Curated & Cross-chain Vaults
This sections introduces vaults that extend and simplify the functionality for users who'd like to be passive lenders on ZeroLend One
Last updated
This sections introduces vaults that extend and simplify the functionality for users who'd like to be passive lenders on ZeroLend One
Last updated
Inspired by MetaMorpho, Curated vaults follow a similar tangent.
Curated Vaults are non-custodial, ERC4626-compliant vaults that enable users to deposit a single asset and gain diversified exposure to various pools based on their risk appetite. Overseen by entities like Risk Managers, DAOs, and other protocols, these vaults automate risk management, sparing users from making complex decisions. The vault dynamically adjusts risk exposure for all deposited assets, offering a hands-off experience.
In contrast, lending to a single ZeroLend One pool is more complex than on Aave and Compound. Suppliers on ZeroLend One must consider multiple factors, including collateral assets, liquidation LTV, oracles, and caps, making it suitable for more sophisticated lenders. Aave simplifies the process by having governance make decisions for suppliers, catering more to passive lenders.
Curated Vaults bridge this gap by automating and decentralizing the decision-making process, similar to platforms like Aave and Compound. They facilitate the supply of liquidity to lending pools, allowing users to delegate risk management to the vault. This provides a more passive and streamlined experience for users looking to engage in DeFi lending.
Cross-chain vaults are extensions of regular vaults with one key difference. Users supply assets on one chain, and the vault automatically reallocates funds across many other chains.
Cross-chain vaults address a core pain point with many new upcoming L2s' (e.g., zkSync, Blast, Taiko, etc..) liquidity.
Most newer L2s face a problem of attracting liquidity into the chains and oftentimes end up having lending markets that have high amounts of utilization either because:
There isn't enough liquidity bridged on the L2.
There is too much demand for borrowing on the L2
By accepting deposits on the ETH mainnet (the most liquid chain), ZeroLend abstracts the chain bridging process for vault managers and allows vault managers to capture the demand from L2s using the liquidity from the ETH mainnet.
Users can deposit crypto assets onto the ETH chain, and the vault manager can bridge the liquidity into another chain. Since most of the liquidity is on the ETH chain, this allows users to get exposure to yield from other L2 chains while at the same time giving L2 curators the liquidity of ETH.
