Flux Protocol
4 min readMay 15, 2021


Flux V2 Is on The Horizon: Could This be the End of the Over-Collateralization Era?

Development Progress of Flux Protocol

It has been three months since Flux was launched initially. During the past three months, Flux has been deployed on four different chains, namely, Conflux, Heco, BSC, and OKExChain(OEC), signifying the completion of the basic overall deployment. Up to May 15, 2021 (UTC+8), the Flux Protocol TVL on all four chains combined has exceeded $1 billion. In the meantime, after spending a whole year on loan contract independent research and development, the Zero One team has also come up with its own technology development path. That is, to advance the product by focusing on loan services demands.

In addition, Flux will test the new UI design next week under the voting governance, and the final design will be based on users’ votes. Which one do you like better? The new style below, or the current style (see flux.01.finance)?

Could this be the New Flux UI?

The Future Roadmap for Flux Protocol Development

Flux V2 — the leveraged lending, will soon be launched. Looking back in history, thanks to MakerDAO’s CDP Protocol, which has started the DeFi collateral era, the blockchain ecology now enjoys a new path of development. Since loans are naturally highly coupled with leverage and futures, one manifestation is that pledging will take place to lock in the value. The pledged assets can be used as margin, and then several times of the value of assets can be borrowed for farming and trading.

Take Flux V2 as an example. Our current version has completed the development of the smart contract for leveraged farming. Originally, Flux V2 was also about to include leveraged trading. However, in fact, the essence of leveraged trading is futures. As it’s known to all, the future trading is heavily relying on the collaterals to provide margin, which could eventually restrict the trading depth. Therefore, the Zero One team will also soon launch Vigoss as the complemented product for Flux V2 after R&D of more than half a year.

As a result, the leveraged lending of Flux V2 would be used to deepen the liquidity depth for the futures trading. More details of Vigoss will be introduced in the future. Stay tuned!

As one of the lending protocols with the largest number of chain deployments in the DeFi field, we will jointly develop new cross-chain protocols with other public chains like Conflux and Near in Flux V3. In fact, it’s one of the major issues in the DeFi industry that all of the current bridge tools on the market are bridging the account address to account address, in which the contract address bridging to another contract address remains unresolved.

Flux V3 Inter-”Bank” Transaction

In Flux V3, the users will be able to perform cross-chain deposit and withdrawal within the Flux platform. For example, you could deposit on BSC Flux and withdraw from Heco Flux. Also, to minimize the APY discrepancies among four different public chains, the supplied money within the smart contracts will be bridged to Flux’s supply pools on other chains, which will make the liquidity among various chains to be distributed in a systematic manner.

To think even further, there could be products even beyond Yearn, which means Flux V3 would actually be the fusion of a lending platform and a smart pool, which enables leveraging the deposits and loans onto other composite DeFi products with high yields among various blockchains under a single DeFi platform.

The Utility of $FLUX Token

Flux never reconciles to mediocrity. Moreover, we hope to develop a route with our unique technical characteristics.

In the future, there will be multiple paid services under Flux V2, V3, and V4, and all of which will need to be paid in $FLUX tokens. But how did we come up with this design?

As already shown with countless examples by the P2P lending within the traditional financial market, the core advantage of a P2P product is not the match between the capital end and the asset end, but the service of the capital end and the asset end. Therefore, it should be the purpose of Flux to provide users with a better loan and deposit services, with more advanced technology as the bottom layer.

With that being said, there will be many scenarios where Flux can provide users with different services. That is where $FLUX Token comes into play.

For example, under V3, $FLUX tokens will be consumed to use our cross-chain withdrawal service; under V2, it could be used to pay in $FLUX to borrow with a leverage beyond 10x; under V3, to deposit into a higher-yield pool needs to be in exchange with $FLUX…

In closing thoughts, it will be a long trip, but surly an exciting one, and I sincerely hope that Flux users are willing to accompany us, the Zero One team, to grow and ride this trip. Together, we shall witness the rise of a great lending product!



Flux Protocol

Flux Protocol is a borderless lending protocol, where low transaction fees and cross-chain interoperability are the reality