ONEZ $ONEZ

ONEZ is a one-of-a-kind stablecoin developed by the ZeroLend Protocol. It is crafted with the primary objective of maintaining an equal value to one U.S. Dollar. Users generate ONEZ by providing collateral. In the event a user borrows, they are required to offer collateral at a specified ratio in order to obtain ONEZ. The coin is unique in the sense that when borrowed positions are paid back or liquidated, ONEZ returns back to the ZeroLend Protocol and is subsequently eliminated from the circulation.

Unique Aspects of ONEZ

What sets ONEZ apart from other stablecoins is its interest payment model. The interest accumulated from ONEZ users is not removed but, instead, it flows back into the ZeroLend DAO treasury. This unique feature not only provides increased assurance for the coin's stability but also contributes to the development of the ZeroLend Protocol.

Relevance of Collateral

The system of collateral backs the intrinsic value of ONEZ, ensuring it remains pegged to one U.S. Dollar. Borrowers are obligated to provide collateral at a stipulated ratio prior to receiving ONEZ. This collateral is a critical aspect of the ONEZ economy, providing a buffer that guarantees the coin's stability and security.

Functioning of the ZeroLend Protocol

The ZeroLend Protocol operates by circulating ONEZ in a self-sustaining cycle. Whenever borrowed positions are squared off or liquidation occurs, ONEZ is retracted from the circulation and restored back to the ZeroLend Protocol. This not only maintains a balanced supply of ONEZ but also ensures continuous liquidity in the market.