ZAR Stablecoin Experimental System
Resources
Price Feed for ZAR stablecoin value
Price Feeds for Collateral types
Architecture
If Diamond:
- Diamond
- AppStorage
- Facets
- Collateral Market Facet
- Collateral Market Factory Facet
- Liquidation Facet
- Oracle Facet
- Treasury Facet
- Staking Facet
Mechanisms
Minting ZARX
ZARX is the stablecoin in this protocol which aims to be pegged to the value of ZAR, in a 1:1 ratio.
ZARX can only be minted by users who have deposited collateral into the system, up to a specific collateral ratio which is dependent on the type of collateral used.
The protocol takes a once-off fee (which varies depending on the collateral type) when ZARX is minted.
Collateral Types
New collateral types can be added to the protocol. At the start we aim to only support WETH and USDC.
Each collateral type has it's own
- minting fee
- collateralization ratio limit
- liquidation ratio
- liquidation reward
Collateralized Debt Positions (CDPs)
A user (address) can have one CDP per collateral market.
CDPs should be easily discoverable via generous event data and versatile view functions. This is to decrease the insolvancy risk of the protocol, but surfacing profitable liquidations for liquidation bots.
Liquidity Mining
A portion of vesting TZAR tokens will be emitted over the first 2 years of the protocol's existance. Emissions will linearly decline over this period.
These rewards will flow to ZARX CDP holders (in proportion to time holding the CDP) and liquidators.
Liquidations
Liquidiations happen smoothly (inspired by Aave) and don't liquidate all capital at once.
When a liquidation is available, a user must supply the required amount of ZARX back to the protocol (to be burnt)
Protocol Fees and Revenue
The protocol earns revenue in a few different ways:
- Minting fees
- Liquidation fees
- Low-risk yield generated on underlying collateral (supplied to Aave)
All protocol revenue flows into a protocol treasury, which is directly managed by the protocol multi-sig, but ultimately governed through proposals by stTZAR holders.
A fee switch exists which can direct a portion of protocol revenue directly to the stTZAR stakers, but will be set to 0% at launch.
Staking
The native token of the protocol, TZAR, can be staked for stTZAR.
For the first 60 days after staking, stTZAR is non-transferrable and non-withdrawable for TZAR. After 60 days, stTZAR can be transferred or burnt to withdraw the underlying TZAR and any rewards earned over the staking period.
Only stTZAR holders are eligible for voting in protocol governance, which includes governance of the protocol treasury funds.
stTZAR may receive a direct share of protocol revenue, but the fee switch will be set to 0 at launch. This may be changed later in a governance vote.
To counteract the inflationary effects of the liquidity mining program, a similar emission of TZAR tokens will flow to stakers, linearly decreasing over 2 years.
Governance
Snapshot and the stTZAR balances will be used to implement governance voting for the protocol. The voted proposals will then be actioned by the multisig in the short term.
Installation
To install with Foundry:
forge install [user]/[repo]
Local development
This project uses Foundry as the development framework.
Dependencies
make update
Compilation
make build
Testing
make test