How Does Project 0 Work?

Lending|Risk B-|5 mechanisms|4 interactions

Project 0 is a DeFi prime broker on Solana that lets you borrow against your entire portfolio, even if your assets are spread across different lending and trading platforms (Kamino, Drift, Jupiter). Instead of managing separate collateral on each platform, Project 0 treats everything as one account — making your capital more efficient.

TVL

$46M

Sector

Lending

Risk Grade

B-

Value Grade

D-

Core Mechanisms

Lending/Unified-Margin

Novel

Multi-venue unified margin: borrow against entire portfolio across Kamino, Drift, and Jupiter

Project 0 is the first generalized, on-chain, permissionless, multi-venue unified margin protocol. Users can borrow against positions across multiple DeFi protocols from a single margin account. This is novel — no other Solana protocol unifies margin across independent venues.

Lending/Prime-Broker

Novel

DeFi-native prime broker: cross-venue risk management and capital efficiency

Modeled on traditional finance prime brokerage but fully on-chain. Allows positions at Kamino, Drift, and Jupiter to count toward a unified collateral pool.

Integration/Multi-Protocol

Integrations with Kamino Finance, Drift Protocol, and Jupiter Exchange

Deep integrations with the three largest Solana DeFi protocols. 70% of Solana lending TVL accessible through Project 0's unified interface.

Incentive/Points-System

Points-based rewards with marginfi user migration and multipliers

MarginFi users get their points matched and migrated to Project 0 with multipliers. Standard DeFi points-based incentive system for early adoption.

Infrastructure/marginfi-Based

Built on marginfi's lending infrastructure with unified margin extensions

Core lending infrastructure inherited from marginfi. Extended with unified margin capabilities across multiple venues.

How the Pieces Interact

Unified margin across venuesCorrelated liquidation riskHigh

Unified margin means a position decline in one venue (e.g., Drift perpetuals) can trigger liquidation of collateral in another (e.g., Kamino lending). This creates cross-venue liquidation cascades that don't exist when using protocols independently.

Multi-protocol integrationComposability attack surfaceHigh

An exploit in any integrated protocol (Kamino, Drift, Jupiter) could compromise Project 0 margin accounts. The unified margin design means the attack surface is the union of all integrated protocols' attack surfaces.

marginfi infrastructureProtocol maturityMedium

Building on marginfi's codebase inherits its technical debt. MarginFi itself experienced governance controversies (founder departure), and Project 0 may carry forward legacy code issues.

Points-based incentivesTVL sustainabilityMedium

Rapid TVL growth ($230M supplied, $95M borrowed in 48 hours) driven by points/airdrop farming. Once token launches and incentives normalize, mercenary capital may exit rapidly.

What Could Go Wrong

  1. Unified margin across multiple protocols creates correlated liquidation risk — a failure in one venue can cascade to all positions
  2. Very new protocol (launched Sept 2025) with limited battle-testing despite rapid TVL growth ($230M supplied in 48 hours)
  3. Built on marginfi infrastructure — inherits any legacy technical debt or vulnerabilities from that codebase

Cross-Venue Liquidation Cascade

Moderate

Trigger: A sharp market move triggers liquidations in Drift perpetuals that cascade into Kamino lending positions via Project 0's unified margin

  1. 1.Sharp crypto market decline causes Drift perpetual positions to approach liquidation Project 0's unified margin engine marks down portfolio value across all venues
  2. 2.Cross-venue margin call triggers liquidation of Kamino lending collateral to cover Drift losses Users lose positions in unrelated protocols due to unified margin design
  3. 3.Mass liquidations across Project 0 accounts create selling pressure on Solana markets Further price declines trigger more liquidations in a feedback loop
  4. 4.Confidence in unified margin model collapses Users withdraw to direct protocol interactions, Project 0 TVL plummets

Risk Profile at a Glance

Mechanism Novelty5/15
Interaction Severity5/20
Oracle Surface3/10
Documentation Gaps2/10
Track Record1/15
Scale Exposure3/10
Regulatory Risk5/10
Vitality Risk5/10
B-

Overall: B- (29/100)

Lower score = safer

More on Project 0

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