Launching Deepr Finance: Your Gateway for Lending and Borrowing

6 min readJan 11, 2024

Nakama is proud to announce the launch of Deepr Finance, a decentralized lending and borrowing platform on ShimmerEVM, empowering users with equal financial access, a community-centric token model, and a commitment to long-term value creation.

Developed as a fork of the well-established Compound V2, and in collaboration with the renowned security audit firm HashEx, Deepr Finance maintains high security standards.

Lend. Borrow. Succeed.

Decentralized lending and borrowing plays a pivotal role in democratizing finance, providing a level playing field where everyone can easily access capital, fostering financial inclusivity, and empowering individuals to take control of their financial future.

Deepr Finance emphasizes its commitment to the core values of DeFi, prioritizing high security, fair tokenomics, and a long-term vision. This includes empowering our community and striving for enduring success.

DeFi lending and borrowing offers a plethora of benefits, but it’s crucial to recognize that the reliability and security of existing solutions vary significantly, with some lacking strong security measures and long-term vision. Deepr Finance sets itself apart by prioritizing top-notch security practices and a forward-thinking approach while ensuring the platform’s durability and sustainable growth.

At Deepr Finance, we’re on a mission to provide long-term value to all stakeholders — users, investors, the team, and liquidity providers. We believe in fostering tight partnerships, acknowledging that our collective strength is greater.

Initially, Deepr Finance will open markets for USDT and SMR. As liquidity increases on ShimmerEVM, we plan to incorporate additional assets in the future. (Learn how to bridge from other chains to ShimmerEVM in this tutorial from Blockbytes)

Timeline

January 8, 2024: Launch of closed beta
January 11, 2024: Deepr Finance launch (provide liquidity and access loans)
January 15, 2024: Activation of community liquidity incentives (paid in DEEPR)

Ensuring to deposit collateral before January 15 puts you in a favorable position to start enjoying high rewards in the beginning. Notably, you can earn APR from users borrowing even without DEEPR incentives.

We are also providing an additional incentive: those that lend at least $200 of assets will be entered into a draw to win a Nakama Godai NFT, see this article for more information on utility.

Delaying the activation of community liquidity incentives will provide us with sufficient time to analyze the optimal level of incentives to ensure our long-term success.

Tested and trusted

Following a successful trial period of Deepr Degen, a limited version of Deepr Finance for testing purpose, without encountering any issues over several weeks, we are now highly confident in the launch of the fully developed version of our platform.

We have addressed valuable feedback from diverse testers, and our developers have fine-tuned the platform to ensure the smoothest possible user experience.

Tokenomics and incentives

Central to the platform is our native utility token, DEEPR. This token embodies our core values of transparency, fairness, and equality. Deepr Finance has a simple tokenomics model with a total supply of 1,000,000,000 DEEPR. The tokens will be minted and distributed according to the following scheme:

Our tokenomics model allocates a significant percentage of DEEPR tokens to the community, ensuring widespread ownership. DEEPR holders can expect governance rights, passive income opportunities, and increased utility as we roll out more features.

You can earn DEEPR token rewards by simply supplying collateral and borrowing from the protocol. The incentives for community liquidity are particularly lucrative in the initial stages following our platform launch, making it rewarding to join early. This DEEPR emission distribution is spread over 156 weeks.

We have opted for a fair launch, ensuring no advantage for VCs or early investors.

Further information about the tokenomics can be explored here.

Please note that DEEPR is the utility token for all networks Deepr Finance launches on. We currently have plans to support ShimmerEVM as well as IOTAEVM, once launched. For this reason, we are allocating some of the community liquidity incentives towards IOTAEVM which will be held by a multi-sig wallet, and we will be supporting both networks fully.

Passive income

In the future, users will be able to stake their DEEPR tokens to receive 50% of the fees generated by the protocol. Therefore, DEEPR token holders will have the ability to earn passive income from the lending markets with the intention of locking large percentages of the token during this process.

As we add more features to the platform, the token will see an increase in utility and value accrual. Owning DEEPR tokens also allows you to actively participate in shaping the protocol’s future through governance votes.

In the interim we plan to boost liquidity pool incentives on ShimmerSea shortly to provide an additional incentive to utilize your DEEPR towards supporting the protocol.

The process of lending

Lending on Deepr Finance works by allowing users to deposit supported crypto assets into the protocol and earn interest on their holdings.

Deposit assets: The user deposits supported assets. Each asset has its own interest rate, which is determined by the supply and demand of the asset on the platform.

Receive dTokens: When assets are deposited into Deepr Finance, users receive an equivalent amount of dTokens. dTokens are interest-bearing tokens that represent the user’s share of the assets they have deposited. For example, if a user deposits 10 SMR into Deepr Finance, they will receive 10 dSMR in return.

Earn interest: Users can earn interest on their dTokens in real-time. The interest earned varies depending on the asset and can change as the supply and demand of the asset changes (utilization rate).

Withdraw assets: Users can withdraw their assets and interest at any time by redeeming their dTokens. When dTokens are redeemed, the user receives the underlying crypto asset plus any interest earned.

Reinvest: Users can choose to reinvest their interest by depositing their dTokens back into Deepr Finance. This can result in compounding returns, as the interest earned on dTokens is automatically reinvested into the protocol.

The process of borrowing

By providing collateral, borrowers can obtain loans. This process is straightforward:

Deposit collateral: The borrower deposits a supported asset into a lending pool (which earns interest) and accepts it as collateral. The amount of collateral required has to be greater than the value of the loan the borrower wishes to receive.

Borrow assets: Once the collateral is deposited, the borrower can borrow other supported assets from Deepr Finance. The maximum amount a borrower can borrow is determined by their collateral ratio.

Repay loan: The borrower can repay the loan at any time, in part or in full. Interest is accrued on the outstanding balance of the loan in real-time, and is charged when the loan is repaid.

Withdraw collateral: The borrower can withdraw collateral, as long as it sufficiently covers the over collateralized debt position. If the value of the collateral falls below a certain threshold against the debt position, the borrower may need to add more collateral or repay all/part of the debt to maintain their collateral ratio and avoid liquidation.

Liquidation: If the value of the collateral falls below a certain threshold, the borrower risks being liquidated. When a borrower is liquidated, their collateral is sold to repay their outstanding loan balance and a penalty fee is paid to incentivise the liquidation process to safeguard the protocol.

Limits: During the launch phase of Deepr Finance, we are limiting borrowing to 50% of the collateral used, this is to both safeguard investors as they become familiar with the platform, and limit liquidations on the platform.

Outlook

We are thrilled about the launch of Deepr Finance and eagerly anticipate not only delivering an exceptional platform but also ensuring long-term value for all participants. Stay connected through our communications as we gear up for a live demo of the dApp on Discord and an X Space.

If you have any questions about Deepr Finance or want to learn more, join us on Discord.