AvaLend Finance — a decentralized lending protocol where users can participate as savers or borrowers, depending on their preference. The Avalend protocol values the security and use of cryptographic assets as they enable transactions and contain the assets and liabilities of the protocol.
About AvaLend Finance
Avalend's key mechanism - to strike a balance between lending, borrowing and liquidating, which includes dynamic interest rate adjustment and risk control. Avalend Governance Token - AVAL is greatly extended among the entire lending and borrowing algorithm, which distinguishes the Avalend protocol from other lending protocols.
By borrowing, you can get liquidity (working capital) without having to sell the assets you want to hold. The main purposes of borrowing are usually new investment opportunities, arbitrage trading, hedging and management participation. For example, assets can be borrowed and used in AMM pools for higher returns, margin trading or needed for immediate use.
Usage features:
| 1. | Firstly, make sure you have deposited funds with the "Use as collateral" option. |
| 2. | You can borrow assets up to your "Loan Limit" in relation to the "Liquidation Threshold" of the assets by using the home page and clicking "Borrow" next to the asset of interest. |
| 3. | You may borrow assets up to your "Borrowing Limit" subject to the "Liquidation Threshold" of the assets. Depositing assets, used as collateral, increases the loan limit. |
For account-degrading transactions, such as a Loan or Withdrawal (if you have outstanding debts), the account balance cannot fall below a certain value (for example, 1.05). The interest rate you pay for borrowed assets, depends on the borrowing rate, which is derived from the ratio of demand and supply of the asset. The interest rate is constantly changing, you can find your current loan rate at any time on the main page.
More about defi app
Lenders deposit one token with Avalend Finance to provide credit liquidity. In the event that borrowing does not occur, lenders may still receive full interest. When borrowing occurs, lenders will be able to have a base offer rate higher than the full interest fee.
After that, lenders will receive 50% of the current interest on the pool loan and AVAL reward. For example, lenders can earn interest on Dai by providing liquidity in a pool of Dai. Unlike an exchange or peer-to-peer platform where a user's assets are matched and loaned to another user, the Avalend protocol aggregates each user's offer. When a user provides an asset, it becomes a fungible resource.
Reviews (0)