0VIX

Lending

0VIX is a money market protocol built on Polygon that enables anyone to lend and borrow assets.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
0VIX enables users to borrow and lend tokens directly on its platform with low gas fees due to the high scalability of Polygon.
What we like less
The lending platform uses a shared liquidity pool so only assets with sufficient liquidity can be added. This is because a default in one market can have a contagion impact on 0VIX as a whole.
What it means for you
You can earn high yields by depositing or borrowing assets that are currently boosted by the pre-mining of protocol token incentives.
Podcast
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Degen Responsibly
0vix: Innovating in Lending Markets
Our guest today is Jakub Warmuz from 0vix Protocol. 0vix is on a mission to help investors unlock liquidity from their assets on Polygon with greater capital efficiency. They are building a lending market that takes risk mitigation and risk management seriously.  In this conversation we explore, how 0vix works, what makes them unique, and how this model is helping users in earn competitive rates on their assets. We also dive into how 0vix uses its built-in mechanisms to mitigate risk and some of the innovations that 0vix wants to bring to market. ----- Degen Responsibly is a series of live talks by Exponential DeFi and a guest protocol. In these conversations we explore some of the latest and greatest projects in DeFi, what makes them unique, their builders but also talk about the risks and what to watch out for. Our goal is to help investors make better informed decisions and help them save time as they do their own research. ----- Learn more about us at exponential.fi and follow us @exponentialdefi ----- Information provided here is presented for educational purposes only and does not consider financial advise or any offer or solicitation to buy any of the tokens or invest in any of the pools mentioned throughout the podcast.
Information
Exploit/Hacks
One
Info
Key Metrics
  • TVL: $0 (Rank #233)
  • TVL Ranking by Lending: #47
  • Blockchain: Polygon zkEVM, Polygon
  • Chain TVL
    • Polygon zkEVM: $0
    • Polygon: $0
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors including PeckShield and Omniscia
  • Public team promotes accountability
  • One mitigated protocol hack since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Bottom 80% by total value locked increases risk
  • Core contracts can be upgraded with just an EOA wallet
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Basic controls in place to prevent risky borrowing
  • Basic mechanisms in place to incentivize liquidations
  • No reserves or no stability module
Things to know about 0VIX

How 0VIX works

0VIX consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. 0VIX borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, commonly referred to as overcollateralization. Interest rates on 0VIX are driven by market supply and demand. To facilitate this activity, 0VIX issues oTokens to lenders that reflect accruing interest on the underlying token.

How 0VIX makes money

0VIX has not launched its governance token yet and there is currently no details on how the protocol generates revenue.

How you make money on 0VIX

You earn lending fees on 0VIX by depositing your idle crypto assets to be used by borrowers looking for leverage. 0VIX also offers additional protocol incentives in its VIX token to bootstrap demand (to be launched).