Art of Tomas Profile picture
Aug 23, 2022 9 tweets 8 min read Read on X
1/10
Understanding the "ZERO Stability Pool".

#ZERO is the new product released by @SovrynBTC using @RSKsmart

A #DEFI platform using #SmartContracts on #Bitcoin to allow users to borrow against their assets with NO interest
2/10
A key element to understand, and what makes this #DEFI protocol different from centralized lending platforms like #Celsius is the Stability pool.

In short it is set up to punish risk takers and preserve the funds prudent actors
3/10
This is how it works:

We lock our #Bitcoin in the #SmartContract, we get a #ZUSD #Stablecoin loan.

We can then add the coins to the stability pool.
5/10
This uses people's self interest in favor of the longevity of the protocol, makes sure that no line of credit can endanger the entire ecosystem for the safer players

And rewards those who provide the funds for it to work!
6/10
Because we are talking of #DEFI, all the information is on chain, another big step forward from #CEFI.

So we can see how many lines of credits are close to the danger zone in real time
7/10
This acts as further incentives for people to add funds to the stability pool, which makes the system more resilient.

It acts as a signal to self profit seeking individuals to where their funds provide more value.
As free Markets are supposed to do
8/10
Having all the information available and auditable at all times, I know for a fact where my #Bitcoins are. This make #ZERO and #DEFI incredibly powerful.

It uses #BTC only as collateral and runs on @RSKsmart to me, makes it one of the best things out there for Bitcoiners
9/10
@RSKsmart is merged mined by #Bitcoin miners and all fees get paid to the #BTC miners. So #ZERO helps the main chain be more profitable to mine, this helps in making it more secure!
10/10
As someone who earns fully in #Bitcoin, being able to borrow against my assets to afford daily costs while keeping access to the future valuation of them is very useful.

It is still a new protocol so be sure to understand it and test it before jumping in

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More from @TheArtOfTomas

Sep 13, 2022
1-10
Today I’ll show you how we can pay for Rent and Living Expenses with our #Bitcoin without selling them.

Using #ZERO from @SovrynBTC , a #DEFI platform running on @RSKsmart , a sidechain that uses #BTC as its native currency as it is merged mined by the BTC miners
2-10
All we need to get started is some #Bitcoin and an @RSKsmart enabled wallet, I personally use @Liquality_io , but @MetaMask or @defiantApp work as well.

We exchange our #BTC for #RBTC using the #FastBTC bridge from @SovrynBTC at live.sovryn.app/fast-btc/depos…
3-10
The #RBTC is always backed 1 to 1 with #BTC and can be traded back and forth

This maintains their value, and once in the @RSKsmart blockchain we can take advantage of #SmartContracts and #DEFI platforms like @SovrynBTC , @moneyonchainok and @tropykus secured by #BTC
Read 10 tweets
Aug 9, 2022
1/14
With everything that is happening with the blacklisting of tornado cash, #USDC and #USDT. With all the Risks of centralized exchanges becoming obvious after #Celsius. And with #Terra showing us what can happen with faulty designs…
2/14
I would like to explain a little about the @RSKsmart (#Rootstock) ecosystem and why I am such a big believer in it.
Firstly, it is secured by the #Bitcoin miners
Secondly, almost all the fees get paid to the #BTC miners, making the main chain stronger
3/14
The native token is backed 1:1 with #BTC, it follows its price action. And can be converted back and forth at any time.
It is accurate to state that the entire #Rootstock (@RSKsmart ) network is designed from the ground up to make #Bitcoin stronger
Read 14 tweets
Jul 19, 2022
1/11 - The future of Bitcoin lending
ZERO is a new protocol released by @SovrynBTC , a #DEFI platform built on #Bitcoin, using the @RSKsmart side chain, which combines #Ethereum Smart contract capabilities and the #BTC miner infrastructure.
2/11
We’ve all heard what has happened in the last days with things like #Celsius imploding and other #CEFI running into problems.
They were using clients colateral to bet on the market and in the end, the users had to pay the costs.
There is a clear need for a better system.
3/11
#ZERO is entirely different, you can lock your colateral #BTC in the smart contract and issue a loan of stable coins to yourself. You act as both the borrower and lender, there is no interest on your loan and no deadlines you are forced to meet, repaying it when convenient
Read 11 tweets

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