Welnance — a protocol on Binance Smart Chain. It establishes money markets, which are pools of assets with algorithmically calculated interest rates, based on supply and demand for an asset. The providers (and borrowers) of the asset interact directly with the protocol, receiving (and paying) a floating interest rate. Without the need to negotiate terms such as maturity, interest rate or collateral with a peer or counterparty.
About the Wellnance project
Each money market is unique to a Welnance asset (such as BNB, a BEP-20 stablecoin like BUSD or a BEP-20 utility token like Augur). Also, it contains a transparent and public ledger with a record of all transactions and historical interest rates.
When a user provides an asset, it becomes a fungible resource. This approach provides significantly more liquidity than direct lending. If every asset in the market is not borrowed, users can withdraw their assets at any time without waiting for the specific loan to be repaid.
Other coin defi features:
| 1 | Assets, supplied to the market, are represented by a balance of BEP-20 tokens (“welToken”), which gives the holder the right to increase the amount of the underlying asset. |
| 2 | As interest accumulates in the money market, which depends on the demand for borrowed funds, welTokens become convertible into an increasing amount of the underlying asset. |
| 3 | So earning interest is as easy as having a BEP-20 welToken. |
Users, providing their cryptocurrency or Welnance digital asset, will receive a vToken, such as vBTC. It is the only token that can help to redeem a provided underlying collateral. This will allow users to use these tokens to hedge other assets or move them to cold storage wallets that support Binance Smart Chain.
More about defi app
Individuals with long-term investments in ETH and tokens (“hodlers”) can use the Welnance money market as a source of additional income from their investments. For example, a user who owns Augur can transfer their tokens to the Welnance protocol and earn interest (expressed in Augur) without having to manage their assets, fulfill loan requests or take on speculative risks. dApps, machines and exchanges with token balances can use the Welnance protocol as a source of monetization and additional income through the “sweeping” system. This could open up entirely new business models for the Welnance ecosystem.