Zethyr Finance - Crypto Academy:- season 4 week 8 :- Homework Post for professor @fredquantum | #club5050

Hey there this is @prakhar9675 this side and this is a homework post for professor @fredquantum.

So let's answer all the questions aksed.

Source

What is Zethyr Finance?

---

---

Zethyr Finance is decentralised app or dApp that is developed on the tron blockchain just like the justswap. The basic and main difference between these two is that justswap is developed and owned by tron foundation while zethyr Finance is neither developed nor owned by tron foundation and belongs to a third party.
The main feature of zethyr Finance is that is enables lending on borrowing on its platform. As it is developed on tron blockchain, users can lend and borrow tron assets.

This platform allows its user to hold tokens in the zethyr ecosystem that allows them to lend and borrow the tron based assets. When a user lends it's assets, a certain amount of reward (APY) is rewarded to that user and similarly when a user borrows those assets, that is subjected to s certain amount of interest that is to be paid while returning that asset.

zToken is the native coin of this platform and users are given zTokens for their respective asset which were supplied to liquidity pool. Such as zUSDT is given for supplying USDT. Also this is a TRC 20 coin and this have many other features we will discuss in this post

Users can use these tokens for trading and many other purposes here.

What are the features of Zethyr Finance? Discuss them. What's your understanding of DEX Aggregator?

---

---

There are many features available in zethyr Finance which makes it stand out of many other dApps. In this section we will discuss some of those features available on zethyr Finance.

1. The Swap feature:- with the introduction of Zethyr swap V2, the swapping feature on zethyr has changed drastically. It now used the justswap and Binance platform to swap TRC 20 tokens with 0% fees levied on the user. Using this feature, zethyr Finance analysis the rate on justswap and Binance and after that tokens are swapped at best rate. User also earns ZTR tokens while swapping the tokens.
   

2. Availablity of Z-tokens:- zTokens are used by zethyr Finance for multipurpose. Here overall balance is shown by the platform in zTokens. Also when a user lend it's TRC 20 tokens, reward are paid in the form of zTokens that are to be paid from the transaction fees.
   Also zTokens are of TRC 20 tokens and can be used in the same way by any user also you can use zTokens for borrowing from the zethyr Finance this means this also guarantee the collaterals.
   

3. Chain-swap feature for stable coins:- As we know stable coins are found on multiple chains because of it's usability and stability. For example we know that USDT is a stable coin which is found on both TRC and ERC blockchain.
   This feature of zethyr finance allows its user to chain swap the stable coins from TRC 20 to ERC 20. For this a fees of 10 USDT is levied on the user so it's quite expensive to chain swap stable token.
   
   For example here if I had swapped 100 USDT from TRC 20 to ERC 20 USDT, I would have gotten 90 USDT.

4. The Lend & Borrow Feature:- The lend and borrow feature is the one in which it allows its user to provide liquidity to the platform by staking or licking their assets for a certain period of time and in return users are paid with reward that are paid out from transaction fees. This feature helps in increasing scalability of the platform.
   At this time a total of tokens worth $ 624,517.53 is locked in this platform.
   

The Zethyr DEX Aggregator

---

---

Before the update of zethyr 2.2.8, there were two different features named zethyr swap and zethyr exchange. In zethyr exchange, it used the zethyr protocol based on the data recorded and the use of order book model in which users could place their assets at desirable price and when the price of that asset meet that order price, it was executed. And in zethyr swap, users could swap their assets.

But with the introduction of Zethyr version 2.2.8, these two separate entity were fused together which gave rise to DEX aggregator. And thus the protocol which used to use order book is now unavailable.
Now users only can swap their assets just like normal swapping.

But the rise of DEX aggregator has also one huge feature. It compiles many other swapping platform and then uses that to swap assets to give its users best price to exchange.

Now it's using Justswap and uswap for this action but soon sun.io will also be available to use.

^{screenshot taken from zethyr Finance app}

For example, when I tried to swap my TRX for different assets, it analysed the price on different platforms and then matched with the platform with best price.

When I tried to swap with ethereum, two platforms, justswap and uswap were available to use but due to better price uswap was matche for this purpose.

On the other hand when I tried to swap for 888, justswap and unifi were the available platform and justswap was matched for this swapping.

Explore the Zethyr Finance Markets and show your observations in terms of profitability of Supply and Borrow (Hint: Best Supply/Borrow APY). Screenshots required.

---

---

We can explore zethyr Finance by visiting this dApp through tronlink wallet. But in my case, I was facing some problem so I visited this dApp through it's site. You can visit this site by clicking on this link

Here on the homepage, you can see all details of this platform such as all markets and total lending and borrowing along with related APY

Here you can see all markets available for lending and borrowing and along with this we can also see lending and borrowing APY and total lending and borrowing in USD.

Market	total supply(in USD)	supply APY
TRX	539,175.57	4.55%
USDT	6,836.59	26.15%
WIN	13,109.21	13.55%
BTT	68,120.40	6.46%

Market	total borrow (in USD)	borrow APY
TRX	23,779.71	10.80%
USDT	39	8%
WIN	NA	23.0%
BTT	23.81%	20.00%

It also gives us insight view of total lending and borrowing in USD seperately and also the share of every token explicitly.

Let's have s look on this.

Total supply = 627,241.79 USD
Total borrowing = 23,845.55 USD

Market	percentage in total supply	percentage in total borrowing
TRX	85.96%	99.72 USD
USDT	1.09%	0.18%
WIN	2.09%	0.00%
BTT	10.86%	0.10%

From the above tables we can conclude that USDT is having the Lowest borrowing APY that is 8% which means that while returning the asset we have to pay only 8% as compared to 10% for borrowing TRX and others. Thus USDT is having the best borrowing APY.

Similarly USDT is having the highest supply APY that's is 26%. This means we will get most reward while supplying USDT. Thus USDT is having the best supply APY.

Show the steps involved in connecting the TronLink Wallet to Zethyr Finance. (Screenshots required)

---

---

To connect tronlink wallet to zethyr Finance,

1. Go to tronlink wallet app

2. Go to discover section and click on search box
   

3. Now search for zethyr Finance and click on that
   

4. Now as soon as it opens, it will be connected to your tron account. To see that it has been connected, you can see your tron private key there.
   

5. Now to make sure further, you can see your balance by clicking on swap feature and it will show you your balance.
   

Now you can use and interact with zethyr Finance using your tronlink wallet app.

Give a detailed understanding of ztoken and research a token of another project that serves the same purpose as it.

---

---

zTokens are the native tokens of zethyr finance and these are established on TRC 20 standards thus holders of these coins can take part in the governance of the platform by voting and by proposing changes in the platform.
zTokens are given to users for supplying their assets in liquidity pool in the ratio of 1:1 this means for supplying USDT,BTT and WIN user gets zUSDT, zBTT,zWIN respectively. And similar to other tokens these can be transferred and can be used for trade anytime.

The interest for supplying token on zethyr finance is also paid in zTokens which can also be transferred and used for trading as discussed.

When we release our assets from liquidity pool, zTokens are burnt and the amount is can be redeemed by the user that has been in supply pool. And the main feature of these zTokens is that by using a zToken we can have all benefits that are associated with the corresponding tokens for example zUSDT is considered equivalent to USDT here and similarly zBTT equals to BTT.

Another project similar to zToken that perform the same purpose is jToken on justswap. In justswap users get jToken corresponding to different tokens. For example for supplying USDT, jUSDT is given to users in the ratio of 1:1. The main difference between these two projects is that zToken are found on tron blockchain and is third party dApp while justswap is a project owned by tron foundation.

Similar to zTokens, jToken are considered equivalent to their corresponding tokens and all benefits can be availed by holding these which are acquired for supplying asset to liquidity pool. Also by holding this users can be a part of governance as this is a TRC 20 standard coin. And similar to zethyr finance, in justswap interest is also paid in these tokens and also can perform the same action.

Perform a real Supply transaction on Zethyr Finance using a preferable market. Show it step by step (Screenshots required). Show the fees incurred

---

---

For this section, I will supply TRX on zethyr Finance.
To do this,

1. Go to swap section and then click on three lines on the top left hand and click on lending
   

2. Scroll down a little bit and under the section of lend TRX and tron assets click on supply
   

3. By default, this option is disabled. So to enable this, click on the market you are supplying i.e. TRX in this case and click on enable
   

4. Now as I don't have enough energy to do this transaction, a total of 20 TRX will be burnt to make this possible.
   

5. Now burn TRX to make this transaction successful and do this by entering your tron wallet password and confirming the transaction.
   

6. Now this option has been enabled, now again click on the market and enter the amount you want to supply. Here I am entering 10 TRX. Minimum amount of TRX that can be supplied is 10 TRX.
   

7. Now again, I don't have enough energy to complete this transaction. And I will have to burn 20 TRX to make this happen.
   

8. Now confirm this transaction by clicking on confirm and then by entering the password. And then your tokens will be supplied
   
   .
   

9. Here you can say that my balance has been updated and as I have supplied a total of 10 TRX, you can see my supply balance is worth of 10 TRX.
   

You can check this transaction by exploring the following block using tronscan.
Hash :-a4f7a0ca4cedd8b8418e11fe8287c8ed22a02c9a2367eeb74e576f9d90cae754

Here my transaction has been validated by nodes and you can see I have spent a total of 114,245 energy and 350 bandwidth.

Total fees incurred:-

TRX burnt in enabling the supply option= 20 TRX
TRX supplied = 10
TRX burnt for acquiring bandwidth and energy = 20

So I have paid a total of 50 TRX in which 40 TRX is fees levied on me for supplying 10 TRX.

7- Collateralize your asset to Borrow on Zethyr Finance, repay the borrowed asset and withdraw your supply. Show the steps involved and your observations (like the fees incurred). (Screenshots required).

---

Collateralizing on my Asset:- On zethyr Finance you can collateralizing on TRX. This will give you borrow limit by usi which you can borrow tron assets

To do this,

1. First of all go to lending section (as mentioned earlier) and then here you can see the option for collateral is off.
   

2. To make this option enable, click on this option and it will ask for your permission that you really want to use these TRX as collateral. Click on use TRX as collateral
   

3. Now it requires some energy to do this. And as I don't have energy, 2 TRX will be burnt to make this possible.
   

4. Now confirm this transaction by clicking on this and by entering password.
   
   .
   

5. And then you can see, this option has been enabled.
   

6. So you can see my borrow limit has been increased to 0.46 USD. And my borrow balance is 0 this means I haven't borrowed anything yet
   

Total fees levied on me:- 20 TRX were burnt for energy

To Borrow from the Zethyr Finance :-
Borrow limit depends upon the value of token you deposit. Thus the maximum token a user can borrow depends upon the collateral assets' value.

Maximum token that can be borrowed = value of deposited token/ liquidation ratio

Now liquidation ratio is the minimum collateralisation ratio that zethyr use for protecting assets that are being borrowed.

Now collateralisation ratio = (market value of token in TRX)/(borrowed TRX+interest (APY))

A user can borrow multiple time until it's liquidation ratio is less than collateralisation ratio.

As I have a borrowing limit of 0.46 USD, I can borrow some token.
Let's see how it's done.

1. Now as I have acquired borrow limit, now to borrow assets, go to the same supply section and there under the borrow market click on any asset you want to borrow.
   
   ^{initially I clicked on USDT to borrow that but due to insufficient borrow limit, I couldn't do it and later I forgot to take a screenshot for clicking on BTT}

2. Now you have to enable this option and it requires energy. As I have insufficient energy, TRX will be burnt to acquire energy.
   

3. Now confirm this transaction by clicking ok confirm and by entering the password.
   
   .
   

4. Now your borrow option will be enabled. And then click on BTT icon.
   Enter the amount you want to borrow. You can also click on safe max and appropriate amount eill be entered automatically.
   
   Click on borrow to proceed.

5. Now again, I don't have enough energy to complete this transaction. So this will burn my 20 TRX to acquire some energy.
   

6. Now confirm this transaction by clicking on confirm and then by entering the password.
   
   .
   

7. Now you can see that in my balance, I have spent 79.91% of my borrow limit and have got 111 BTT.
   
   Here you can also see my net APY is -3.44% because my supply APY is less than my borrow APY. This means I have to pay more than I will get Reward.

8. Here in my balance you can also see that I have got a total of 111 BTT. This means my borrow was successful.
   

To repay borrowed assets:-

1. To repay borrowed assets, go to your borrow section and then click on the asset you want to repay. For example I have borrowed BTT and now I want to repay it. So I clicked on it
   

2. Now switch to repay section by swiping right-ward. And then enter the amount you want to repay. Here I want to repay while amount. So I am clicking on safe max and then click on repay
   

3. As usual I don't have energy to make this transaction. So 20 TRX will be burnt for this action.
   

4. Now confirm this transaction by clicking on confirm and then by entering password.
   
   .
   

5. Now you can see that my borrowed BTT has been repaid. I still have a little amount of BTT that can't be repaid.
   

How to Withdraw Asset from the Supply Pool:-

Now there is a limit regarding Withdraw amount. That is a minimum of 10 TRX can be withdrawn from the supply pool. But as I had only supplied only 10 TRX and not full amount is withdrawn because of fees is levied. So I couldn't withdrawn that amount. So I had to supply 10 TRX more to the supply pool.
So now my net supplied TRX are 20

To withdraw my supplied asset:-

1. To withdraw, first of all click on the asset you want to withdraw.
   

2. Now enter the amount you want to withdraw. For example I am here clicking on safe max.
   

3. Again due to insufficient energy, I will have to burn 20 TRX. To do this confirm this transaction and then enter your password and then your supplied asset will be released.
   

4. So here you can see that my TRX has been released. And now I have no supplied TRX.
   

So by following these simple steps, you can supply, borrow, put your asset as collateral and can earn borrow limit and release asset easily.

The thing that should be remembered is that these all processes require high energy to complete the transaction and if you don't have enough energy then a certain amount of TRX will be used to compensate that energy. You can also get energy by freezing your TRX or staking those but here I chose to burn those as by this I will get more energy.

What do you think of Zethyr Finance? Is it great or not? State your reasons.

---

---

Zethyr Finance is a great DeFi system. And there are many reasons for that that includes it's stable swap and many others features..

1. It allows its user to supply tokens to liquidity pool and to earn reward in the form of zTokens.
   By using this feature one can supply it's spare or asset which it is holding for a longer period to the ssupply pool and can earn passive income.

2. For supplying asset, zTokens are given in the ratio of 1:1 which can be used in the same way as the underlying assets. Thus the need of redemption of assets is very less.

3. Anyone that needs assets can borrow assets for any period of time on the basis of its collateral asset.
   Here interest is levied on daily basis but it is compound in nature this must be kept in mind before borrowing it for a longer period of time.

4. It's stable swap feature enables its user to swap stable coin among multiple blockchain to increase utilisation in case of you need USDT on any other blockchain.

5. Fees levied here for buy and sell market is 0.1% which is quite less.

6. Another great feature is the safe max feature which ensures the trade liquidity and avoid future liquidation risk..

7. It's swapping feature enables its user to swap between any TRC 20 coin as per their need.

8. One of the most important feature of this is DEX aggregator which enables its user to Swap between any TRC 20 coin that too with best price by comparing prices on many platform such as justswap, uswap.

Thus we can say that zethyr finance is quite an amazing platform developed on tron blockchain but the two things that must be known to everyone using this that this is not developed and owned by tron foundation and also any action here consumes a lot of energy thus if you don't have enough energy then appreciate amount of TRX will be used for compensation.
Here in this task only for just supplying asset, borrowing asset, I had to burn around 80 TRX and many TRX were also burnt by me for many unsuccessful attempt. So these must be keep in mind while using this.

Conclusion

---

---

Thus we can say that zethyr Finance is a very amazing platform having many outstanding features that are unavailable on many other platforms. It's Dex aggregator is one of its key features along with stable swap. These two features might not be looking major while hearing about it but these are very important for anyone using these.

Also it enables its user to lend and borrow assets which can be useful for any user for a short period of time but due to compund interest this might not be beneficial for everyone..

And also we can say that zethyr finance acts as a brigde between tron blockchain and ethereum blockchain as we can swap coins between these two blockchains as per our utilisation. But as for now, this feature is only for stable coin.

So that's all from my side. Hope I was well understood..

Thank you

Cc
@fredquantum