To start with, Nazca.money has officially entered the Blast Big Bang competition as a lending project. Our collaboration with Blast is set to redefine the landscape of decentralized finance. 👏🏻👏🏻👏🏻
At the heart of Nazca.money is our pioneering, decentralized, non-custodial, algorithmic money market protocol, crafted atop Blast’s Layer 2 technology. With the integration of Blast’s native yield mechanisms, we proudly unveil the “Adaptive Equilibrium Interest Rate Model” (AEIRM). This innovative model guarantees a market that balances efficiency and solvency, a testament to the power of Blast’s native yield mechanisms.
Addressing DeFi’s core challenges
The landscape of lending platforms is riddled with inefficiencies — some suffer from poor capital utilization, affecting lender returns, while others face risks of overutilization, threatening liquidity and solvency. Nazca.money tackles these challenges head-on. Through AEIRM, we dynamically optimize yields, fostering a symbiotic relationship between borrowers and suppliers.
Nazca + Blast = 💥
Utilizing Blast’s state-of-the-art blockchain and Ethereum Layer 2 solutions, Nazca.money introduces a rebase mechanism to recalibrate demand and supply curves continuously. Our approach not only ensures financial stability but also heralds an era of zero-interest borrowing and assured returns for suppliers, targeting a utilization rate of 40%-80% for unparalleled efficiency.
“Everything lives by movement, everything is maintained by equilibrium, and harmony results from the analogy of contraries; this law is the form of forms.”
-Eliphas Levi
AEIRM in a Glance
The essence of Nazca’s philosophy, all lies in equilibrium…
Arbitrage Zone
In the Arbitrage Zone, the borrower’s interest rate is strategically set lower than the supply rate, or even at 0%, as a direct result of compensation from Blast native yield. The design of this zone encourages arbitrageurs to engage in a borrowing-and-supplying loop, leveraging the low borrowing costs to earn higher returns.
Equilibrium Zone (The Expected Norm)
This zone is where the market is expected to stabilize by design. It represents a balanced state of supply and borrow demands, with a gradual rise in interest rates for both parties. Once the arbitrage opportunities diminish, the market enters the Equilibrium Zone. In this phase, there’s a balance between supply and borrow demand. This zone represents a stable market state where the incentives for arbitrage are reduced, and the market is primarily driven by genuine supply and borrow dynamics. Nazca’s goal is to maintain this zone as the standard operating condition, ensuring steady yields and a healthy, sustainable market environment.
Jump Zone
In scenarios where market solvency is at risk (due to high utilization), the protocol shifts its strategy. In the Jump Zone, all native yield generated is directed towards suppliers, with none allocated to borrowers. This shift is designed to quickly recalibrate the market by encouraging new supplies and curbing excessive borrowing. This zone acts as a critical safety measure, ensuring the protocol’s stability and solvency during market stress conditions.
Security at the forefront
Grounded in the audited and battle-tested framework of Compound V2, our platform prioritizes security. Ahead of our launch, we’ve scheduled a comprehensive audit with a renowned security firm to ensure the utmost safety for our users.
What’s next?
The path ahead is filled with milestones: Testnet Campaign, Reward Program, Mainnet Launch, ve8020 Tokenomics, and the Blast Hub. We are dedicated to bringing exciting features to our community and users in the lead-up to our launch. Join our community and be part of this transformative movement.
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About Nazca
Nazca, a decentralized money market on Blast L2, harnesses a novel interest rate model (Adaptive Equilibrium Interest Rate Model) leveraging Blast's native yield for optimal supply and borrow equilibrium.
Team: Nazca team is composed of 11 crypto enthusiasts and seasoned entrepreneurs. Our collective experience spans renowned DeFi projects on Avalanche, NEAR Aurora, and zkSync, with each project reaching over $20M in TVL at peak performance.