zHaus is an on-chain, programmatically managed, digital reserve currency.
Deployed as a program on Solana, zHaus is an on-chain, programmatically managed, digital reserve currency. This protocol accepts deposits of SOL and returns a Bond token (zBond) and an NFT with the characteristics of an Option Contract. This option allows you to convert your zBond into zHaus, the protocol token denoting ownership to the underlying SOL in the treasury.
The growth initial strategies are centered around lending the treasury and providing liquidity to ecosystem tokens with insufficient liquidity to grow the treasury. Initially, we will be providing LP to the protocol tokens and acquiring investment in / providing liquidity in other ecosystem tokens.
The strategies and operations are entirely permissionless, and on-chain, with actions or functions only being triggered in an automated fashion, by way of a crank, or the administrating teams' multi-sig wallet.
How it works:
Token Mechanics
Inspired by Michael Saylor and MicroStrategy, the protocol has three types of tokens:
a convertible note token which matures over X years at a rate of Y%
an NFT that depositors get which operates as an option to purchase the protocol token using convertible note tokens
a protocol token denoting direct ownership to assets in the treasury
A user deposits SOL or USDC, they:
receive a token denoting a convertible note (CN) and an NFT
The convertible note can be:
held to maturity wherein the holder can receive their initial deposit + X%
or
it can be paired with the NFT option below to convert to the protocols token
The protocol token denotes direct value held in the treasury, its directly correlated to the Net Asset Value of the portfolio. This means it has direct backing and is directly correlated to a portion of the protocol treasury.
Investment Strategy and treasury growth
The protocol treasury is deployed into ecosystem lending protocols (money markets) and put to work providing liquidity in LP pools for the CN / Protocol token and other tokens of interest.
All actions positions are transparently managed by the program, requiring no admin to hold custody of funds through management. By combining these two strategies, we believe that zHAUS has a significant opportunity to scale and increase market efficiency on-chain.
Money Market Operations
On-Chain money markets are important and valuable to the efficiency of the on-chain markets. The disparity in rates between these money markets indicates there isn't an efficient distribution of these assets between the varying lending platforms.
What does this mean?
An opportunity presents itself to make risk-free returns with a large enough capital base and that is what zHAUS seeks to automate. The lending and borrowing operations on-chain will be the result of monitoring these markets and allocating capital to efficiently maintain rates between them.
At initial launch, we will be lending on LoopScale with plans to integrate other markets.
LP Provisioning
Low liquidity in times of high demand leads to high volatility.
zHAUS provides liquidity to assets it carries on its books to help provide a more efficient market in exchange for the fees collected. As the protocol grows, value will be divested out of SOL and into ecosystem tokens to help make the markets, both lending and swapping, more efficient.
At initial launch, the protocol will be providing LP to protocol tokens on Orca.
Governance
ZephyrHaus is a community managed digital reserve currency, meaning its community has some input in how it operates. Certain pieces of the protocol are managed by the team to insure stability and growth, but governance over certain issues will be handled by MetaDao post initial launch.
Governance allows for protocol token holders to participate in some of the decisions of how the fund operates its strategy. This includes, but is not limited to:
Contributing input on tokens the should provide LP
Leveraging or Deleveraging the fund by borrowing against the collateral we lend on-chain
Acquiring assets that are not currently part of the funds portfolio
Modifying portfolio weights
New strategies the fund should deploy
Allocating or deallocating funds to the development of new strategies
The token in our protocol design which gives the ability for a holder to contribute is the protocol token. Convertible note tokens do not denote ownership over the underlying assets in the treasury and thus will be ineligible for participation in governance.
More information to come near the submission time of the Colosseum Breakout hackathon.
