The Financial Structure
Only for researchers...
Below is a diagram that illustrates the structure of Maze system containing several financial terms from the bond markets.
The Structure of Maze Protocol

List of Terms

    Core Protocol The core protocol consists of a group of smart contracts which define asset pools, PSB procedures and risk management policies. It is an automated counter-party serving both the demand side and the supply side on PSB issuance and investment.
    PSB Perpetual Smart Bonds, token assets with the perpetual nature, are generated by smart contracts to define the relationship between the protocol and the clients.
    Strip Bonds Strip bonds are a type of PSB issued via the smart contract when clients provide assets to the core protocol. The bonds will automatically generate MAZE as interest to the creditors. A standard definition of strip bonds in legacy finance: https://www.investopedia.com/terms/s/stripbond.asp
    Zero-coupon Bonds Zero-coupon bonds are a type of PSB issued via the smart contract when the loans are initiated by the debtors. The protocol collects the differential values between the issuing price and the face value of the bonds. A standard definition of zero-coupon bonds in legacy finance: https://www.investopedia.com/terms/z/zero-couponbond.asp
    Accounts The accounts are owned by the clients of the core protocol who are likely to be individuals, institutions or external smart contracts, etc.
    MAZE MAZE is the native token of the core protocol. It plays the role of the Interest-Rate Pricing Instrument of the money market. This is a liquid asset to replace and unify the legacy interest models.
    rMAZE When clients send MAZE into WMP Reserve Pool they will get rMAZE in return which locates the residue of the MAZE strip bond. This is a token representing various functions on the protocol.
    SHR Algorithm The Stratified Harvest Regulating (SHR) algorithm is the consensus mechanism of MAZE emission. It automatically controls the allocation of MAZE in respective asset pools.
    Farmbase Thread The Farmbase Thread is a transparent computation protocol to separate the massive income calculation workload from the layer-1 blockchains. The SHR algorithm is implemented on this middleware to control the allocation of MAZE to respective asset pools.
    Price Feed This is an oracle service to fetch price data of assets from the exchanges to the Farmbase Thread periodically, which is needed by the SHR algorithm.
    Forge The Forge is a group of smart contracts in the protocol which accepts MAZE as a reserve and mints ZUSD, the stablecoin pegged to 1 US dollar.
    Borrow Fee Module The Borrow Fee Rate model programmatically sets and charges the differential values between the issuing price and the face value of each zero-coupon bond based on the occupation ratio of the asset pool.
    Membership Module An account must lock a certain amount of rMAZE in order to obtain the membership to use the loan service. If the account has debts, the rMAZE cannot be unlocked.
    Liquidation Module When an account’s collateral value is close to the debt value, the account is likely to be liquidated. The insurance fund will actively monitor and proceed the liquidation tasks to prevent the protocol from insolvency.
    Revenue Module The protocol annually distributes the gains accumulated in the treasury. The accounts which hold rMAZE for a certain length have the rights to claim the revenue. The share is determined based on ‘rMAZE days-destroyed’.
    Governance Module The accounts can use rMAZE as the voting rights to take part in the protocol governance. The MAZE Improvement Proposals (MIPs) are the common way to decide the changes of the project, topics including parameter adjustments, algorithm upgrades, economics and protocol developments, etc.
Last modified 3mo ago
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