Introducing NillaConnect: The Universal P2P Leverage Optimizer

6 min readMar 17



NillaConnect is an omni-chain, single token liquidity provision, yield aggregator and leverage optimizer. We position ourselves as a universal P2P leverage layer which allows any dApps to leverage their positions seamlessly across all networks to fully unlock cross-chain DeFi possibilities.

The leverage optimizer is a key feature built on top of the NillaConnect yield aggregator that enables users to boost their APY in NillaConnect by enhancing liquidity efficiency. This allows users to lend and borrow with higher capital efficiency, as well as earning high yields across DeFi protocols.

Our focus — Enhancing Capital Efficiency Leading to SUSTAINABLE Improvement of Yields in YOUR favorite assets

Users always look for higher yields. One huge factor to consider are the riskiness of the assets involved in their investments. Risky assets may result in a total loss even if the yield is attractive. Less risky assets, on the other hand, have high borrowing costs, while earning tiny yields. Mid-to-low risk assets might actually be the safe haven in DeFi afterall. New entrants to DeFi often run to assets with mid-to-low risk assets as they tend to be more well-known, adopted, accessible, and of course, less risky.

Along with the current model of lending/borrowing where the utilization rate of a pool is always kept below 100% to ensure liquidity for those who wish to borrow more or withdraw their funds. With the utilization rate below 100%, it means that there are liquidity in the pool that are not utilized to create any value. It also means there are more lenders than borrowers in terms of dollar value, which leads to lenders sharing the thin yield obtained from the borrowers. Hence, there is a huge gaping spread between the borrow and the supply APY. This means the borrowers are incurring high interest rates, while the suppliers are earning meager APY.

So how could be improve the yields while ensuring that users are able to still only interact with this category of assets?

Outright improving the yield

To improve the small yield that this category of assets provide, you will need a larger amount of funds. This is the concept of leverage — borrowing funds to complete actions to magnify the yield earned. A 10% gain on $1,000 is less than a 2% gain on $10,000. Therefore, having more funds to play with would result in higher total yield. However, the problem with this is that the current model of borrowing is inefficient. That leads us to the second point.

Reducing the cost of capital

To solve this problem, a P2P model can be implemented. This means that borrowers and lenders are matched together in an orderbook fashion resulting in the lenders’ liquidity being fully utilized, with a predetermined rate in the middle. There does not have to be a huge spread between lenders and borrowers resulting in better rates for the counterparties.

These 2 components combine to create NillaConnect where we improve the profit margin and ROI of each user for mid-to-low risk asset investments and strategies. Just like how a normal business would act to increase their profits: they can either increase the revenue and/or decrease the cost.

What we offer

1. More capital efficient lending and borrowing

Be sure that your capital is being put to work to the max when we match you up with a counterparty.

2. Better rates for both sides of the market

With a more capital efficient model, borrowers will pay a less rate, while lenders are earning a higher rate, tightening the spread to near zero, creating a win-win situation. All aspects are the same as the underlying protocol, but we provide better rates — hence it’s better off to use us.

3. Automated flexibility

Our system handles the hassle of connecting the counterparties to each other or each of them to the pool. All the users have to do is simply click supply or borrow.

4. Cross-chain interoperability

Users are able to collateralize and borrow cross-chains to use it as leverage in strategies on any networks they desire.

5. Boost yields higher with the power of leverage

With the focus on mid-to-low risk assets, the APY on those assets are naturally low due to its risk nature. We made the rates more capital efficient with P2P, and users can boost their earnings even more with higher leverage, to ensure that they are extracting more yield from mid-to-low risk single asset strategies.



NillaConnect identifies and helps you discover amazing opportunities that may lie on a different chain. We also help you to grab those opportunity without hassle. In other words, we turn complex and lengthy actions into a few clicks. Stake, redeem, collateralize, deposit; whichever actions you prefer, with any assets you prefer, on any network you prefer, with the protocol you prefer in just a few clicks — simple as that.


For a seamless cross-chain experience, we have partnered with LI.FI, a bridge and DEX aggregator that can route any asset on any chain to the desired asset on the desired chain, providing a remarkable UX to their users. This enables:

  • Seamless Cross-chain Swaps

Simply click on the tab on the side of your screen to bring out the swap interface where you can swap your funds to any network you wish without having to leave the interface so you can continue your journey seamlessly.

  • Cross-Chain Yield Farming Strategies

Keep track of yields across multiple networks, deposit your funds in the best way possible, and find the most trustless and cheapest bridge with enough liquidity to deposit into the highest yield generating protocols.

Simply select your desired network and vault, and our system will handle the laboring process behind the scenes to help you successfully access your desired vault effortlessly.

  • Omni-Chain Money Markets

Users are able to borrow on different networks with the implemented relayer that enables dApps to communicate across chains to allow users to collateralize, borrow, and repay their loans across various networks.

Simply select the assets you want to borrow, on which network, the asset you want to collateralize, and you are all set. Our system will handle any logistics related to moving funds across chains, communication, and swaps.

Gas Consumption

Gas is obviously something to consider when interacting with dApps, especially when there are large amounts of transactions here and there. Users can set their maximum gas limit in the interface to ensure that the transactions are gas efficient and they are not incurring high amounts of gas fees which could deteriorate their yield. The maximum gas limit is one of the conditions set in place to stop the matching engine from matching more orders to keep the gas fees in check.

*Note: that all of the concepts above will be explained in detail in the NillaConnect documents releasing soon, so please stay tuned.


We have a vision of DeFi mass adoption in the near future with the catalyst being user-friendliness, knowledge, and interoperability. However, the one key factor that makes DeFi attractive is the yield. We believe that if all of the key factors can be addressed, DeFi would become mass adopted. That is why NillaConnect was created to connect the fragmented DeFi world into one by utilizing the open-source nature of DeFi and DAO infrastructure.

Launch Date:

  • Closed Beta 01: Our closed beta will be launched on April 2023
  • Closed Beta 02 / Public Beta: Q2 2023

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The universal P2P leverage optimizing layer connecting DeFi into one. Powered by LI.FI 🦎