A Look Into LEND’s Plan to Unify a $50 billion DeFi Market

by BSC News

February 6, 2023


By going cross-chain, LEND is aiming to seamlessly link lenders and borrowers across all chains.

Addressing DeFi Inefficiencies

The advent of Decentralized Finance (DeFi) has opened up a world of possibilities for everyday people to maximize return on their investments. This is due to its permissionless and peer-to-peer nature, which allows for seamless interaction. Despite market fluctuations, lending platforms among all DeFi applications have continued to experience steady growth.

The DeFI market has around $50 billion in Total Value Locked (TVL) fragmented across multiple chains. However, most protocols only work on their native chain or have limited multi-chain capabilities. This makes it difficult to lend and borrow assets across various chains without the help of third-party bridges.

The LEND platform, with its latest development, is addressing the inefficiencies of existing DeFi protocols by allowing borrowers and lenders to easily access assets across various chains with a single button click. This increases lending opportunities for lenders and provides borrowers with more options for lower borrowing rates.

With its new cross-chain lend and borrow markets, LEND is poised to revolutionize the DeFi landscape. This means that users can earn "real yield" effortlessly across chains through the LEND protocol.

What is the LEND Platform?

LEND is a seamless cross-chain DeFi lending solution, providing users with the ability to safely maximize the earning potential of their crypto assets and savings.

There are a variety of ways for users to engage with the protocol. Similar to a traditional savings account, they can deposit their crypto assets and receive high-interest returns. Alternatively, they can utilize their crypto as collateral to borrow other assets.

Through LEND, crypto holders can passively earn interest by supplying liquidity for borrowing requests, as well as instantly gain access to on-chain liquidity without rigor. The process is seamless and eliminates the need for intermediaries, as the protocol facilitates the entire lending process.

How it Works

On LEND, users can deposit the assets they intend to lend into one of the LEND money market pools via a smart contract.

Once the assets are in the smart contract, they are accessible for other users to borrow. The smart contract will then automatically generate tTokens for the lender, which accrue interest and can be redeemed in the future along with the original assets. With LEND's cross-chain development, both lenders and borrowers have the opportunity to use collateral to access instant liquidity on any network.

Benefits of LEND's cross-chain platform

  • Borrowing and lending of a wide range of assets across different chains.
  • Easier access to cross-chain liquidity allows the platform to generate more revenue and distribute to $LEND token stakers.
  • Increases the borrowing capability thus increased interest earning potential for the lenders.
  • Enables borrowers to take advantage of cheaper borrow rates on different chains.

LEND and Safety

LEND has placed a strong emphasis on sustainability, safety, and longevity from the beginning. The team behind LEND wants to ensure the stability and security of the protocol and has taken a cautious and risk-averse approach in all its activities. This focus on long-term stability sets LEND apart and indicates a commitment to providing a secure and trustworthy platform for users.

Borrowers on the LEND platform are required to be over-collateralized, meaning they will only be able to borrow less than the liquidity they have provided. In addition, LEND's smart contracts have previously been audited by industry security leaders Peckshield and D3ploy.

How $LEND Token Benefits from the Cross-chain Movement

$LEND is the native token at the core of the LEND ecosystem, which is crucial for earning cross-chain income through the protocol. By supplying assets or borrowing from the protocol, users can earn LEND tokens as a bonus for up to 25% of the total revenue generated from the platform.

Thanks to the cross-chain model, interest rates can vary per chain based on supply and demand, allowing users to compare borrowing rates and choose the cheapest option.

Additionally, users can participate in one-click lending on any chain, increasing their earning opportunities. This enhanced accessibility for both lenders and borrowers allows for seamless cross-chain borrowing and lending, resulting in more revenue for LEND token stakers.

LEND will continue the LearnToLEND series to ensure that everyone, from DeFi experts to Crypto newbies, can understand LEND and start to LENDtoEarn.

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