Neku Finance is a decentralized and multi-chain lending protocol which was initially launched on Moonriver Network. Neku allows depositors to provide liquidity to money markets to earn a passive interest income, while borrowers can borrow any assets available in Neku platform under the overcollateralized mortgage lending model. Neku Finance will expand to other chains in the near future.
In Neku Finance lending protocol, lenders deposit assets to lending platform and will receive corresponding amount of nTokens. nTokens are interest-bearing tokens that are minted and burned upon “deposit” and “withdraw”. The nTokens also serve as deposit certificates in Neku lending platform. The nTokens’ value is pegged to the value of the corresponding deposited assets at a 1:1 ratio. (Number of nTokens exchange ratios vary in different assets) The nTokens in Neku Finance can not only be safely stored, transferred or traded, but also be used as yield farming tokens.