What is Ion Protocol?

A brief introduction to Ion.


Ion Protocol is a price-agnostic lending platform that leverages provable validator-backed data to allow users to borrow ETH against their LSTs and re-staking positions.
  • All loan positions in Ion are price-agnostic, and their parameters (interest rates, LTVs, position health, etc.) are determined by consensus layer data and secured with ZK data systems.
  • This means liquidations are triggered by changes in consensus layer state, not by price oracles.
  • This verifiable Proof-of-Reserve system is enabled by a network of oracles running our ZKML (zero-knowledge machine learning) framework which enables trustless verification of consensus layer state and validator credit ratings.

Core Lending Architecture

Users in Ion can deposit any combination of the following collateral types into the protocol's lending markets.
  1. 1.
  2. 2.
    LST LP Positions
  3. 3.
    Re-staking Positions
  4. 4.
    Liquid Re-staking Positions (LRTs)
  5. 5.
    Staked LST LP Positions (e.g. Aura Finance’s ERC-4626 positions)
  6. 6.
    LST Index Products (e.g., IndexCoop’s dsETH, UnshETH and more)
Depositors are able to borrow ETH to use in the greater DeFi ecosystem or to compound their staking yield.
By participating in these ETH loans, users can leverage, hedge, and perform a variety of financial strategies with their staked and re-staked assets.
Ion enables participants in the Ethereum staking and re-staking ecosystem to experience a more mature financial ecosystem without compromising on trust, capital efficiency, or security.