Introduction

ZeroLiquid is a decentralized, non-liquidation, interest-free, self-repaying loans protocol that enables users to obtain loans against Liquid Staking Derivative (LSD) collateral.

When a user deposits LSD tokens in the protocol, they can then borrow ZeroLiquid's synthetic Ether token (zETH), which can be traded on the market to provide instant liquidity. Users do not need to worry about making repayments, as loans are automatically repaid over time using the staking rewards earned by the collateral. Users can also early unstake by paying back the remaining loan. The ZeroLiquid protocol offers a flexible line of credit that enables users to obtain loans from their yield-generating collateral without having to sell their assets.

Unlike traditional lending platforms, users can freely enter and exit positions without committing to lockup periods. Moreover, the platform ensures that a user's collateral will never be liquidated unless they choose to do so.