Zero Interest Lending Protocol

• 3A protocol is permissionless. This means there’s no approval process and everyone can use it “on demand”, whenever the liquidity is needed.
• There is no recurring interest. This means there’s no recurring capital cost associated with accessing liquidity.
• 3A protocol offers additional services, like automatic vault management, that keep the vaults safe and capital-efficient.
• The protocol is built with enterprise-level security in mind. 

Whitelisted tokens on the 3A platform could affect the protocol and its payment coin EURO3 at its core, so it is crucial to build a robust and systematic risk model.

Mandatory Requirements

There are three different aspects of risk categories which are critical in assessing whether a token would be allowed as a collateral on the 3A protocol:

• Fundamental
• Technical
• Market

Each individual risk category has a score that ranges from 0 to 100 and is calculated as a total sum of each evaluated sub-group. The risk category assessments are carried out by the 3A contributors using community templates and feedback and voted by the 3A DAO members. Each risk category must score a minimum of 50 to be considered by the 3A DAO.

While Fundamental and Technical Risk Scores are only used for whitelisting new tokens, the Market Risk Score has an additional function in deciding the Minimum Collateral Ratio (MCR) and Borrowing Capacity for each token.

The benefits include:

• No recurring interest
• No repayment schedules
• No credit checks or approvals
• No sell pressure on your token
• Access to liquidity without selling your digital assets
• 3A provides users with capital-efficient leverage on their assets, while also increasing TVL for protocols.