Use cases
Use case as a lender
Allows any protocol to tap into its treasury and turn it into a lending & borrowing platform, on their own terms. A lender can lend assets out of their treasury or wallet, which would allow them to earn interest on their otherwise idle funds
Borrowing power is unlocked for the protocol’s native token.
Can act as a buyback mechanism. During a default period, the protocol simply get’s their own tokens back at a predetermined price which reduces circulating supply or can be given to token holders
Can be used as a funding/raising tool in the future (roadmap item)
Use case as a borrower
Deposit collateral instead of selling your token for funds
Borrow without worry of liquidations
Do anything you want with your loan including farming at a higher APR than your loan
Use it as a hedge against your deposited collateral. If you loan becomes greater in value than your collateral by the repayment due date, keep you loan and default on your collateral.
Borrowing power is unlocked for the native token holder
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