Shezmu is a decentralized finance (DeFi) protocol that implements cross-chain routing and elastic-supply mechanisms, prioritizing innovation and efficiency. It aims to redefine how rewards are maximized for its community members while streamlining project access and minimizing hassles and costs within the DeFi landscape. ^[1]

Overview

Shezmu operates as a cross-chain router exchange and elastic-supply protocol. It prioritizes innovation and efficiency to redefine how rewards are maximized for its community members. Through features like fiat on-ramping, multi-chain swaps, and batched Guardian creation, users can enter the ecosystem and save on gas fees and time. By burning Shezmu tokens to acquire Guardian NFTs, participants contribute to the protocol's deflationary mechanism, enhancing scarcity and adding value to each Guardian's role. Additionally, participants receive rewards in Shezmu tokens. ^[2][3]

Products

Oasis

Introduced on January 29th, 2024, Oasis is a hybrid collateralized lending platform. It aims to bridge the liquidity gap between DeFi and the NFT market by allowing users to leverage ShezETH/ShezUSD curve pools against ERC-721 and ERC-1155 assets. Unlike traditional DeFi loans, Oasis supports various digital assets as collateral, including NFTs, LSTs, LRTs, and ERC-20 tokens. ^[14]

Users can borrow ShezETH and ShezUSD against collateral, with flexibility in asset allocation, though they must monitor loan health due to fluctuating collateral values. Liquidations are automated, with NFTs auctioned to cover defaulted loans and liquidation bots handling other assets. The platform will gradually introduce additional collateral options and ShezETH as liquidity scales. Asset collections are assigned Loan-to-Value (LTV) rates and Liquidation Thresholds (LQ) based on factors such as volume, price volatility, asset history, and distribution, categorized by a proprietary risk management algorithm. ^[4]

The Nile

The Nile addresses a common inconvenience in DeFi by simplifying the process of acquiring assets to participate in projects. Traditionally, users had to purchase Ethereum or stablecoins before swapping for project tokens, which was time-consuming and incurred additional fees. With Shezmu's Nile integration, powered by Squid Router and Ondefy by Transak, users can seamlessly enter the Shezmu ecosystem without off-chain steps. This integration streamlines the purchasing process for Shezmu tokens. ^[5]

Agora

Shezmu’s Agora offers a different approach than traditional bond-like instruments in DeFi, aiming to avoid inflationary pressures. Instead of paying interest, Shezmu tokens are sold below market value at a discount. Users are credited the full market value after a lock-up period. Purchasing at a discount can result in higher returns due to percentage changes. Users can burn pending rewards for Guardian NFTs during the lock-up period, earning additional tokens/USDC. ^[6]

Rewards from Guardians accrue at a 50% rate during this period, with the other 50% directed towards the treasury. Accrued rewards are claimable at the end of the lock-up period, and Guardian NFTs begin accruing rewards at a 100% rate. ^[6]

Obelisk

Obelisks serve as a limited-quantity reward enhancement tool for Shezmu Guardian holders, amplifying participant token rewards. Users can obtain an Obelisk by investing Shezmu tokens and Ethereum, with the allocation depending on their chosen tier. The performance boosts of Obelisks are categorized into three options, each with its mint price, reward boost, and available minting cap. ^[7]

• Granite: Granite is designed for users exploring Obelisk's potential or those preferring smaller allocations. It offers a 12.5% reward boost over primary Guardian emissions. Minting a Granite requires 0.25 ETH plus 50 Shezmu tokens, with 2500 Granites available.
• Limestone: Limestone serves as the mid-tier Obelisk, offering a balance of affordability and reward-boosting capability. It provides a 25% boost over primary Guardian emissions. Minting a Limestone requires 0.50 ETH plus 100 Shezmu tokens, with 2600 Limestones available.
• Basalt: Basalt represents the top-tier Obelisk tailored for high rollers aiming to maximize Guardian reward boosting. It provides a substantial 50% boost over primary Guardian emissions. Minting a Basalt requires 1.0 ETH plus 200 Shezmu tokens, with only 200 Basalts available.

Guardian NFTs

Guardian NFTs within the Shezmu Protocol enable trading on any NFT marketplace, with Shezmu tokens burned simultaneously during transactions. The Shezmu team has introduced lockout-free trading to address concerns regarding lockout periods, enabling immediate sales of minted Guardians at fair market value. This eliminates issues where users were trapped in positions without liquidity, safeguarding trading freedom. The Shezmu team prioritizes empowering community members to manage their assets according to their risk preferences, effectively mitigating unfair risks linked to lockout periods. ^[8][9]

These Guardian NFTs are categorized into six tiers, each providing distinct rewards and priced accordingly. Notably, one Guardian is equivalent to twelve Shezmu tokens. The tiers are as follows: ^[8][9]

• Craftsman: minted for one Guardian
• Scribe: minted for five Guardians
• High Priest: minted for ten Guardians
• Noble: minted for twenty-five Guardians
• Vizier: minted for fifty Guardians
• Pharaoh: minted for one hundred Guardians

While there are no monthly fees for Guardian NFTs, a $15 Creation Fee Total applies, irrespective of the number of NFTs created per transaction. Moreover, Guardian NFTs inherit unique functionalities from the Protocol’s Internal Guardian Creation, facilitating automatic compounding for higher-tier NFTs and partial liquidations. Owners also receive daily compounding Shezmu-based rewards and USDC allowances. ^[8][9]

Rewards

Guardian NFT holders receive a USDC allowance as a reward for community participation. The allowance is funded from part of the sell tax and evenly distributed among all Guardian owners. As transaction activity on the Shezmu Protocol increases, these allowances are expected to grow, providing an additional incentive for active community members. ^[10]

Unlike typical DeFi platforms where claiming rewards involves multiple transactions and fees, Shezmu allows users to claim all rewards earned in a single transaction, reducing gas fees. Moreover, users can compound rewards into minting Guardian NFTs without claiming them first, as the Treasury tracks unclaimed rewards. This unique feature enables users to immediately reap the benefits of owning Guardian NFTs. ^[10]

Shezmu Token

Tokenomics

Initially, Shezmu launched with a total supply of 10,000,000 tokens, with 75 Ethereum contributed during a public presale round. This presale aimed to provide early access to the Shezmu protocol for its early adopters and community founders, acknowledging their commitment and patience. Additionally, it helped stabilize the token's launch by avoiding initial liquidity issues and potential volatility. However, to address concerns about inflation, the Shezmu Development Team decided to burn approximately 95% of the total supply immediately upon launch. This action aimed to prevent long-term hyperinflation risks commonly observed in similar projects due to aggressive token rewards without adequate controls. As a result, the circulating supply was reduced to 500,000 Shezmu tokens. ^[11]

Both ShezUSD and ShezETH were listed on CoinGecko on August 5, 2024. ^[13][14]

Taxes

The tax system aims to minimize unnecessary taxation while identifying crucial taxes. Initially, there will be no Buy Tax to encourage buying and support protocol adopters. When Shezmu launched, there was a 6% sell tax, which the Shezmu Treasury adjusted based on contemporary circumstances. However, the sell tax was at most 6%, and the goal was to decrease it over time to incentivize community longevity gradually. ^[12]

A portion of the sales tax is allocated to fortify liquidity in the pool, ensuring a stable trading environment. Another portion is distributed in USDC to Guardians, incentivizing their ongoing commitment to the network. Some sales tax is used for buyback and burn mechanisms to enhance scarcity and long-term value. Lastly, strategic marketing initiatives are funded through a separate allocation to increase awareness and attract new participants to the Shezmu ecosystem. ^[12]