CurveZero living litepaper:
https://docs.google.com/document/d/1rrYC32w63FzzV61rJWqqYomEMgfZ3cRR1jOlJmnnxeY
CurveZero twitter account:
https://twitter.com/curve_zero
The why: A few years back a friend of ours walked into a bank, and walked out with a 18.5% fixed rate car loan. We asked him at the time why he accepted that rate. He responded that the bank said: “that was the price”, the floating rate was indeed lower but he wanted a fixed rate. Unfortunately our friend wasn't financially savvy enough to know that the right rate was probably somewhere between 8-10% at the time. We come from a country where the banks are not always honest actors. This protocol exists to help solve that problem.
What success looks like: If successful, we would have created a fair and transparent USD fixed rate loan market. Where anyone, regardless if you live in the US or Nigeria, whether you black or white, will be able to access fairly priced USD loans provided they have good quality collateral. This is a loan market that would be free from human pricing bias and one where the growing value of trapped crypto collateral could be unlocked. Our goal is to reach a cumulative 1 Trillion USD in loans by 2030.
Abstract: This litepaper introduces a framework for bootstrapping the USD yield curve all on-chain, in a sustainable way. We use a fixed rate loan product as the first use case of the curve, the revenue from which then funds continual development and maintainance of the curve. The protocol (curve & loan) will live on layer 2 ethereum, either on starknet or zksync. The traditional bootstrap process for curve building is used, firstly we determine the set of most liquid crypto instruments from which rates can be extracted. Next these are then imported on-chain via data oracles, from this we then bootstrap the curve. Effectively once this curve is known, the loan protocol can price fixed rate loans at any term, so a user can lock into a fixed rate loan for x days in a trustless and transparent manner (6 months max term initially).
Protocol Architecture:
Progress:
Protocol (cairo) - 65%
Services (python) - 25%
Website design - 50%
Website integration - 10%
Community building - 10%
Audits - 0%
Key Dates:
04 Feb 2022 - First contract deployed on StarkNet Goerli test net
16 Feb 2022 - First loan created and accrued compound interest correctly valued
05 Mar 2022 - Lend borrow functional, including token transfers, PP price validation and dummy price oracles
12 Mar 2022 - First loan liquidation and insurance fund payout working as expected
18 Mar 2022 - Crypto native USD yield curve stripped from Defi/Futures/Treasury Bonds
28 Mar 2022 - First iteration of website design done
14 Apr 2022 - CurveZero wins best L2 Dapp in the StarkNet x Encode hackathon
16 May 2022 - Solved for continuous accrual of interest to LPs
23 May 2022 - Architecture changed, curve stripping now happens natively on-chain
Our Mantras:
Make products that people love
Keep the protocol secure
Work together as a community
Our Future Roadmap:
Integrate native functionality into wallets like argent and braavos
Integrate into L2 money market protocol to provide yields on collateral
Expand from single collateral to multi collateral
Implement KYC, AML and OFAC restrictions