0% interest loans on your bitcoin. No payback period Ever.

FAQ

Your most common questions, answered. Missing something? Ask us here.

What is Zero?
Zero is a decentralized protocol that allows you to borrow ZUSD (a USD-pegged stablecoin) interest-free, using RBTC as collateral. The RBTC collateral must be maintained at a minimum collateral ratio of 110%. Loans are further secured by a Stability Pool containing ZUSD and by fellow borrowers collectively acting as guarantors of last resort. Zero as a protocol is non-custodial, censorship resistant, and governed by stakers.
What is the motivation for Zero?
Stable-value assets serve as an essential building block for decentralized financial applications and now represent over a hundred billion dollars in value. Zero offers a way to borrow stablecoins that is capital efficient, user-friendly, and decentralized. Most stablecoin value takes the form of centralized, fiat-collateralized stablecoins like Tether and USDC, whereas decentralized stablecoins like DAI and sUSD make up only a small portion of the supply and are not collateralized by BTC or secured by a bitcoin sidechain.
What are the key benefits of Zero?
Key benefits include:
- 0% interest rate — borrowers do not need to worry about constantly accruing debt
- Minimum collateral ratio of 110% — efficient use of RBTC on deposit
- Directly redeemable — ZUSD can be redeemed at face value for the underlying collateral at any time, guaranteeing a price floor of $1
- Fully decentralized — Zero contracts are governed by Sovryn Bitocracy
- Zero is deployed within the Sovryn protocol, making it censorship-resistant and the collateral system transparent
Does Zero charge any fees?
Zero only charges one-time fees. A borrowing fee is charged when ZUSD is borrowed, and a redemption fee is charged when ZUSD is redeemed For borrowers, the borrowing fee is a percentage of the loan amount (in ZUSD). For redeemers, the redemption fee is applied on the amount paid to users by the system (in RBTC) when exchanging ZUSD for RBTC. Note that redemption is different from repaying your loan as a borrower, which is free of charge.
What are the main use cases of Zero?
- Borrow ZUSD secured by RBTC by opening a Line of Credit
- Secure Zero by providing ZUSD to the Stability Pool in exchange for rewards
- Stake SOV to earn fee revenue paid for borrowing or redeeming ZUSD
- Redeem 1 ZUSD for $1 worth of RBTC when the ZUSD peg falls below $1
What is ZUSD?
ZUSD is the bitcoin-backed stablecoin used to pay out loans on the Zero protocol. It can be redeemed at any time for the underlying collateral at face value. Learn more about the stability mechanism .
How do I use Zero?
To borrow ZUSD, all you need is an RSK- or Ethereum-compatible wallet (e.g. MetaMask) and sufficient RBTC to open a Line of Credit and pay the gas fees. To become a Stability Pool depositor you need to have ZUSD. ZUSD can be borrowed by opening a Line of Credit.
How do I earn money using Zero?
Users can earn money through Zero in three different ways:
‍
1) Deposit ZUSD to the Stability Pool and earn liquidation gains (in RBTC)
2) Redeem 1 ZUSD for $1 worth of RBTC when the ZUSD peg falls below $1
3) Stake SOV and earn RBTC from redemption fees and ZUSD from borrowing fees
‍

0% interest loans on your bitcoin. No payback period, ever.

0% interest rate

110% Collateral Ratio*

1 zUSD ≈ 1 USD

0% interest rate

110% Collateral Ratio*

1 zUSD ≈ 1 USD

Maximize Your Bitcoin Today, While Retaining Future Value Tomorrow

Everything you get with Zero

How it works

Imagine your earning possibilities

Maximize Your Bitcoin Today, While Retaining Future Value Tomorrow

FAQ

Follow us on socials