L2 money-market protocol built on StarkNet

Ethereum is unrivalled in terms of security and decentralisation.

There is a huge opportunity in institutional DeFi

1.Users will be able to deposit their assets into a reserve pool, thereby providing liquidity to each money market. In return, users will get interest-bearing zTokens which represent their deposited share of the pool in addition to a claim on interest earned from the pool. The total assets in the pool grows over time from interest earned from borrowing, where the interest earned will depend on the interest rate model of each asset. Users can deposit any amount into the pool with no lock up period.

2.The whitelisting layer ensures that only permissioned participants will be able to deposit and borrow from reserve pools. The whitelisting process typically includes legal compliance checks (KYC, KYB, AML and CFT), administrative onboarding procedures (understanding terms and conditions, fiat-to-crypto on ramping, due diligence) and technical procedures (providing permissions for the selected Ethereum wallet addresses). Whitelisters will be responsible for the whitelisting process, separate from zkLend, with the necessary authorisation to duly conduct compliance checks, maintain relevant records and deploy standards required for permissioned users’ participation specific for each Apollo market deployment. zkLend will decide on the regulator-approved and/or licensed whitelisters in the implementation of Apollo markets. However there are several factors considered in determining whitelister suitability, such as (but not limited to): ● Whether they employ KYC, KYB and compliance standards in accordance, or to the same degree as FATF / local jurisdiction guidelines to identify and accept their users; ● Robustness of their AML / CFT programs (if any); and ● Reputation (licensed or otherwise) in their selected jurisdiction. Further details of responsibilities and duties of whitelisters and zkLend protocol will be built out as Apollo is developed to ensure further risk control, adequate compliance standards, and oversight are implemented. zkLend will work closely with financial and legal advisors.

Users can stake their ZEND tokens in exchange for stZEND. Upon the staking of ZEND, users will receive an equivalent amount of staked ZEND, which represents a claim to the underlying token, ZEND. Staking consists of depositing ZEND tokens into the protocol’s safety module. The purpose of the safety module is to act as a risk management tool in the event of a liquidity shortfall, primarily as a result of extreme asset prices fluctuation, liquidity squeeze events, oracle inefficiency/failure and liquidation risks. The safety module may use up to [30%] of the stZEND to cover the shortfalls.

ZEND is the native utility/governance token which also provides the economic incentives which will be distributed to encourage users to exert efforts towards contribution and participation in the ecosystem on zkLend, thereby creating a mutually beneficial system where every participant is fairly compensated for its efforts. ZEND is an integral and indispensable part of zkLend, because without ZEND, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on zkLend. Given that additional ZEND will be awarded to a user based only on its actual usage, activity and efforts made on zkLend and/or proportionate to the frequency and volume of transactions, users of zkLend and/or holders of ZEND which did not actively participate will not receive any ZEND incentives

L2 money-market protocol built on StarkNet

Ethereum is unrivalled in terms of security and decentralisation.

There is a huge opportunity in institutional DeFi

1.Users will be able to deposit their assets into a reserve pool, thereby providing liquidity to each money market. In return, users will get interest-bearing zTokens which represent their deposited share of the pool in addition to a claim on interest earned from the pool. The total assets in the pool grows over time from interest earned from borrowing, where the interest earned will depend on the interest rate model of each asset. Users can deposit any amount into the pool with no lock up period.

2.The whitelisting layer ensures that only permissioned participants will be able to deposit and borrow from reserve pools. The whitelisting process typically includes legal compliance checks (KYC, KYB, AML and CFT), administrative onboarding procedures (understanding terms and conditions, fiat-to-crypto on ramping, due diligence) and technical procedures (providing permissions for the selected Ethereum wallet addresses). Whitelisters will be responsible for the whitelisting process, separate from zkLend, with the necessary authorisation to duly conduct compliance checks, maintain relevant records and deploy standards required for permissioned users’ participation specific for each Apollo market deployment. zkLend will decide on the regulator-approved and/or licensed whitelisters in the implementation of Apollo markets. However there are several factors considered in determining whitelister suitability, such as (but not limited to): ● Whether they employ KYC, KYB and compliance standards in accordance, or to the same degree as FATF / local jurisdiction guidelines to identify and accept their users; ● Robustness of their AML / CFT programs (if any); and ● Reputation (licensed or otherwise) in their selected jurisdiction. Further details of responsibilities and duties of whitelisters and zkLend protocol will be built out as Apollo is developed to ensure further risk control, adequate compliance standards, and oversight are implemented. zkLend will work closely with financial and legal advisors.

Users can stake their ZEND tokens in exchange for stZEND. Upon the staking of ZEND, users will receive an equivalent amount of staked ZEND, which represents a claim to the underlying token, ZEND. Staking consists of depositing ZEND tokens into the protocol’s safety module. The purpose of the safety module is to act as a risk management tool in the event of a liquidity shortfall, primarily as a result of extreme asset prices fluctuation, liquidity squeeze events, oracle inefficiency/failure and liquidation risks. The safety module may use up to [30%] of the stZEND to cover the shortfalls.

ZEND is the native utility/governance token which also provides the economic incentives which will be distributed to encourage users to exert efforts towards contribution and participation in the ecosystem on zkLend, thereby creating a mutually beneficial system where every participant is fairly compensated for its efforts. ZEND is an integral and indispensable part of zkLend, because without ZEND, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on zkLend. Given that additional ZEND will be awarded to a user based only on its actual usage, activity and efforts made on zkLend and/or proportionate to the frequency and volume of transactions, users of zkLend and/or holders of ZEND which did not actively participate will not receive any ZEND incentives