Staged deployment of cLend and governance
cLEND is a novel lending product created for the CORE ecosystem and controlled by the coreDAO governance token.
A staged deployment of cLEND and the upcoming on chain governance will give the community time to test out each feature on Ethereum Mainnet while minimising risks of deploying new contracts and transferring ownership to on chain governance:
- Migration of coreDAO and initiation of cLEND:
Users can migrate coreDAO LP vouchers using the migration interface on corefinance.eth. At the same time the cLEND product will activate and receive $1,000,000 DAI of the total borrowable assets to lower exposure in case of a bug. (This is happening upon publication. So, now!) During this stage, users may experience transactions failing since not all coreDAO/CORE is borrowable. As the migration of coreDAO LP vouchers continues, cLEND will receive more and more borrowable assets and the lending experience should become more fluid.
- Completion of migration and full activation of cLEND
Once the majority of vouchers have been migrated to coreDAO and the cLEND market is working as intended the last stage will start.
- Governance activation:
Voting power will be added to staked coreDAO tokens in the vault and each smart contract will be transferred individually to the governor contract. This will transfer full control to the community via coreDAO and the governor contract.
coreDAO’s lending module is called cLEND. It launches with a new UI dedicated to lending and governance. This new update allows users to take out a loan against CORE and coreDAO tokens. coreDAO tokens can be used as collateral on cLEND with a value of 1 DAI per token while CORE’s maximum collateralized position per token is 5,500 DAI. The site is hosted on IPFS and can be accessed using an IPFS compatible browser.
As with all new code and products, it may be more risky to use in the beginning until everything is checked and live.
cLEND is fully controlled by the DAO which can adjust its lending rate, collateral options and borrowing power.
The lending market is set at 20% interest rate for CORE and coreDAO with the DAO expecting to adjust this rate in the first governance vote this month.
How to borrow against CORE or coreDAO
Navigate to beta.corefinance.eth and connect your wallet. The right side of the UI displays the lending section with a borrow and repay tab.
First you need to select which collateral you want to borrow against.
You can choose CORE or coreDAO.
Afterwards you can select how much DAI you would like to borrow against your collateral or click the MAX button to take out the maximum loan possible against your collateral.
Click Deposit Collateral & Borrow.
After you approved your transaction and it has been confirmed, you will see the borrowed DAI in your wallet.
The left side of the interface displays important stats about your debt position. The open position section refers to your personal borrowed position while the Loan Stats section gives you information on the Interest rate and Liquidation threshold of the lending module.
On the bottom of the interface you can find your position with essential information. This section can expand in the future when more collateral options are introduced to show each one of your open positions.
Contrary to other lending products, liquidations on cLEND loans are not exposed to price fluctuations. The only parameter to observe is interest. With a liquidation threshold of 110% on your loan and a 20% yearly interest rate, you will need to repay your interest before it reaches the threshold.
For example if 1 CORE is deposited as collateral and the maximum loan of 5500 DAI is taken out. Interest will start to accrue at 20% a year. That is 1100 DAI yearly or 91.66 DAI a month. The liquidation threshold is 110%, in our example it would be 6050 DAI. You need to monitor this value and repay interest before the loan accrues 550 DAI and reaches the liquidation threshold of 6050 DAI, otherwise your position will be liquidated.
How to repay your loan
Navigate to beta.corefinance.eth and connect your wallet.
Your loan will be displayed at the bottom of the interface.
Click the repay tab.
Select the token which you want to use to payback your loan.
After the transaction is completed a button will appear to claim back your collateral. Click the button and confirm the transaction.
If you want to see your recent interactions with cLEND you can click on your wallet in the top right corner.
The community has built a forum to provide everyone with the ideal infrastructure to engage in productive and focused discussions regarding governance of coreDAO.
coreDAO Forum: https://coredao.info/