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Thank you so much for the detailed comment! This helps a lot! From practical perspective you are saying its not possible to exchange ZUSD and DLLR to some other stablecoin? I understand the redemptions can be annoying but with current positions in the market it does not look as a pressing issue. Also the network is still usable and if you want to be safe you take lower leverage no? What do you mean by broken exactly? Do you think the platform is unusable? It sucks if you cannot transform into proper stable coin such us USDT but you can still use it to create leveraged BTC position no? In this sense it could be good, or am I missing something?
I was a Zero user. I was lucky enough to onboard whilst it was still in beta, and have held loans in the protocol to leverage Bitcoin. I used to think Zero was great, and it had a lot of potential; it still does, but it's broken in its current state. I've been on numerous Discord community calls about Zero. Discussing both the positives and negatives. The current problem with the product is redemptions and liquidity. Redemptions are the single biggest obstacle to Zero being a fantastic product. If you're not aware, anyone can redeem ZUSD for RBTC at any time; however, the redemption value is deducted from the loan with the lowest collateral ratio (CR). So, if you're close to the minimum 150% CR allowed and some whale comes along and redeems RBTC, it's coming out of YOUR stack, which could be enough to tip your position into the negative and cause a liquidation. There have been many instances when the loans in the protocol were overcollateralized by 400-1000% as users rushed to avoid being the most undercollateralized position. The other side of the issue is liquidity; there simply isn't enough demand for the DLLR/ZUSD on the other side of the loan. Good luck trying to move your stables cross-chain. Zero is close to being amazing, but it's just not there yet. I'd rather have an interest rate and know my coin is safe, than an origination fee with no interest, but the risk that my position could be redeemed against. For now, I'm keeping an eye on tBTC, Tropykus, and will probably experiment with HodlHodl lending.
You take out a 1M ZUSD loan Immediate step: Convert into DLLR, the main stablecoin used for DeFi applications across Sovryn ecosystem With this, you currently can: 1. Convert into USDT or USDC through Babelfish aggegator, then transfer and cash out through the many options that exist throughout the cryptoworld, eg through Coinbase. Fund your lifestyle pay bills, etc. 2. Lend to earn interest on [Sovryn](https://sovryn.app/earn/lend) (interest paid out stablecoin) 3. Trade for more assets - like buying BTC or the protocol's governance token, SOV. 4. Provide liquidity for trading pools When do you pay back? Whenever you want. Or never. You're lending against yourself. No one is coming to ask you questions. But remember to watch your collateral ratio. If it fall before 110%, automatic liquidation begins. Add/remove collateral as needed. No other charge throughout the life of the loan. 8% Origination fee: Charged immediately the loan is issued, and distributed to stakers in the protocol as per their voting weight. (SOV stakers controlling the Bitocracy) As always, Disclaimer: Not Financial advice. You still need to DYOR.