Preparing for Deepr Finance Launch: Key Details

Nakama is proud to announce that Deepr Finance is set to launch on January 11, 2024. Deepr Finance provides decentralized lending and borrowing, ensuring equal financial access through a community-focused token model and a commitment to long-term value creation.

Prepare for the dive

With the platform set to launch on January 11, 2024, there’s ample time to gear up and ready yourself for early participation, ensuring you secure the associated benefits. To take part, make sure your assets are on ShimmerEVM. Adhere to strict security measures, and for significant amounts, consider using a hardware wallet for added security.

Following the introduction of the LayerZero bridge on ShimmerEVM, we continuously observe liquidity on the chain. This plays a pivotal role in determining the assets we can safely incorporate into our platform. Presently, it appears that SMR and USDT will be the initial assets we embark on. (Learn how to bridge from other chains to ShimmerEVM in this tutorial from Blockbytes)

Please be aware that the platform will commence without community liquidity incentives. 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.

These rewards, paid in DEEPR, will be activated starting January 15, 2024. You can earn DEEPR rewards through collateral supply and borrowing from the protocol, with particularly lucrative incentives for community liquidity in the early stages.

Nevertheless, getting in before the activation of these rewards remains advantageous, allowing you to earn APR from borrowers and securing a favorable position for the onset of the rewards payouts.

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.

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)

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 in the form of dTokens.

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.

Outlook

We eagerly anticipate the upcoming launch of Deepr Finance, envisioning a smooth and successful introduction. Our confidence in its success is reinforced by the valuable testing and feedback we have received from our dedicated community. Together, we are poised to build not just a platform, but a dynamic ecosystem that promises lasting rewards and a bright future. Your involvement has been instrumental, and we look forward to the collective journey ahead.

Stay tuned for our communication updates, as we will be releasing a more detailed blog post on the day of the launch.

If you have any questions about Deepr Finance, don’t hesitate to join us on Discord.