Introduction to Makai
In this article, we will share the great point and risks of makai and the future prospects of Starlay.
What is Makai?
Makai means “devil’s world” in Japanese, a term used especially in the Defi community to describe a highly volatile market like gambling. Contrary to the original Japanese meaning, however, Starlay’s Makai is a very good and useful functionality for users.
To make it short, Makai is a loop function that allows the user to earn a large number of LAYs by repeating the deposit and borrowing.
What does Makai bring to you?
The advantage of makai is that it can automatically increase the efficiency of earning LAY. This will be a very welcome feature for those who have been conducting their own loops and getting a lot of LAYs by starting the loop by yourselves from scratch.
In addition, since Makai’s loop automation is only implemented in the same currency, there is no risk of liquidation due to currency volatility.
Furthermore, the table of indicators such as Health Factor, Net APY, Reward APR, etc., which users can easily see before the Makai begins, is also excellent. Starlay’s dev team is providing a simpler and more user-friendly UX.
What’s the risk of Makai?
Makai’s loop does not have liquidation risk due to currency volatility, but it does, of course, carry liquidation risk. In order to avoid the liquidation, It is important to note Net APY. In a loop, there will naturally be a deposit APY and a borrow APY, so if the borrow APY exceeds the deposit APY, it will be liquidated at some point.
Therefore, to adjust the Net APY, it is necessary to deposit separately from the loop. Plus, You can also check the risk easily with Health Factor.
For more information, please visit our docs.
Upcoming schedule of Starlay
Starlay has been growing without stopping since its release Feb 28th and quickly took the #1 spot in lending protocol on Polkadot’s ecosystem.
The development team is still making improvements every day at a tremendous pace and is committed to the expansion of the Astar ecosystem.
As Neo, CEO of Staraly, recently announced, the most recent implementation will be ve tokens, and you can expect another exciting announcement just before the upcoming IDO.
Although the estimated price of LAY token has increased from 0.1 to 0.3, our team is convinced that the future of Starlay is an even more valuable ecosystem than now. We hope you will continue to join us and enjoy our progress.
About Starlay
Starlay is a non-custodial lending protocol on Astar Network. Depositors can provide liquidity to earn interest as a stable passive income, while borrowers can leverage their assets without selling them out.
Astar Network aims to be the biggest hub for the multi-chain era by bridging with Ethereum, Cosmos, and others. With Starlay Finance, the Astar ecosystem will be a huge marketplace for storing all kinds of tokens on any kind of chain.
