Annex Finance - Bridging Lending Across Multiple Chains

The platform offers holding incentives along with multi-chain features to drive user adoption.

By
BSCNews
on
July 25, 2021
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Introducing Annex Finance

Annex Finance is a Decentralized Finance (DeFi) lending and borrowing platform that aims to bridge the traditional lending platform with DeFi. Annex Finance believes they understand the inefficiencies and issues that accompany traditional centralized financial systems and look to create a better solution utilizing the power and freedom of DeFi.   

Annex Finance in the beginning will launch on Binance Smart Chain (BSC) due to its cheaper fees and the company’s opinion that it is the most secure option. In time, the goal is to expand Annex Finance into the Ethereum and Polygon blockchain networks. Annex also looks to grow out their ecosystem by instituting their native token $ANN as well as a Decentralized Exchange (DEX)


Source


Annex Finance isn’t concerned with competition with other lending projects, such as Venus for example, but instead wants to coexist with them. The goal of Annex Finance is to bridge the BSC, Ethereum, and Polygon networks by offering a lending platform that can support all of them.

With Annex Finance, users can borrow and lend money through smart contracts similarly to traditional borrowing and lending DeFi protocols. Annex has a variety of unique other features that distinguish their protocol from others.


Annex Auction

Annex Finance has introduced an interesting and unique way of onboarding projects to the AnnexSwap exchange. Annex Auction is a collection of built out open-source smart contracts that look to help projects launch on the AnnexSwap exchange by bolstering the attractiveness of the ready to launch token. 

This feature brings a lot of benefits to both the new project that is gearing up for launch as well as Annex Finance. According to Annex Finance’s Whitepaper, “The key benefit of Annex Auction is that it provides Initial Liquidity Providers for new listing tokens with low prices and keeps the auction token price higher than the listing price.” 

Source: Annex Finance Whitepaper

The image shown above details how the token auction process will work on Annex Finance. The auction format Annex Finance looks to utilize should also be of benefit to the Annex platform. 


Annex Lending

The Annex Lending protocol has built a collateral token called aToken. Stated in Annex Finance’s Whitepaper, “aTokens represent the unit of the collateral supplied, can be used as a redemption tool and are created and implemented by Governance processes and voted by Annex Token holders.”

Annex Finance users will have the option to supply supported crypto assets to the platform, which can be used for collateral against loans, supply liquidation, and capitalizing on the offered APYs. Users that have supplied their digital crypto to Annex Finance will receive an aToken, such as aBTC or aBNB. The aToken will be used to redeem the collateral supplied. 

For users who look to borrow supported crypto from the Annex Finance platform, users will have to deposit collateral or aTokens that become locked in the protocol. Once done, however, users can borrow up to 60% of the collateral value. If a user's collateral value drops below the collateral ratio threshold, a liquidation event will occur. 

Annex Finance’s Automated Market Maker (DEX)

Annex Finance will also offer an Automated Market Maker (AMM) DEX component to their platform, allowing users the option to trade and mint LP tokens. This will offer active Annex Finance users the option to earn high APYs while at the same time increasing ANN price and volume. 

The platform will also allow exclusive yield farming for aTokens. Utilizing their DEX mechanism, users can greatly enhance their capital through additional opportunities. The platform’s DEX will leverage SushiSwap's coding for enhanced token farming. 


NFT Marketplace 

Annex Finance will also host an Non-Fungible Token (NFT) marketplace, where users can buy, trade, and exchange NFTs. Users will also be able to mint NFTs with the help of Annex Finance’s NFT minting tool. The ANN native token of Annex Finance will be used to bid on for-sale NFTs.

The ANN Token

Perhaps one of the most important features of Annex Finance is their native token, the aToken (ANN). The ANN token will be used as a governance tool on the Annex Finance platform. ANN will simultaneously function to supply liquidity and collateral. ANN will have other use cases as well, such as being able to purchase and bid on NFTs and Auction currency. 

Automatic Holding Rewards

Besides utility, the ANN token also comes ready with automatic holding rewards. If users hold ANN tokens for more than 30 days, on the 31st day holders will receive a .2% APY return on their ANN holdings. 

A visual example of how the automatic holding rewards process operates

An example: If a user holds 100 ANN for 1 month, they receive no APR bonus. After the 30 days, users receive a .2% APR on their tokens. If the same user holds for another 365 days, they will receive a 73% APR on their ANN holdings (365 days*.2% =73%). 

However, transferring or selling ANN will halt the .2% daily APR rewards.  

From the Annex Whitepaper:

BSC Holding Rewards Factors: - Epoch Per Block: 28,800 blocks (1 day) - Rate of Interest Per Epoch: 0.2% - Eligible Epochs: 30 epochs - Minimum Holding threshold: None - Delist Requirement: transfer ANN to any address - Reward Initial Pools Amount: 5,000,000 ANN 

ETH Holding Rewards Factors: - Epoch Per Block: 6,400 blocks (1 day) - Rate of Interest Per Epoch: 0.2% - Eligible Epochs: 30 epochs - Minimum Holding threshold: None - Delist Requirement: transfer ANN to any address - Reward Initial Pools Amount: 5,000,000 ANN 


ANN Tokenomics

The aToken (ANN) distribution is as follows::

  • Prior Liquidity Price Speculation Auction (PLPSA): 50,000,000 ANN
  • LP Pool Mining: 350,000,000 ANN
  • Governance Mining: 350,000,000 ANN
  • BSC Holding Reward Pool: 50,000,000 ANN
  • ETH Holding Reward Pool: 50,000,000 ANN
  • Governance Supply: 30,000,000 ANN
  • Community Treasury: 120,000,000 ANN
  • Total Supply: 1,000,000,000 ANN
  • Initial Market Cap: $10m
  • Total Market Cap: $200m
Source; Annex Finance Whitepaper Doc


Roadmap


Both of the images shown above detailing Annex Finance’s roadmap are sourced from Annex Finance’s most recent Whitepaper.


Concluding Thoughts

Annex Finance seeks to become a sophisticated lending and borrowing platform in the DeFi space. The protocol boasts powerful use case features rarely seen on lending and borrowing platforms, such as an AMM-capable DEX as well as an auction style launchpad. 

Annex Finance’s ANN token goes above and beyond what most DeFi tokens accomplish. ANN provides governance, liquidity, purchasing power, a built-in APR reward system and much more. It should be exciting to see if Annex Finance can take the DeFi industry by storm as their momentum builds. 

To learn more about Annex Finance, visit the following links:

Website

Twitter

Annex Finance AMA on BSC News

Telegram

Medium Blog

Reddit

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