OVIX – Revolutionize Money Market Protocol with EPNS

The Decentralized Finance (DeFi) platform has seen a significant flow of capital and unmatched popularity owing to its alternate financial system created to include everyone from anywhere in the world.

The era of DeFi 1.0 was created with the emergence of Uniswap and Aave. The DeFi ecosystem was something the world had never seen or ever imagined. The DeFi 1.0 provided financial services and aided in creating life-changing wealth through the alternate financial system created by it which was earlier not accessible.

With the decentralized automated market makers (AMMs) introduced by decentralized exchanges like Uniswap and Bancor and decentralized lending and borrowing provided by Aave and Compound to access permissionless operating capital and yield aggregators like Yearn, the DeFi 1.0 was birthed.

Due to DeFi, a global financial marketplace was created which offered innumerable financial instruments available to anyone from anywhere without the pre-requisite of providing documentation or KYC.

But DeFi 1.0 faced issues like scalability, security, and protocol liquidity, and from this rose the second generation of DeFi protocols.

The focus of most DeFi 2.0 protocols is to provide liquidity as it is the lifeblood of any token. Users are instigated to provide liquidity through incentive programs that reward them with additional tokens basically known as yield farming or liquidity farming. Users stake or lock up their crypto assets into smart contracts and in return are offered additional tokens usually the same token as an incentive for providing liquidity.

The DeFi 1.0 was more of an experimental phase and with the issues tackled by DeFi 2.0 protocols, the decentralized finance space will be pushed forward.

0VIX protocol is a DeFi 2.0 money market protocol. Before we understand what is 0VIX let’s discuss what are money market protocols in decentralized finance.

Money market protocols in decentralized finance are like traditional money markets in the sense that idle money is put to use to earn yields and such idle money is supplied to participants in need of borrowing funds to grow their business and pay for expenses but in a decentralized money market, all this can be done with the help of just an internet connection and on-chain cryptocurrency through the execution of smart contracts.

Participants borrow a short-term cryptocurrency loan to borrow one cryptocurrency while using another cryptocurrency or other digital asset as collateral and the collateral is sold and paid to the lender in the event the borrower fails to pay back the borrowed loan. In exchange for the loan borrowed the lender receives a fee from the borrower usually in the form of interest. This interest rate is typically a function of supply and demand to ensure sufficient liquidity is available to both borrowers and lenders.

The benefits of Money Market Protocols in Decentralized Finance are:

A. Non-custodial in nature

B. Permissionless

C. Overcollaterized

D. Open Composability

Now that we’ve learned about the Money Market Protocol let’s discuss the 0VIX protocol.

What is the 0VIX protocol?

0VIX protocol is built on Polygon (initially known as MATIC), it is a DeFi 2.0 liquidity market protocol dApp that enables lending and borrowing of cryptocurrencies.

0VIX protocol was launched by the team behind the GOGO protocol, it is the core Polygon Money Market Protocol. It is created to be the next evolutionary step in money-market protocols with its elegant technology, smart tokenomics, and frictionless User Interface (UX) making it attractive to all users.

The protocol allows users to lend, borrow and earn interest using their cryptocurrency and provides liquidity providers incentives as a form of passive income, and allows borrowers to borrow in an over-collaterized manner.

Since the boom of DeFi, most of the DeFi activity is carried out on the Ethereum Blockchain causing scalability issues and traffic congestion resulting in high transaction fees which in return has made it difficult for new and existing users to engage with DeFi.

0VIX provides a solution for the above problems through a suite of DeFi products that are highly scalable, easy to use, cost low transaction fees and provide access to permissionless lending and borrowing.

0VIX is open-source and permissionless lending and borrowing platform allowing any third party to create protocols on top of the 0VIX protocol.

Features of 0VIX are as follows:

A. Supply Assets

Users can choose to invest from a list of stablecoins and assets to receive competitive APYs.

B. Borrow Assets

Users can borrow against the assets supplied by them on the protocol on enabling them as collateral.

C. Claim 0VIX

Any interaction with the 0VIX protocol makes users eligible to claim 0VIX.

D. Lock 0VIX

Users can lock in their 0VIX tokens for a specific time period and in return earn ve0VIX proportional to the time period they locked in their 0VIX token.

E. Vote for Market Rewards

After every ten days, holders of ve0VIX can vote on how the rewards should be distributed across all the market participants.

Collaboration between 0VIX and EPNS

0VIX protocol can top its already frictionless and smooth UX with a dedicated decentralized push notification communication channel and create a universal appeal for new and existing users to engage with the Polygon Native Money Market Protocol.

To do so the collaboration between 0VIX and EPNS will play a pivotal role as the EPNS protocol offers to create a channel for the 0VIX protocol users that on subscription makes the users eligible to receive real-time updates directly to their linked digital wallets.

EPNS has a mobile application, Chrome extension, and a dApp which makes sure that users never miss out on any notification or update from the 0VIX Protocol.

Users of 0VIX will receive the following updates through the communication channel created by this collaboration:

A. Liquidation Calls on collaterals reaching liquidation.

B. Whenever the collateral is liquidated.

C. Change in any of the parameters of the protocol.

D. Any new asset support addition on the platform.

E. Whenever the voting governance begins and closes.

0VIX protocol and EPNS protocol together will be able to engage and maintain the influx of users poised to be involved with the 0VIX protocol as it is going to bring in the next revolutionary step in the money-market protocol. This collaboration will take the DeFi platform a step forward in its mass adoption and the smooth user experience will make it attractive for users scared to engage with the complex world of DeFi.


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