What is LEND? LEND Protocol Beginner’s Guide

LEND Guide for New Users

Consider this to be a simple guide to what you can expect from the LEND DeFi ecosystem. Keep reading to discover all the ways you’ll be able to use the protocol to make the most out of your cryptocurrencies and savings.

What is LEND

LEND is a DeFi multi-chain lending platform looking to stand out with its revolutionary revenue sharing model in a market with $54.15 billion in total value captured. LEND users can interact with the protocol in a few ways; Deposit crypto assets to earn competitively high interest, similar to a traditional savings account. Or use their crypto assets as collateral to borrow tokens.

With LEND you’ll be in complete control of your assets and interest!

The LEND Mission

The team behind LEND believes LEND is the future of DeFi. LEND is a DeFi multi-chain lending platform, designed from the ground up with the intention of creating a fully inclusive decentralized financial ecosystem with zero barriers to entry.

With LEND, users will know they are safely maximizing the earning potential of their crypto assets and savings.

Users can interact with the protocol in a few ways; deposit crypto assets to earn competitively high interest, similar to a traditional savings account, or use their crypto assets as collateral to borrow tokens.

Key Features

• Lending — Supply assets to the protocol to earn interest
• Borrowing — Supply assets as collateral to borrow crypto
• Governance — Vote on important future protocol decisions
• Earning — Earn 25% of all platform revenue with $LEND tokens
• MultiChain — Launching on BNB Chain, Eth & Polygon with framework complete for many other chains. Each chain means an additional stream of revenue to be earned by $LEND token stakers.

How Does LEND Work

LEND works by establishing Lending pools out of deposited crypto assets. These Lending pools are the collective tokens of all users who wish to deposit assets and are used to facilitate borrow requests from other LEND users.

The Lending pools are algorithmically derived and have a floating variable, but competitive interest rate model, based on the current supply and demand of each respective asset. If supply outweighs demand, it will have lower rates for borrowers and lenders.

Supply Assets, Get tTokens, Start Earning

When a user supplies assets to the LEND protocol, they will receive a tTokenized version of the asset. For example supply $USDC -> to receive $tUSDC. A tToken is best thought of as a receipt of your original deposit + interest.

Once you have these tTokens, you will automatically start earning interest as your deposited Tokens are used to create borrow balances by other users on the protocol. When supplying tTokens the underlying amount of tTokens will increase in value over time - similar to a typical savings account, but for crypto!

At any point the underlying tTokens can be exchanged for the original deposited assets, plus any interest generated from supplying.

Lenders and Borrowers of crypto assets will interact directly with the protocol in either earning or paying a floating interest rate. The benefit of being decentralized means this is all done without the need to negotiate terms of maturity, interest rate or collateral with any peer or counterparty!

$LEND Tokens

LEND designed this ecosystem to shake up the DeFi space and create real value for its users, and one of the primary ways the protocol does that is offering $LEND as an incentive reward to all its users.

• Initial Supply: 14,250,000 $LEND.
• Private Sale: $0.03.
• Public Sale: $0.07.
• Utility: Stake $LEND tokens to earn 25% of multichain platform revenue.

Anyone who lends, or borrows crypto assets on the protocol will receive $LEND tokens.

$LEND tokens will be the native token for the LEND protocol. Within the token structure, the token will give holders governance and voting rights in important decisions for shaping the future of the platform.

$LEND tokens are also the key to earning passive income from the protocol. Once the token has launched, holders can supply $LEND to the protocol in exchange for $tLEND which actually makes them eligible to claim 25% of the total revenue generated by the protocol!

$tLEND tokens can also be staked or locked by users to earn additional Platform Reward Fees based on a 90-day vesting schedule. Locking tokens for the full 90-day term means an increased share of protocol revenue will be received.

Is LEND Safe?

The sustainability, safety and overall longevity of the LEND protocol is something the team has kept in mind since day one. LEND isn’t aiming for overnight success - they’ve been building the ecosystem for over a year and aim to stick around for many more.

The team behind LEND desires to ensure protocol safety from any adverse events. To protect its users and itself, the project has adopted a risk mitigated approach to all aspects of the platform.

Safety Features

• Security Audit — Industry leading experts at Peckshield have reviewed and approved LEND smart contracts multiple times. You can read the latest report by clicking here.
• Collateral Requirement — All borrowers required to be overcollateralized for optimal liquidity within protocol. This means users have to provide more collateral than they are able to borrow.
• Only Liquid Assets — LEND will only ever support the most liquid assets on the market. This has been done to avoid protocol manipulation that might result in total systemic failure.
• Automated Liquidations— Unhealthy borrower accounts that go into negative equity will be liquidated by the protocol to remove bad debt.

For lenders, these features means you can provide assets and earn interest without the need to be exposed to much counter-party risk.

For borrowers, that means you’re much less likely to end up with negative equity and be subject to liquidation.

Thanks for Reading! Welcome to the LEND Ecosystem

This guide serves as an important introduction to the LEND ecosystem and each reader understands the basics of the platform. LEND will continue the LearnToLEND series to make sure everyone, from DeFi experts to Crypto newbies, can understand LEND and start to LENDtoEarn.

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