Protocol Overview
What is ZEUR?
ZEUR is a decentralized lending protocol that enables users to borrow EUR-denominated stablecoins against crypto collateral while paying no interest. Their collateral automatically earns staking rewards on their deposited assets and this yield is distributed to EUR lenders. The protocol combines traditional lending mechanics with liquid staking token (LST) integration to maximize capital efficiency and make EUR stablecoins affordable for everyone.
Key Features
🏦 Collateralized Lending
Supply crypto assets (ETH, LINK) as collateral
Borrow EUR-denominated stablecoins (EURC, EURI) against collateral
Overcollateralized lending with configurable loan-to-value (LTV) ratios
🚀 Automatic Staking Rewards
Deposited ETH automatically stakes across multiple LST protocols (Lido, RocketPool, EtherFi, Morpho)
Deposited LINK automatically stakes via StakeLink
Users earn staking rewards while their assets serve as collateral
💱 EUR-Denominated Borrowing
Borrow against EUR-pegged stablecoins
Diversification away from USD-denominated assets
Support for multiple EUR stablecoins
🛡️ Liquidation Protection
Automatic liquidation system to maintain protocol solvency
Liquidation bonuses for liquidators
Health factor monitoring
Architecture Overview
Core Components
1. Pool Contract
Central hub for all lending operations
Handles supply, withdraw, borrow, repay, and liquidate functions
Manages collateral and debt configurations
Tracks user positions and health factors
2. Tokenization System
ColTokens: Represent collateral deposits (colETH, colLINK)
DebtTokens: Represent borrowed amounts (debtEUR)
ColEUR: ERC4626 vault for EUR stablecoin deposits
3. Vault System
VaultETH: Manages ETH deposits and LST staking strategies
VaultLINK: Manages LINK deposits and staking
Staking Routers: Interface with various LST protocols
4. Oracle Integration
Chainlink price feeds for accurate asset valuations
Real-time price updates for liquidation calculations
Multi-asset price support (ETH, LINK, EURC, etc.)
5. Access Management
Role-based access control system
Protocol administration and governance
Secure upgrade mechanisms
User Journey
For Suppliers (Lenders)
Deposit Collateral: Supply ETH/LINK to earn staking rewards
Automatic Staking: Assets automatically stake across LST protocols
Earn Rewards: Receive staking rewards while maintaining borrowing capacity
Withdraw: Unstake and withdraw assets at any time (subject to utilization)
For Borrowers
Supply Collateral: Deposit ETH/LINK as collateral
Borrow EUR: Take loans against collateral up to LTV limits
Manage Position: Monitor health factor and collateral ratio
Repay: Repay loans to unlock collateral
For EUR Suppliers
Supply EUR: Deposit EUR stablecoins to earn lending interest
Earn Interest: Receive interest from borrowers
Withdraw: Withdraw supplied EUR plus accrued interest
Risk Management
Collateral Management
Dynamic LTV ratios based on asset volatility
Liquidation thresholds to protect lenders
Supply and borrow caps to limit exposure
Liquidation System
Automated liquidation when health factor < 1.0
Liquidation bonuses to incentivize liquidators
Partial liquidation limits (50% max per transaction)
Oracle Security
Chainlink price feeds for reliable pricing
Price deviation monitoring
Circuit breakers for extreme market conditions
Benefits
For Users
Capital Efficiency: Earn staking rewards while borrowing
EUR Exposure: Access to EUR-denominated lending
Diversification: Spread risk across multiple LST protocols
Flexibility: Borrow against multiple collateral types
For the Ecosystem
Liquidity: Deep liquidity pools for EUR stablecoins
Innovation: Novel combination of lending + staking
Accessibility: Simplified DeFi experience
Composability: Integrates with existing DeFi protocols
Supported Assets
Collateral Assets
ETH: Native Ethereum with LST staking
LINK: Chainlink token with staking rewards
Debt Assets
EURC: Circle's EUR stablecoin
EURI: Additional EUR stablecoins (extensible)
Liquid Staking Protocols
Lido: stETH integration
RocketPool: rETH integration
EtherFi: eETH integration
Morpho: Morpho vault integration
StakeLink: LINK staking integration
Next Steps
This overview provides a high-level understanding of ZEUR protocol. For detailed technical information, please refer to the specific concept documents:
Last updated