Beamswap introduces first-ever Moonbeam-based lending platform
A new milestone in Moonbeam-based DEX books — lending and borrowing are now live on Beamswap.
In the latest addition of exciting new features to Beamswap, we’ve partnered with Ola Finance to provide lending and borrowing of crypto assets on Moonbeam.
This makes Beamswap the first DEX on Moonbeam Network to include lending and borrowing to its (already broad) array of DeFi services.
Beamswap users, Moonbeam fans, and Web3 DeFi-ers now have two reasons to celebrate. First, they can earn passive income with interest gained from lending their assets. And second, they can expand their portfolio and borrow even more crypto assets from the Moonbeam community.
Beamlend, Beamswap Lending Network
The lending and borrowing service is provided by the Ola Finance lending protocol and adapted to the Beamswap DeFi platform. This marks the latest expansion of Beamswap usability and improved relevance of the Moonbeam Network as a whole.
Click on the link below to get direct access to Beamlend. 👇
What does Beamswap Lending Platform provide?
There are a few reasons why you should bookmark the site.
Lending assets to earn interest
By supplying crypto assets to the Moonbeam network, you can earn interest in APY.
Borrowing assets to expand portfolio
Once you supply assets and enable them as collateral, you can borrow tokens from the supported markets. The borrowed amount is limited to the collateral potential of the value of supplied assets.
Supported digital assets
At the moment, you can lend or borrow the following assets on the Moonbeam Network: GLINT, bUSD, USDC, ETH, BNB, and GLMR.
At the launch, the assets will follow the parameters below:
In the future, more crypto assets will be added as per community requests and governance votes.
How to use Beamlend?
Go to http://lending.beamswap.io/beamlend, connect to the network with MetaMask, Wallet Connect, Coinbase Wallet, and confirm the connection.
Before using the service, you should first supply tokens to the network — the easiest way is, again, via your wallet.
Supply liquidity and withdraw assets
After connecting your wallet, the interface will show you details about the network, your wallet balance, supply and borrow balances, net APY, etc.
On your first visit, you will see a blank dashboard with empty balances. Of course, this will change as soon as you start using its features.
The Net APY rate, displayed in the middle is the difference between the APY you earn for supplying tokens to the network and the APY you pay for the loans taken.
So if you should earn more interest from your supplies than you should pay for borrowed assets, the Net APY will be positive and negative if your borrowed assets exceed your supplies.
To deposit assets for liquidity and withdraw them, go to the Supply Markets section. The supported tokens come with information on their APY and their balance in your wallet — only counting the tokens that are not locked in other obligations or collateralized for borrowing.
To supply a token, click on it, Approve the transaction in MetaMask, and complete the deposit.
You can withdraw your supplied assets at any time. To do so, simply repeat the process above, but this time, in the popup window, change to Withdraw tab and input the amount you want to take out.
❗️ Note: If you supplied your tokens to be used as collateral for a loan, you won’t be able to withdraw the full amount right away.
On Beamswap Lending Network, you can also supply liquidity as collateral for a loan. You can borrow any type of asset listed, as long as you supply some of your own assets as collateral first.
In the Supply Markets section on the left, go to the token you wish to use as collateral, and simply enable this feature using a toggle bar next to it.
Once you supply liquidity tokens and enable them as collateral, you can borrow more tokens against the asset.
Now, go to the Borrow Markets section on the right, click the token you wish to borrow, and enter details in the pop-up that appears on the screen.
Input the amount of tokens you want to borrow or simply go with 75% of the limit. This safety feature prevents you from borrowing above your asset limit and reduces liquidation risk — we strongly advise you to use it.
You can pay back your borrowed assets at any time.
To repay an outstanding loan, fully or partially, go to the Markets page, and click on the relevant token in the Borrow Markets section. Under the Repay tab, choose the amount to repay, and pay off the loan plus accumulated interest.
❗️ There are a couple of things to note when it comes to borrowing:
- Borrowing is enabled by over-collateralization. In simple terms: before you take a loan, the provided collateral must be of a higher value. So, how much can you borrow with a given amount of a collateral asset? Multiply the asset by its collateral factor — the factors for every supported asset are listed under the Markets tab.
- Loans on the Beamswap Lending Network grow their interest rate over time by compounding accumulated interest with each network block. Therefore, to close your borrowing position, you will need to repay more tokens than you borrowed in the first place.
- You should always pay attention to your liquidation limit. If you borrow more than the liquidation potential of the amount supplied, up to 50% of your position can be liquidated. Make sure you account for volatility by keeping a margin.
About Ola Finance
For the latest addition to the Beamswap DeFi hub, we’re very excited to have partnered with Ola Finance.
Ola Finance has created a Lending-as-a-Service platform where anyone can create their own lending network in just a few clicks, based on the tokens they support and the target audience.
Ola’s inclusive lending protocol improves the DeFi space by allowing creators to list assets without the need to deal with cumbersome and pricey governance schemes, nor to supply deep liquidity, high trading volumes or defy high volatility. It caters to both creators launching their lending and borrowing network (DAOS, VCs, whales, even influencers) and lenders/borrowers that seek access to lending services across multiple blockchains from one standardized UI.
Ola-backed instances are governed and controlled by creators and support all kinds of assets, including early-stage governance tokens, stable coins, and even exotic receipt tokens.
Earn lending-based passive income on Moonbeam
Thanks to Ola Finance support, Beamswap has become the first DEX on Moonbeam to provide lending and borrowing of crypto assets.
Go to http://lending.beamswap.io/beamlend and lend away.
Beamswap is a DeFi hub built on the Moonbeam Network featuring a decentralized exchange (DEX) and an automated market maker (AMM). It gives users the freedom of adding liquidity, performing peer-to-peer transactions, swapping fungible tokens, and earning passive income from staking and yield farming. Beamswap will support the growth of Moonbeam’s ecosystem and act as a launchpad for new projects developing on the network. Our team’s mission is to aid in the multichain vision to serve as a host for projects on the Moonbeam & Polkadot Ecosystem while working alongside projects with existing infrastructure looking to bridge into the multichain universe.