How It Works
Z Lend uses the same RelayAdapter pattern as Z Trade. Deposit and borrow operations can be executed from the ShieldedPool (MASP) through stealth addresses, keeping the borrower’s identity unlinkable. The entire sequence (unshield, deposit or borrow, reshield) executes in one atomic transaction.Revenue Model
Z Lend generates protocol revenue through a reserve factor on borrow interest, following the Aave model. Depositors earn the majority of interest paid by borrowers. The protocol captures a percentage of the spread.Health Factor and Liquidation
Z Lend follows standard Aave-style health factor mechanics. If your collateral value drops relative to your borrowed amount, a liquidator can repay part of your debt in exchange for your collateral at a discount. Risk: If your collateral value drops significantly, your health factor may fall below 1.0 and your position may be partially liquidated. Monitor your health factor and add collateral or repay as needed.Sample Use Case
A possible Z Lend flow:- Deposit collateral on Z Lend
- Borrow USDZ against it
- Use USDZ for other purposes (deposit into yUSDZ, trade on Z Trade, transfer privately)
- All positions can be shielded in the ShieldedPool.