Ladies and gentlemen, say hello to Liquid Lend! A new revolutionary never before seen product here 1st on Yield Bank!!
Liquid Lend is our product for taking out collateralized loans by using the user’s LP tokens as collateral.
There are two sides to Liquid Lend. The first side is users taking out loans using the LP tokens as collateral — the borrower side. The second side is users can provide liquidity supporting the loans given to users collateralizing their liquidity pool tokens — the side of the lender.
You as a user will be able to take your LPs that you have received for providing liquidity and then use those liquidity pool tokens as collateral for taking out a loan. This is particularly useful in the case of liquidity pools model where the liquidity in pools is locked forever, you can now access that capital.
Liquid Lend will allow you to use that locked liquidity by accessing locked capital instantly through collateralizing the LP token.
Users taking out the loan will be charged an interest rate on their principal amount and they will be able to take out a loan in various stablecoins as well as major cryptocurrencies such as ETH and wBTC.
Accessing liquid capital made easy — Borrowing
In current DeFi space, if you want to access the capital you are liquidity mining with, you need to go through the painstaking process of going to the protocol, exchanging some of your LP tokens back in for the underlying assets, paying a gas fee, then taking that money and using it for your original intended purpose.
Instead, users utilizing Liquid Lend through the Yield Bank platform will be able to instantly access their liquidity from a liquidity pool without having to sell of a portion of their LPs back by simply collateralizing it.
Collateralized liquidity pools — Lending
Users on the lending side will be able to provide the liquidity for the Liquid Lend loans. As a reward for providing liquidity to Liquid Lend loans, the users will gain a percentage based reward (an APY) of the interest rate charged to the borrower.
Liquid Lend is creating a permissionless, decentralized lending product based on the collateralization of LP tokens allows users to earn rewards in an unprecedented manner, all while freeing up liquidity locked or unlocked for the borrower.
Follow us on any of our social media accounts listed below to stay updated. Liquidity Episode date will be announced in the coming weeks.
The article and any other associated content of Yield Bank does not constitute as financial advice. Cryptocurrencies are a high risk investment and may not be suitable for all members of the public and all types of investors. This is an experiment in DeFi yield aggregating to bring longer and steadier yields to its users.
Next article coming up: Yield Bank’s AMM & Send It App