CherryLend Litepaper
We’re excited to release the official litepaper of CherryLend. This article will explain the full vision of CherryLend, an open-source and non-custodial lending protocol built to roam beyond the reach of centralized authorities.
Contents
- Abstract
- Introduction
- Protocol Objectives
- Technical Approach
- Contributors
- CHRY Tokenomics
- CHRY Utility
- Roadmap
- Final Remarks
1. Abstract
Incentives.
Incentives are essential to motivate individuals and organizations to achieve desired outcomes.
They are a powerful tool that can drive behavior and lead to improved performance, increased productivity, and favorable results.
Life revolves around incentives.
Looking at Cardano specifically, the fundamental reason Cardano has been a massive success equates to its well-crafted incentives; ADA holders can stake their ADA and earn a return, and in turn secure the network.
While the Cardano DeFi system continues to grow, we believe the projects that can offer the best-crafted incentives, coupled with a sleek user experience will be the winners of tomorrow.
CherryLend is an open-source and non-custodial lending protocol, and we strive to be a leading lending platform on Cardano with a simple strategy: secure code, superior user experience, and the strongest incentives.
It is our hope that this competition in the lending market will make the Cardano ecosystem better off, and encourage all competitors to deliver the best protocol possible, ultimately benefitting all Cardano community members.
2. Introduction
CherryLend is crafted to be an open-source and secure pooled lending protocol built on the Cardano blockchain.
We believe our development abilities coupled with proven execution
strategies positions CherryLend to be a leading participant in the Cardano lending landscape.
CherryLend is developed by a team of global contributors with a common belief that building a highly secure and censorship resistant platform for the long-term is of primary importance.
All aspects of CherryLend will be entirely open-source to ensure that under any conditions, CherryLend code will always be reproducible.
Using CherryLend, any Cardano user will be able to add assets to liquidity pools and earn a passive return from those who decide to borrow those pooled assets.
Conversely, borrowers can access funds from a pool of lenders without the need for intermediaries on a completely secure and transparent platform.
The first iteration of CherryLend (Version 1) will be a peered lending protocol. V1 is scheduled to launch in May 2023.
Following the launch of CherryLend V1 in May, CherryLend V2 will be released — a pooled lending protocol.
With CherryLend V2, users, both borrowers and lenders, will be able to
execute loan activities without a direct peer to accept a loan or borrow
request.
To incentivize the long-term use of the CherryLend protocol, both versions
of the protocol will provide well-crafted and highly-attractive rewards to users of CherryLend.
We are confident that our strategy of incorporating a well-crafted and
highly-attractive rewards program for the long-term positions CherryLend to become a leading participant in the Cardano DeFi space.
Below is a description of the design, features, roadmap, and contributors of CherryLend.
3. Protocol Objectives
Our protocol objectives are:
- Provide lenders and borrowers a secure and user-friendly environment to seamlessly transact without the possibility of 3rd party censorship.
- Increase Cardano DeFi’s total value locked by incentivizing community members to safely utilize their assets.
- Deliver a world-class, secure protocol with a highly intuitive and sleek user experience.
4. Technical Approach
Peer Lending
In May 2023, CherryLend V1, our peer-to-peer protocol, is scheduled to launch. V1 will use open-sourced smart contracts that have been successfully audited.
We would like to acknowledge the great work the team at Aada Finance has done in writing these smart contracts and for providing them to the Cardano community.
Aside from open-source smart contracts that will be utilized with CherryLend V1, all other components of the protocol are built from scratch and will also be open-sourced for the benefit of the Cardano community.
Yield Farming
We intend to launch yield farming from the 1st day of launch.
We plan to tweak open-source yield farming contracts and integrate them into our lending platform. We’d like to thank the TeddySwap team for creating these smart contracts and providing them to the Cardano community.
Pooled Lending
Following our peered lending launch, we will be launching our pooled lending solution prioritizing security and performance.
This pooled lending platform is scheduled to launch in September 2023. CherryLend V2 will have a customized batching solution to process all pooled lending requests.
CherryLend V2, our pooled lending platform, will be similar to Aave, where anyone at anytime can utilize assets from a liquidity pool. An exact technical breakdown of this architecture will be released in the near future.
5. Contributors
Our team philosophy stems from the fundamental belief that Cardano is the most secure and decentralized blockchain in existence.
Our development team consists of veteran Haskell and Plutus developers, which have built and contributed to some of the most well known projects on Cardano. Nexus Software, Saturn Labs, and Cardano Blockhouse are all long-time Cardano developers and builders.
6. CHRY Tokenomics
CHRY is the platform token for the CherryLend protocol.
There is a total of 88 million (88,000,000) CHRY tokens.
A detailed explanation of CHRY tokenomics will be released in the near future.
Opportunities to earn CHRY tokens will be announced soon. The first chance to earn CHRY tokens has been completed, where we informed our community that those who liked this tweet would be rewarded.
7. CHRY Utility
The CHRY token utility is straightforward and designed to provide value to supporters and users of the protocol. This will be done through these two primary methods: fee generation and governance.
Fee Generation
The CherryLend protocol is designed to earn revenue in multiple ways, including:
- Interest: a percentage of each loan paid by borrowers;
- Liquidation fees: percentage of collateral liquidations;
- Portal fees: fees incurred when using integrated dApps via the CherryLend interface;
Earned interest payments will be the most prominent source of revenue for the CherryLend protocol.
Interest earned by the CherryLend protocol will be utilized to provide
maximum benefit to CHRY holders.
Interest earned by the protocol will be handled in the following manner: Each time 100 ADA’s worth of revenue is generated by the protocol, 50% or 50 ADA will be converted in the open market CHRY and used to deepen liquidity of both the ADA lending liquidity pool and the CHRY lending liquidity pool.
Governance
CherryLend is structured as a decentralized autonomous organization (DAO) where holders of CHRY decide the future direction of the CherryLend protocol.
Matters of importance that will be determined by CHRY holders include: fees charged, supported tokens on the platform and utilization of treasury proceeds (primarily interest and fees earned).
CHRY tokens represent a 100% governance stake of the CherryLend protocol.
8. Roadmap
The plan for CherryLend is simple: deliver a secure and user-friendly platform that incentivizes users to participate in Cardano DeFi.
We strive to become a leading lending protocol by delivering well-crafted incentives through a world-class user experience.
9. Final Remarks
At CherryLend, we strive to deliver a secure, transparent, and efficient
lending platform that prioritizes incentives to users, both borrowers
and lenders, to participate in using the protocol on a regular and long-term basis.
As the Cardano DeFi industry develops, CherryLend is committed to play a key role in building crucial infrastructure that will be instrumental in Cardano becoming, at least in part, a viable alternative to the existing global monetary system.
Join us in our mission to create efficient and robust financial tools that are built to roam beyond the reach of centralized authorities.
For more information on CherryLend:
Website | Twitter | Telegram | Discord
CherryLend is an open-source and non-custodial lending protocol built on the Cardano blockchain.
