Risk Control
ZEROBASE carefully curates quantitative strategies and allocates assets across multiple diverse strategies to mitigate risk. We also leverage ZK Interval Proof technology to validate hedge fund investment strategies, ensuring the confidentiality of these strategies while providing their verifiability. Fund managers make Pedersen commitments for the weight and risk factors of each investment asset. They must define interval constraints for investment weights and portfolio risk limits. Using zero-knowledge interval proofs, fund managers demonstrate to ZEROBASE that the committed weights and risk levels comply with the predefined constraints [Github].
ZEROBASE Staking utilizes zero-knowledge proofs to evaluate the risk neutrality of arbitrage strategies. When strategies are risk-neutral, the progress bar appears blue; if risk neutrality is breached, it turns red. Proofs are generated by the ZEROBASE Prover Network and verified through zkVerify and Nebra.
Workflow
When users stake funds into the ZEROBASE vault contract, the funds are automatically transferred to a custodial account and allocated across various liquidity strategies. By collaborating with multiple liquidity funds, we maintain positions to earn funding rate returns from exchanges while simultaneously seizing other arbitrage opportunities in the market. Currently, ZEROBASE partners with four liquidity funds, leveraging advanced mechanisms such as quantitative analysis, portfolio balancing, and hedging. Funds are dynamically allocated based on performance to enhance network returns and reduce overall strategy risk. Users can also activate the USDe burning mode with a single click, converting stablecoins into USDe and staking them for arbitrage opportunities to boost returns.
How to check ZK risk neutral proof?
On the Staking product page, observe the proof progress bar, which will display the results of the last 30 verifications. When the verification result is risk neutral, the proof bar will be blue, and when it is non-risk-neutral, it will be red.
Further Examination
Open the ZEROBASE certification browser and click on the ZEROBASE Stake-related proof.
Check the verification results. If the result is ✔, this indicates that the verification is successful and the risk neutrality of the funding strategy is established.
