FAQs
What is MultiChainZ?
MultichainZ's lending protocol is a decentralized financial (DeFi) solution that enables users to borrow and lend various types of assets, including NFTs, real-world assets, cryptocurrencies, and even participate in Ethereum2.0 liquid staking. The protocol utilizes cross-chain capabilities and smart contracts to facilitate secure and transparent lending transactions.
Why MultiChainZ?
The protocol is entirely open source, enabling individuals to engage with it through various means such as a user interface client, API, or direct interaction with the smart contracts on the Ethereum network. This open source nature grants the flexibility to create third-party services or applications that can interact with the protocol, thereby enhancing your product.
How can I interact with MultiChainZ?
To interact with MultiChainz, you need to provide the asset and quantity you desire. Once you've supplied your assets, you will start earning passive income proportional to the borrowing demand in the market. Furthermore, by supplying assets, you gain the ability to borrow using your supplied assets as collateral. The interest you earn from supplying funds helps counterbalance the interest you accumulate from borrowing.
Is there a cost for interacting with MultiChainZ?
To interact with MultiChainz, transactions are necessary, and as a result, transaction fees for utilizing the any blockchain are incurred. These fees are determined by the current status of the network and the complexity of the transaction.
Which blockchains does Multichainz support?
Multichainz is designed to operate across multiple blockchains. We're always expanding our support, but currently, we operate on Ethereum, Base, Arbitrum, Optimism, Plume Network and zklink Nova. Stay tuned for announcements on further integrations
How are my supplied funds stored?
Your funds are held within a smart contract which is publicly accessible and transparent. The code of the smart contract is verified and audited by independent third-party auditors. You have the ability to withdraw your funds from the pool whenever you wish, giving you on-demand access to your assets.
Are there risks?
Every platform carries some level of risk, and the MultiChainz platform is no exception. The risks associated with MultiChainz include the possibility of smart contract bugs within the protocol code and the risk involved in the collateral liquidation process. However, significant efforts have been made to mitigate these risks. The protocol code has undergone thorough audits. Additionally, there are bug bounty programs to minimize contract risks.
What is the CHAINZ token?
The $CHAINZ token is used as the centre of gravity of MultiChainz protocol governance. Chainz token can be staked within the protocol Safety Module to provide security/insurance to the protocol/suppliers. Stakers earn staking rewards and fees from the protocol.
How does the lending protocol support NFT lending?
MultichainZ's lending protocol allows users to collateralize their NFT assets and borrow against them. By locking their NFTs as collateral, users can access liquidity in the form of cryptocurrencies or stablecoins, while still maintaining ownership of their NFTs. This opens up new possibilities for NFT holders to leverage their assets and access immediate funds without selling their NFTs.
Can real-world assets be used as collateral within the lending protocol?
Yes, MultichainZ's lending protocol supports the use of real-world assets as collateral. By leveraging blockchain-based tokenization, real-world assets such as real estate, art, or commodities can be represented as digital tokens. These tokens can then be used as collateral within the lending protocol, enabling users to unlock liquidity without selling their physical assets.
Can I both lend and borrow with Multichainz?
Yes! Whether you're looking to unlock the liquidity of your tokens by lending or aiming to borrow assets for diverse financial operations, Multichainz has you covered.
How do interest rates work on Multichainz?
Interest rates are determined based on supply and demand dynamics within each asset market. Our protocol is designed to ensure competitive and fair rates for both lenders and borrowers.
What happens if the value of my collateral drops?
If the value of the collateral drops significantly and breaches a specific threshold, it may be liquidated to cover the borrowed amount. We advise users to maintain a healthy collateral ratio to prevent liquidations.
How does Multichainz handle NFT valuations for lending?
Valuing NFTs can be complex due to their unique nature. Multichainz uses a combination of on-chain metrics, historical sales data, and decentralized appraisals to ensure a fair valuation for NFTs used as collateral.
Are there fees associated with using Multichainz?
We charge a minimal fee for using our services, which goes back into protocol development and rewards for our community. Exact fee structures can be found in our documentation.
Which cryptocurrencies are supported for lending and borrowing?
MultichainZ's lending protocol supports a wide range of cryptocurrencies, including but not limited to Ethereum (ETH), and various ERC-20 tokens. Users can utilize their crypto holdings as collateral and borrow against them in the form of stablecoins or other supported assets. The protocol aims to provide flexibility and inclusivity by accommodating different types of digital assets.
How does the protocol enable Ethereum2.0 liquid staking?
MultichainZ's lending protocol offers a unique feature that allows users to participate in Ethereum2.0 liquid staking. Users can stake their Ethereum2.0 (ETH2) tokens and receive staking rewards, while simultaneously accessing liquidity through loans against their staked assets. This innovative approach enables users to benefit from the potential rewards of staking while maintaining the flexibility to utilize their staked ETH2 tokens.
What are the benefits of using MultichainZ's lending protocol?
Using MultichainZ's lending protocol provides several benefits, including:
Access to liquidity without selling valuable assets like NFTs or real-world assets.
Diversification of financial strategies by utilizing a wide range of collateral options.
Transparent and secure transactions facilitated by smart contracts on a cross-chain protocol.
Seamless integration with other DeFi platforms and services within the MultichainZ ecosystem.
How is the security of the lending protocol ensured?
MultichainZ prioritizes security and implements robust measures to safeguard user funds and data. The lending protocol utilizes smart contracts that undergo rigorous testing and auditing to mitigate vulnerabilities. Additionally, MultichainZ employs encryption protocols, multi-factor authentication, and best security practices to protect user accounts and transactions.
Can developers and projects integrate with MultichainZ's lending protocol?
Yes, MultichainZ encourages developers and projects to integrate with the lending protocol. Through comprehensive API documentation, SDKs, and developer resources, MultichainZ provides support for seamless integration. Developers and projects can leverage the protocol's capabilities to enhance their own applications and offer innovative lending solutions to their users.
Additional Information and resources about MultiChainZ
Feel free to refer to the Whitepaper for a deeper dive into MultiChainz Protocol mechanisms.
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