ETNA Network’s Lending and Borrowing Application Explained
DeBank is arguably the most undervalued lending and borrowing application in the whole of the crypto space. It is currently deployed on the Binance Smart Chain and since it went fully live about a month ago, the application has seen a constant increase in user traffic.
So what really is DeBank?
DeBank is a lending and borrowing application that is built to be more user-friendly than it’s competitor, it is the first lending application that supports the use of NFTs as collateral. It also offers users who take out loans with ETNA (ETNA Network’s native token) as collateral zero interest on such loan. Again, the first ever in the crypto space.
DeBank offers users three main features, they are:
1. Lending: Users can lend assets to the application, to lend assets to DeBank, the user just simply deposits the assets to DeBank using the “Open New Deposit” Feature. Depositing into DeBank is like staking as the depositor earns great APY and also earn additional incentives in the form of bonuses.
2. Borrowing: Users can take out collateralized loans from DeBank. To do this, the user uses the “Open New Credit” feature. The user needs to select the asset to be used as collateral and then the asset he/she wants to borrow.
3. Liquidity-Earn Farming: DeBank also offers users an avenue to farm ETNA. By using the Liquidiy-Earn feature, users are able to provide liquidity on Pancakeswap and in turn, earn high APY in ETNA tokens
The following is a list of assets currently supported by DeBank and what the assets can be used for.
Collateralizable: This refer to assets that can be used as collateral
Borrowable: This refer to assets that assets that can be borrowed out as loan
Note: ETNA Network is working on supporting more assets in its lending application. As you know, ETNA currently support only NFTs from ETNA, we are working on a whitelisting mechanism that will allow the support of NFTs from other platforms as well.
Borrowing Power of Collaterals and Interest Charged on DeBank
This refers to the borrowing factor of each collateral. It determines the amount of credit or loan that can be accessed by a user for a given amount of a given collateral. The borrowing power is determined by a borrowing factor which defers for each collateralizable asset.
Below is a table that gives the borrowing power of supported assets and the interest charge.
Note: Loan value is equal to the product of the collateral value and the borrowing power, the following Loan/Credit Scenarios further explains it.
ETNA as collateral Scenario:
Say a user takes out BUSD using ETNA as collateral, 10,000 BUSD worth of ETNA used as collateral give the user access to 2,000 BUSD in loan (i.e, 10000 × 0.2 = 2,000 BUSD).
In this case where the user used ETNA as collateral, he/she pays zero interest on the loan as the interest rate for ETNA as collateral is zero, no matter how long the loan was taken for.
BNB, ETH, BTC as collateral Scenario:
Say a user takes out BUSD using BNB, ETH, BTC respectively, as collateral, 10,000 BUSD worth of these assets used as collateral give the user access to 4,500 BUSD, 3,500 BUSD and 3,500 BUSD in loan respectively (i.e, 10000 × 0.45,0.35,0.35)
In this case where the user used BNB, ETH or BTC as collateral, he/she pays interest on the loan. In this case, the interest rate is not zero, the user can choose a variable or a fixed rate when taking the loan.
NFT as collateral Scenario:
Say a user takes out BUSD using NFT as collateral, 10,000 BUSD worth of NFTs used as collateral give the user access to 1,500 BUSD in loan (i.e, 10000 × 0.15 = 1,500 BUSD)
In this case where the user used NFT as collateral, he/she pays zero interest on the loan as the interest rate for NFT as collateral is zero, no matter how long the loan was taken for.
Advantage of DeBank over other Lending Applications
DeBank offers its users several benefits and advantages over other lending applications, some of these advantages are as follows:
1. One of the most user-friendly application in the crypto space. Unlike other lending applications, DeBank is supper easy to use, and can be accessed easily on a PC and on mobile devices. DeBank will get better over time as the team is already working on upgrades that will make user experience smoother and seamless.
2. Security of the application is infallible. As we all know, security is the biggest concern when it comes to applications like DeBank and we have seen that lots of platform have been exploited in recent time. Unlike other platforms, DeBank was built on a security bedrock, our developers are highly experienced, they developed all the smart contracts following security best practices.
We are highly confident that DeBank is secured and the funds deposited in it a safe, users have nothing to worry about, their funds are safe in DeBank.
3. User-considerate Liquidation mechanism. Unlike other lending application that uses a strict liquidation mechanism that hurts users and the project as a whole, DeBank is a lot more considerate to users. The liquidation mechanism gives users a wide range of collateral fluctuation within which the user will not be liquidated. Typically, for a user to face the possibility of being liquidated, the collateral most have dropped by 40%. At such level of drop, it is advisable that the user pay back the loan either in part or in whole.
4. Great APY and additional incentives for depositors (lenders or stakers). DeBank offer great APY for deposits made.
For examples, depositors of Stable coins earn 18% APY and an additional monthly 50 ETNA bonus for every 500 Stable coins deposited.
For example, a user who deposited 10,000 BUSD will earn 18% APY in BUSD and 1000 ETNA in monthly bonus.
Also, when user deposits ETNA, they earn up to 27% APY, and 8% APY for NFT deposits and up to 50% APY for liquidity-earn farming.
5. Zero Interest fees on loan. DeBank is one of the few if not the only lending application that offers zero interest fees to borrowers. When users user ETNA or NFT as collateral, they are charged zero interest, no matter how long the loan last for.
6. Support the use of NFTs as collateral. DeBank is the first lending and borrowing application that supports the use of NFT as collateral. This is unique and the first in the whole crypto space. In addition to this, when users use NFT as collateral, they also enjoy interest free loans.
What to Expect going forward:
As it is our focus to develop novel products accessible by all users, both the experienced and the inexperienced, ETNA Network’s team have been dedicated to finding better ways to make the experience of users smoother and frictionless.
Considering this, we are currently developing our mobile app, it will be a user-centered mobile wallet that will also support DeBank and also function across all major blockchains. Users will also be able to login or interact with DeBank by connecting with their wallets or by creating an account using login options like email address account creation.
This new upgrade will also offer users cost effective transactions as the cost of transacting on it will be very insignificant.
Try out the current version of DeBank at: https://debank-lb.etna.network/
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