transaction.

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Done, theasset will be withdrawn from the protocol.


Question 8 - What do you think of Zethyr Finance? Is it great or not? State your reasons.

In my opinion, Zethyr Finance is an amazing project and one of the top projects that runs on the tron ecosystem. Aside from the possibility of earning passive income from supplying assets on the protocol, I really like the ease of use of the Zethyr Finance platform. The interface is really simplified to make it easy to lend and borrow assets as well as swap between different tron based tokens.

On Zethyr Finance, the three main features that I really like and use the most are the swap feature for swapping between different tron based tokens such as TRX to USDT, TRX to WIN, TRX to BTT securely, faster and low fees. Lending and borrowing feature for supplying assets to the protocol and earning rewards based on the APY. Also the stable feature for securely exchanging from USDT-TRC-20 to USDT-ERC-20. In my opinion. Zethyr Finance is the way forward for the tron ecosystem. With its good interest rates, there is no doubt that more and more users will be making use of the platform to supply and borrow asset on the tron network.

@fredquantum

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