On 5 December 2024, Zeru had its first community call! This gave zerus an opportunity to send questions in for the core team to answer, and to share some information about Zeru’s roadmap into 2025. Will there be NFTs? When will the mainnet launch? All that and more was covered. Below is a detailed outline of the call notes.
Founding and Initial Focus
Zeru was founded with a vision to solve for under-collateralized lending in the DeFi space. The development of their solution led to the realization of the need for a robust credit layer, resulting in the creation of zScore. zScore was originally intended for internal use in their money markets application, but its potential as a standalone product became apparent with the launch of EigenLayer. The team saw an opportunity to create a decentralized, AI-powered credit scoring system that could serve the entire DeFi ecosystem.
Advancements in AI and Data Processing
Recent advancements in AI enabled the use of neural networks, which are typically employed in language translation models, to process vast amounts of DeFi data from various sources. This comprehensive approach resulted in a more robust and relevant credit scoring system for the DeFi industry.
Mission and Vision
Zeru's mission is to fuel the growth of the omnichain economy by building a robust, adaptive, and dynamic credit layer. The team aims to add at least $45 billion to the on-chain economy, potentially doubling the size of DeFi. Their vision involves several steps, including launching products on mainnet after thorough auditing, and helping DeFi protocols leverage zScore to enhance their services.
Key Features of Zeru
zScore is a multidimensional, flexible, adaptive, and dynamic credit scoring system, unlike traditional unidimensional credit scores. It is built as an EigenLayer AVS, ensuring inherent decentralization. zScore was developed as a LayerZero OApp, allowing scores to be read across 30 different blockchains. The system utilizes advanced AI algorithms and unique clustering approaches for calculating credit scores. It was designed by a team with extensive DeFi and AI development experience, ensuring the system's applicability to the sector. zScore offers better capital efficiency compared to overcollateralized lending protocols. The system aims to make leveraged DeFi strategies accessible to a broader audience, including users in emerging markets. It focuses on providing responsible leverage options to prevent rapid liquidations.
Recent Progress
The team launched publicly during Token2049 in Dubai in April 2024.. They deployed the first version of money markets on Base Sepolia testnet in July. An incentivized testnet program called 'Zubbles' was launched in October on Berachain bArtio testnet. The architecture for the AVS (Actively Validated Service) was completed in October. myzscore.ai was launched during DevCon VI in Bangkok. The team expanded, including hiring a head of AI based in the US. Automated AI strategies for DeFi applications were developed.
Near Future Objectives
In Q1 2025, there will be a Token Generation Event (TGE). zScore will launch on mainnet in Q1 2025, including onboarding operators to ensure decentralization. The first set of partnerships and integrations will be announced in Q1 2025. In April 2025, the Money Markets application will launch on mainnet. Strategies like Aerodrome and protocols such as EtherFi, Renzo, and potentially Aave will be integrated. One-click AI-powered yield strategies with leverage will be implemented. The incentivized testnet will expand to Base and Arbitrum networks. The team will continue refining AI models and expanding partnerships across the DeFi ecosystem.
Security and Privacy Measures
The system inherits security from EigenLayer and Ethereum for the core infrastructure. Plans are in place to engage top-tier auditors for smart contract audits. Insurance pools will be implemented to manage defaults without impacting other Zeru users. Various checks and balances will be utilized, including monitoring of health factors. User privacy will be maintained by not requiring identity verification. zkTLS will be integrated to allow users to bring real-world credit scores on-chain while preserving privacy.
Launch on Berachain
Berachain was chosen due to its innovative Proof of Liquidity concept and efforts to disrupt traditional DeFi models. The team is actively working with various ecosystem partners, including integrating DeFi strategies through Kodiak. The Zeru token is tradable on BEX’s testnet dApp today. BERA tokens and others like HONEY and NECT are accepted as collateral assets. Collaboration is ongoing with core Berachain contributors and other projects in the ecosystem.
Integration Approach
The integration approach is often permissionless, allowing for seamless interaction with other protocols without formal partnerships. This enables rapid expansion and flexibility in supporting various DeFi ecosystems. Thanks to everyone who participated by submitting a question, listening live, and chatting in Discord during the call. Look out for further opportunities to earn more Zubbles on Base Sepolia and Arbitrum Sepolia, take advantage of the ZERU faucet on Berachain bArtio, and please provide your feedback in our Discord community.