Secured Finance Docs
HomeBlogGitHubCommunityStablecoin ↗Fixed Income ↗
  • Introduction
    • ⚜️About Secured Finance
    • 🎏Vision & Mission
    • 🌍Ecosystem Overview
    • 🏁Roadmap
      • Roadmap 2024
      • Roadmap 2023
    • 📚DeFi Starter Guide
      • 🔄DeFi vs CeFi
      • 👛Wallet Setup
      • ⛽Gas Fees
      • 🤝DApps
      • 🏦DEX
      • 📝Smart Contracts
      • 🪙Governance Tokens
      • 🏛️DAOs
  • USDFC Stablecoin
    • 📢Overview
    • 🧙Getting Started
      • ⛽Creating Your First Trove
      • 👛Minting USDFC Step-by-Step
      • 🤝Managing Collateral Effectively
      • 🏦Monitoring Your Position
      • 🏊Using the Stability Pool
      • 💸Redeeming USDFC
    • 🔦Core Mechanics
      • 🏗️System Overview
      • ✏️The Trove System
      • 💰Mint & Borrow
      • 🚰Liquidation
      • 💸Redemption
      • 🧀Protocol Fees
    • 🎓Advanced Topics
      • 🚨Recovery Mode
    • 📔Contracts and Security
    • ❓FAQs
  • Fixed-Rate Lending
    • 📢Overview
      • 📖White Paper
      • 🎓Concept Paper
    • 🧙‍♂️Getting Started
      • 💵Lending Assets
      • 🏦Borrowing Assets
      • 📈Managing Positions
      • 🎮Platform Guide
        • 💰Trading
          • 💲Supported Currencies
        • 📈Markets
        • 🐋Portfolio
        • Bridge
        • 🚀Points
        • 📣Campaign
    • 🔦Core Mechanics
      • 🧩Order Book System
        • 🆎Order Type
        • 🪃Order Life Cycle
          • 💫Case Study: Order Status & Transition
      • 📐Standardization
        • 💠Zero-Coupon Bonds
        • ⏳Fixed Maturity
      • 🏋️Collateralization
      • 🪙Tokenization
      • 🚰Liquidation
        • ⚖️Mark to Market
        • 👮‍♂️Liquidators
          • ✏️How Liquidation Works
        • 📋Liquidation Case Study
      • 🧀Protocol Fees
    • 🎓Advanced Topics
      • 📈APR vs APY
      • ➗ZC Bond Price to APR
      • 📉Discount Factor
      • 🏋️‍♀️ZC Bond Collateral
        • 🏍️ZC Collateral Case Study
      • 🧬Market Dynamics
        • ♻️Auto-Rolling
          • 💰Price Discovery for Auto-Rolling
        • 🗓️New Market Listing and Delisting
          • 🤝Itayose - Fair Price Discovery
      • 🛡️Safety Measures
        • 🚦Circuit Breaker
          • 🛑Price Range Limits
        • 🪄Base Price Adjustment
        • 🌎Emergency Global Settlement
      • ⛓️Orderbook Deep Dive
        • 🎡Orderbook Rotation
        • 🎋Red Black Tree
        • ⏯️Lazy Evaluation
        • ⏮️Genesis Value
        • 🔄Compound Factor
    • 📔Contracts and Security
    • ❓FAQs
  • Developer Portal
    • 🧑‍💻Introduction
    • 🔌API Reference
      • 📈Fixed-Rate Lending Subgraph
        • 🔍Query Examples
    • 📦SDK Reference
      • ⛽Fixed-Rate Lending SDK
      • 👛USDFC SDK
    • 🐛Bug Bounty
  • Community
    • 🤝Overview
    • 🏛️Governance
    • 🪙Tokenomics
      • 🔵Secured Finance Coin (SFC)
      • 🔶Secured Finance Points (SFP) v2
        • 🔶Secured Finance Points (SFP) v1
    • 🎗️Support & Contacts
  • Resources
    • 🖼️Media Kit
      • 🖼️Secured Finance Logo
      • 💲USDFC Logo
    • ⚖️Legal
      • 📜Terms of Use
      • 🔒Privacy Policy
      • ⚠️Risk Disclaimer
Powered by GitBook
On this page
  • Overview
  • How It Works
  • Token Withdrawal Flow
  • Token Deposit Flow
  • Token Types
  • Token Naming Conventions
  • Key Parameters
  • Examples
  • Example 1: Withdrawing a Lending Position as a ZC Token
  • Example 2: Depositing a ZC Token Back into the Protocol
  • Example 3: Using ZC Perpetual Tokens
  • Common Questions
  • What is the difference between ZC tokens and ZC perpetual tokens?
  • Can I trade ZC tokens on secondary markets?
  • What happens to my ZC token at maturity?
  • How do I add ZC tokens to my Metamask wallet?
  • Can I partially withdraw my lending position as a ZC token?
  • Related Resources

Was this helpful?

Edit on GitHub
Export as PDF
  1. Fixed-Rate Lending
  2. Core Mechanics

Tokenization

Understanding how Zero-Coupon Bonds can be tokenized as ERC20 tokens in the Fixed-Rate Lending Protocol

PreviousCollateralizationNextLiquidation

Last updated 1 month ago

Was this helpful?

Overview

Our protocol allows Zero Coupon Bonds (Lending positions) to be tokenized as ERC20 standard tokens, which is called ZCToken, and withdrawn from the platform. This tokenization enables greater flexibility for users, allowing them to transfer their lending positions to other wallets or potentially trade them on secondary markets.

How It Works

The tokenization process involves converting lending positions into standard ERC20 tokens that can be withdrawn from the platform and later redeposited if desired. There are two main flows in this process:

Token Withdrawal Flow

When a user wants to withdraw their lending position as a token:

Token Deposit Flow

When a user wants to deposit their ZC token back into the platform:

Token Types

Token Naming Conventions

ZC Token Names and Symbols (example as March 2024 expiry):

Asset
ZC Token Name
ZC Token Symbol
ZC Perpetual Token Name
ZC Perpetual Token Symbol

ETH

ZC ETH MAR2024

zcETH-2024-03

ZC ETH

zcETH

WBTC

ZC WBTC MAR2024

zcWBTC-2024-03

ZC WBTC

zcWBTC

USDC

ZC USDC MAR2024

zcUSDC-2024-03

ZC USDC

zcUSDC

axlFIL

ZC axlFIL MAR2024

zcaxlFIL-2024-03

ZC axlFIL

zcaxlFIL

Metamask Symbol Name Convention (max 11 chars, example as March 2024 expiry):

Asset
ZC Token Name
Metamask Symbol

ETH

ZC ETH MAR2024

zcETH24M

WBTC

ZC WBTC MAR2024

zcWBTC24M

USDC

ZC USDC MAR2024

zcUSDC24M

axlFIL

ZC axlFIL MAR2024

zcxFIL24M

FIL

ZC FIL MAR2024

zcFIL24M

Month abbreviations: MAR = M; JUN = J; SEP = S; DEC = D

Key Parameters

Parameter
Description
Value

Token Standard

The token standard used for ZC tokens

ERC20

Token Decimals

Number of decimal places supported by ZC tokens

18

Maturity Format

How maturity is represented in token names

MMMYYYY (e.g., MAR2024)

Symbol Format

Format for token symbols

zc[ASSET]-YYYY-MM

Metamask Symbol Format

Shortened format for Metamask display

zc[ASSET]YYM

Perpetual Token Maturity

Maturity value for perpetual tokens

0

Minting Source (ZC Tokens)

Contract that mints standard ZC tokens

FutureValueVault

Minting Source (Perpetual)

Contract that mints perpetual ZC tokens

GenesisValueVault

Examples

Example 1: Withdrawing a Lending Position as a ZC Token

Alice has lent 1,000 USDC in the JUN2025 market and wants to transfer this position to another wallet:

  1. Alice navigates to the "My Positions" section in the protocol interface

  2. She selects her 1,000 USDC lending position in the JUN2025 market

  3. She clicks "Withdraw as Token" and confirms the transaction

  4. The protocol mints a "ZC USDC JUN2025" token (zcUSDC-2025-06) to Alice's wallet

  5. The token represents Alice's right to receive 1,000 USDC plus interest at maturity

  6. Alice can now transfer this token to any other Ethereum wallet

Example 2: Depositing a ZC Token Back into the Protocol

Bob has received a "ZC ETH SEP2024" token from a friend and wants to manage it within the protocol:

  1. Bob navigates to the "Deposit" section in the protocol interface

  2. He selects the "Deposit ZC Token" option

  3. He selects his "ZC ETH SEP2024" token from his wallet

  4. He confirms the transaction

  5. The protocol burns the ZC token and credits Bob's account with the corresponding lending position

  6. Bob can now view and manage this position within the protocol interface

Example 3: Using ZC Perpetual Tokens

Charlie wants to create a more flexible lending position that isn't tied to a specific maturity:

  1. Charlie deposits 5 ETH into the GenesisValueVault

  2. The protocol mints "ZC ETH" perpetual tokens (zcETH) to Charlie's wallet

  3. These tokens represent a standardized lending position without a fixed maturity date

  4. Charlie can transfer these tokens to other users or use them in other DeFi protocols

  5. When Charlie wants to redeem the underlying value, he can deposit the tokens back into the GenesisValueVault

Common Questions

What is the difference between ZC tokens and ZC perpetual tokens?

ZC tokens have a specific maturity date (e.g., ZC ETH MAR2024) and represent a lending position that will mature on that date. ZC perpetual tokens (e.g., ZC ETH) do not have a specific maturity date and represent a standardized lending position that can be redeemed at any time. ZC tokens are minted from the FutureValueVault, while ZC perpetual tokens are minted from the GenesisValueVault.

Can I trade ZC tokens on secondary markets?

Yes, ZC tokens are standard ERC20 tokens that can be transferred to any Ethereum wallet and potentially traded on secondary markets or used in other DeFi protocols. However, the liquidity of these tokens on secondary markets may vary depending on market conditions and the specific token.

What happens to my ZC token at maturity?

When a ZC token reaches its maturity date, it can be redeemed for the underlying asset plus any accrued interest. The protocol will handle the redemption process when you deposit the token back into the platform. Alternatively, if you participate in Auto-Rolling, your position can be automatically rolled over to a new maturity.

How do I add ZC tokens to my Metamask wallet?

ZC tokens should appear automatically in your Metamask wallet after they are minted. However, if they don't appear, you can add them manually:

  1. Click "Import tokens" in Metamask

  2. Enter the token contract address (available from the protocol interface)

  3. The token symbol and decimals should auto-populate

  4. Click "Add Custom Token"

Note that Metamask has a character limit for token symbols, so the symbols may appear slightly different (e.g., "zcETH24M" instead of "zcETH-2024-03").

Can I partially withdraw my lending position as a ZC token?

Yes, you can withdraw any portion of your lending position as a ZC token. The protocol will mint tokens representing the exact amount you choose to withdraw, and the remaining portion will stay in your account within the protocol.

Related Resources

Each ZC token has a maturity, but if the maturity is 0, it becomes a ZC perpetual token. Generally ZC tokens are minted from FutureValueVault but ZC perpetual tokens are minted from GenesisValueVault. Please check the for the reference.

🔦
🪙
Genesis Value page
Standardization
Zero-Coupon Bonds
Order Book System
Genesis Value
Auto-Rolling
ZC Token Minting Process
ZC Token Burning Process