ZeroLend Official is the largest native lending protocol on zkSync, designed to provide efficient and secure money markets. This guide provides a technical walkthrough of How to use ZeroLend for supplying assets to earn yield and borrowing against your collateral on zkSync DeFi Lending.
Core Concept: Isolated Lending Pools & LST Collateral
ZeroLend uses an isolated lending pool architecture, meaning each market (e.g., ETH, USDC) has its own risk parameters. It also supports various Liquid Staking Tokens (ZeroLend LST Collateral) as collateral, allowing users to earn staking yield while leveraging their assets.
Step 1: Supplying Assets (Lending)
Connect to zkSync Era: Ensure your Web3 wallet is connected to the zkSync Era network. ZeroLend's interface will guide you if you're not already connected.
Select Asset: On the ZeroLend dApp, navigate to the "Supply" section and choose the asset you wish to lend (e.g., USDC, ETH, or a supported LST).
Enable Collateral (Optional but Recommended): If you intend to borrow against your supplied asset, ensure you enable it as collateral. This usually requires a separate transaction approval.
Supply: Enter the amount to supply and confirm the transaction. Your assets are now earning yield from borrowers.
Step 2: Borrowing Assets
Once you have supplied assets and enabled them as collateral, you can borrow.
Select Asset to Borrow: Go to the "Borrow" section and choose an asset (e.g., USDC).
Monitor Health Factor: Pay close attention to your "Health Factor." This metric indicates the safety of your loan. A Health Factor of 1 means your collateral value equals your borrowed value. Below 1 is unsafe and can lead to ZeroLend Liquidations.
Borrow: Enter the amount you wish to borrow and confirm the transaction.
By actively monitoring your Health Factor and collateral value, you can safely leverage your assets. The ZeroLend Points Program also rewards active participation in lending and borrowing.
For a full breakdown of the risk parameters, supported assets, and the ZeroLend Security Audit reports, please refer to https://sites.google.com/verified-web3-portal.com/zerolend/.
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