WHAT DO YOU NEED TO KNOW ABOUT THE 0VIX PROTOCOL?
THE NEW DEFI LENDING PROTOCOL ON THE POLYGON NETWORK.
At first, there was only trading of crypto assets on the blockchain, This could be through centralized or decentralized exchanges, but over time and along with the development of blockchain technology, new ideas emerged in the world of crypto, namely decentralized finance is the embodiment of a Web3-based banking system, where users can put their crypto assets as collateral and borrow against them.
What is the 0vix protocol?
0vix protocol is a defi lending 2.0 protocol built on the polygon network, it is a permissionless lending protocol in which users only need a wallet address to join this platform and engage in activities of lending and borrowing assets directly from the liquidity market.
How the 0VIX Protocol works:
a. Supply assets.
Users can supply assets into the protocol to be used as collateral, when users want to borrow crypto assets directly in the protocol. Users can immediately withdraw the assets that are supplied at any time if they do not have an outstanding loan or have paid back their loan.
b. Borrow Assets.
Users can borrow cryptocurrencies directly in market liquidity using the supplied asset as collateral where the value of the loan against the collateral varies depending on the asset supplied and borrowed. Users can immediately return borrowed crypto assets directly through the protocol.
c. Staking platform
0vix provides a staking platform for governance tokens created by 0vix, that is $VIX token, along with a locking period decided by the user that will generate different rewards depending on the duration of the staking token.
d. Vote Market Rewards.
Users can vote on the percentage of rewards that are to be given to different liquidity pools based on the voting power possessed by the user, namely the number of VIX tokens owned. This allows users to incentivize the supplying and borrowing of particular assets.
0vix applies ve tokenomics in the protocol, which is will give users voting rights, these rights allow the users of the protocol to determine which markets will receive the best rates and returns.
4. Currently only blue-chip assets are supported on the 0vix protocol they are $MATIC $USDC $WBTC $WETH $DAI $USDT, users can use these assets to supply and borrow assets against the supplied in the protocol.
5. Health factor
The health factor is a numeric representation of the degree of safety of the user’s assets deposited as collateral. A higher value indicates that the user funds have a greater safety level. On 0vix protocol users have to keep their health factor above 1 to avoid liquidation risks.
6. Loan liquidation
Liquidation occurs when the borrower’s health factor falls below 1 because the value of the collateral supplied does not cover the amount of the asset being borrowed. In this case, the borrower must maintain the health factor above 1 so that the assets supplied are not liquidated
O-Tokens are ERC-20 receipt tokens that are minted and burnt upon supply and withdrawal of assets to an 0vix market. When a user supplies an asset to a lending pool on 0vix, the corresponding oToken will be issued to track the funds that they lent out and also the interest they’ve earned, for example, users who supply WETH tokens will get OWETH, if supply USDC will receive OUSDC.
0VIX is the first veTokenomics lending market with dynamic interest rates on Polygon. It’s a DeFi money market where assets can be used as collateral to borrow other assets.
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Official link of 0VIX Protocol: