Holdefi: A Decentralized MultiChain Lending Platform

Holdefi collateral does not earn interest compared to other protocols as it is separated from the borrow and loan bucket. This is done to assure users that their collaterals are never at risk.

By
Wilfred Victor
on
March 13, 2021
Category:
Project Insight

Introduction

Lending and borrowing is an integral aspect of the decentralized finance (DeFi) landscape. It’s use-cases have given the decentralized finance movement some substantial value, vitality, and relevance among users. The increased ability for users to interact with financial instruments without an intermediary or a centralized authority is an attribute of DeFi’s innovation. Features like decentralized lending and borrowing have attracted new users and increased interests. Holdefi, as the name connotes, concentrates quite squarely on these essential aspects of the DeFi ecosystem with a move to improve the operation and deliver the best value for the platform users.


What is Holdefi?

Holdefi is an Ethereum based lending platform. Users can deposit and hold their assets to earn interest or borrow tokens with decent interest rates that are quite competitive and better when compared to other existing solutions. An open-source protocol where Ethereum blockchain developers can develop applications and also a non-custodial protocol.

Holdefi is implementing a new mechanism for determining interest rates, giving more value to the borrower using more fair metric. Based on these new mechanisms, the borrowers can borrow assets and pay interests with more predictable and stable rates.


Key Features

Key features of the Holdefi Platform includes;

  • Lending and borrowing
  • Governance protocol
  • Infrastructure for Ethereum-based products


Project Components

Enhanced lending and borrowing capabilities are at the heart of this decentralized protocol. The protocols governance feature will slowly allow users to take control of the project. This system  aims to further decentralize Holdefi in the future. Currently, the team is still carrying out a large amount of development and protocol decisions to ensure a successful launch wil the governance token comes into fruition.

In Holdefi, all lending and borrowing activities are a measure to the end that the users get real value for their interaction with the protocol. For example, the borrowers get a loan with a stable interest; when they make a repayment, the interests are distributed among the supplier according to the amount they have provided. The total supply in the protocol, therefore, determines the supply rate. This mechanism also increases the supply rate based on the promotion.

However, borrowing in the protocol comes with a necessary condition that must be fulfilled for borrowing activity. The collateral provided must be more valuable than the assets to be borrowed. This ensures that the borrower gets to fulfill the obligation to repay his loan or risk getting liquidated. Deposited collateral can be used to borrow different assets according to users’ preferences.

Users will earn POWER when depositing collateral in a win-win arrangement. The POWER distributed will be directly related to the price and the number of deposited collateral and collateral value to the loan (VTL). The collateral will remain intact until the user pays back his loan or gets liquidated. Whichever way, the collateral does not earn interest in the Holdefi protocol.

Holdefi users do not have to sell their holdings to borrow particular assets; they can instead fix them as collateral and borrow stablecoins (USDT, USDC, DAI, BUSD) based on their collateral power. Similarly, they can deposit stablecoins and earn interest calculated based on an annual rate.

Being open-source, developers on the Ethereum blockchain can build their applications on existing protocols to enrich their products. Therefore we should already start seeing projects already built on the protocol, ready for deployment.

Governance is a critical aspect of the protocol, planned for a complete decentralization to take full effect in the future.

Users can use the Holdefi app by connecting with any of the three wallet applications.

Or by connecting to the platform without a wallet on the Kovan Testnet network. By this, users can participate in the Earn, Borrow, and Faucet features available on the protocol.


Tokenomics

$HLD tokens is the native token of the Holdefi protocol built on the Ethereum blockchain. Embedded in its token structure, the token gives holders governance and voting right to make decisions on the platform. Part of the governance decision on the token design is integrating the burn mechanism, liquidity mining, and revenue sharing, plus other features to be introduced in the future.

The total supply of $HLD is 100 million.

  • Seed Fund 3,000,000 vesting one year
  • Token Sale 13,000,000
  • Private Sale 11,000,000 vesting 6 months
  • Public Sale 2,000,000 no lock-up
  • Foundation 20,000,000 vesting 4 years
  • Team 15,000,000 (5,000,000 no lock up and 10,000,000 vesting 4 years)
  • Ecosystem Growth Pool 47,000,000 (7,000,000 no lock up and 40,000,000 vesting 4 years)
  • Smart Drop 1,000,000 no lock-up
  • Advisor 1,000,000 vesting 4 years

Roadmap

Holdefi version 2 is scheduled for release with the release of more applications for users. To make this happen, Holdefi will use smart proxy contracts and other smart contract features like Flash Loan and Time Locks to be announced in the future.

The addition of all of these extended smart features in the protocol and the platform’s open-source code will allow for incredible iterations and developments within the protocol.

Concluding Thoughts

Although there are a plethora of lending protocols, not many have been successful in adding real value to users. Especially in the areas of collaterals. Holdefi collateral does not earn interest compared to other protocols as it is separated from the borrow and loan bucket. This is done to assure users that their collaterals are never at risk, and it’s going to stay safe and ready whenever they repay their debts and wish to take it out of the protocol at any time.

By enabling the governance capabilities of the HLD tokens, holders will have increased rights at decision-making within the protocol as the team aims for the token to become an utterly community-driven project.

For those who wish to learn more about Holdefi, check out the following resources and media pages:

Website

Twitter

Medium

Discord

Telegram Announcements

Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.

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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.