LUNARLEND — Lending Protocol
We’re thrilled to announce the public launch of LUNARLEND, an LunarDEX lending protocol to power the financial markets & applications of the future.
Supplying liquidity to LUNARLEND is easy. Each market has its own xToken (xETH, xGLMR…), which you’ll receive when you supply that asset to the protocol. xTokens represent your balance on the LunarLend lending platform.
Simply by holding xTokens, you’ll earn interest. Interest which accumulates via the xToken’s exchange rate over time. Each xToken becomes convertible into an increasing amount of its corresponding token.
Launch price/date and tokenomics — TBA
How lending works?
Just like banks… but better
Lending platforms offer cryptocurrency loans in a trustless manner; allowing the holders to stake the coins they have in the platform for lending purposes.
On the Lending platform, a borrower can take a loan, allowing the lender to earn interest upon repayment. The lending process is executed from the start to finish without intermediaries.
A token holder sends the tokens they intend to loan out into a pool by means of our smart contract(s). Once the coins are sent to a smart contract, they become available to other users for borrowing. Thereafter, the smart contract issues tokens (the platform’s native token) automatically lenders. Those tokens can be redeemed; in addition to the underlying assets that were sent to the smart contract.
Virtually all loans issued via the native tokens are collateralized. This means that users who wish to borrow funds will need to provide a guarantee. However, unlike the centralized financial system, the guarantee in the DeFi space is in the form of cryptocurrencies that are worth more than the actual loan itself.
Get in here and join the party!