HECO AMA Series Recap — LendHub
Series №004
Guest: Jason, LendHub Technical Lead
Host: Gabriel of HECO
Introduction
Gabriel: Today with us we have. LendHub, a decentralized lending platform of HECO. It accepts many Heco chain assets.Users can get incentive token LHB by borrowing assets from LendHub.LHB will help the assets transfer and value transfer of heco chain assets by accepting the mortgage lending of heco assets.
Jason: Hello everyone, I’m Jason, the technical lead of LendHub. I am very happy to be a guest in the Heco community.
Gabriel: Welcome! Now that he is here, i’m gonna mute the community so we can proceed faster. Don’t go anywhere guys, enjoy this with us. Welcome, Jason. Could you tell us more about your project?
Jason: LendHub is a decentralized lending platform based on Huobin ecological chain, which supports the pledge lending of multiple currencies on the Heco chain. Users can obtain incentive token LHB reward by lending and borrowing on LendHub. LHB will serve as the hub of the LendHub platform, and realize the mutual accommodation and value transfer between Huobi ecological assets by supporting pledge lending for mutual accommodation of assets on the Huobi Ecological Chain.
Gabriel: When you done answering a question, pls kindly drop the 🚀 emoji.
Questions and Answers
Q1
Gabriel: What does LendHub do?
Jason: Our LendHub is essentially a decentralized lending platform, and it is our goal to effectively meet the real lending needs of users. At present, LendHub has supported 11 popular property loans on Huobi Chain. Users can mortgage and borrow any currency and receive LHb token rewards. The community governance function will be opened in the later period, making LendHub a community governance project.
Q2
Gabriel: What is the mission and vision of the LendHub project?
Jason: LendHub will always focus on the development of lending platform. Although we are now based on Heco in terms of capital volume and user scale, our goal is more than that. We hope that in the near future, we can catch up with the leading lending platforms like Compound and AAVE, and become one of the leading lending platforms in terms of capital volume.
If a lending platform wants to become the head of lending, it is bound to develop multi-chain and blossom in various public chains. And we hope to provide users with the best service and the best experience, so that users can borrow more high-quality assets on LendHub, and deposit users can get higher deposit income.
Q3
Gabriel: What are the similarities and differences between Lendhub to other projects in the field?
Jason: LendHub is similar to Compound because of its lending model and token distribution mechanism. The difference is that Compound is issued on Ethereum, while LendHub is issued on Huobi mainnet. So later, LendHub was called Compound on the Huobi ecological chain Heco.
Before, many users asked us about APY, and other algorithmic products. Why are they so special? It’s not that ours are special, but that users doesn’t understand the current loan mining products. The current rules for lending products in the market are consistent. Later, we will launch functions such as liquid mining and community governance to create differentiation from other lending products.
Q4
Gabriel: What are advantages of LendHub products?
Jason: The first is about security. LendHub’s smart contract code has passed security audits, all open source and verification. LendHub has a strict risk control management mechanism, so users can borrow with confidence. In addition, we will set up a risk deposit. When the principal of currency depositors is lost due to delayed liquidation under extreme market conditions, the risk deposit will be called to protect the rights of the currency depositors.
The second is efficiency. LendHub lending is completely decentralized without intermediaries. Lending relies on smart contracts, making lending more convenient. Heco is a decentralized high-performance public chain, with an average of one block every 3 seconds, with a TPS of 500+. The high-performance public chain allows the loan to be completed in seconds, realizing lightning lending, and we have improved the user’s loan operation experience to make the user’s borrowing and repayment process more efficient and faster.
Third, compared with other public chain borrowing products, the handling fee is lower. The transaction fee on Heco chain is as low as 0.001U each transaction, which is 1/140 of similar public chain and 1/1800 of ETH public chain. Compared with Ethereum’s high transaction fee, LendHub users only need to pay very little GAS fee to mine LHB.
Fourth, better meet the needs of users. Continuously meeting customer needs, we have been focusing on the addition of a lot of high-quality hot assets。For example, by launching MDX, Bags, etc., users of this currency can have more choices for deposit and loan. Users with LendHub can obtain high profits, and users in need can also borrow in time.
Gabriel: Wow! I love your preciseness in answering our questions
Q5
Gabriel: On the DeFi lending platform, the security of assets is extremely important. What has LendHub done to protect the security of user assets?
Jason: 1. Our contract code has been open sourced, and the contract has passed the audit of KNOWNSEC and NONEAGE. The audit of SlowMist is in progress, which should be down soon.
2. Considering that some users may inadvertently trigger liquidation and cause losses due to their lack of personal understanding of the mechanism, we have also added more striking risk reminders on the front page, and increased the maximum safety value and the maximum withdrawal/borrowing limit entered manually, so as to ensure the safety of users’ assets when they participate in lending.
3. Considering that extreme market conditions such as 312 may still occur in the future, resulting in delayed liquidation and the risk of principal loss of deposit users, we will set up risk margin in the future to guarantee the asset safety of deposit users.
Q6
Gabriel: What has LendHub done in terms of the breakthrough and innovation of products?
Jason: (1) Equipped with the pioneering spirit, willing to try, and actively innovating, as a lending platform on Heco, LendHub is the first lending platform to launch tokens of high-quality projects on Heco such as MDX and Bags. Meeting the needs of users and providing better services to users is the goal we have been pursuing.
(2) It opens the function of LP mortgage lending, so that users’ LP assets can not only compound interest mining but also mortgage lending to other assets, which greatly improves the mining yield of users’ LP assets. Besides, users can also lend out other assets in LendHub after deposing LP assets, which also greatly improves the utilization rate of users’ funds.
(3) In terms of product iteration, LendHub is full of “craftsmanship” spirit. Since the platform was launched on January 14, the team has continuously optimized the user experience and upgraded the products for 14 iterations. At the same time, LendHub has made efforts to expand the global market and reached a strategic partnership with ChainLink Prophecy.
Q7
Gabriel: In the current bull market, how can users cleverly utilize LendHub lending tools to improve the utilization of funds or obtain a mining interest as high as possible?
Jason: (1) Shorting by borrowing currency. At present, there is no financial derivatives trading platform in Huobi chain ecology, so when users want to short a certain currency, they can only recharge the currency into Huobi in general to short. However, if users make reasonable use of LendHub, when they predict that the price of a certain currency will fall, they can borrow the currency and sell it at a high price. When the currency falls, they can buy it at a low price and then return it to LendHub. In this way, they can short a certain currency.
(2) Single mining by borrowing currency. At present, there are a lot of various DeFi projects in the Huobi ecological chain. Whenever a “new mine” is online, the income of the first mine will be very high in general, and the gap between the mining yield of different currencies will be very large. How do you ensure that you maximize your mining income at this time? Quite simply, comparing the mining yield of each asset, and then borrowing the currency with the highest mining efficiency through lending and borrowing at LendHub to participate in new mines, so that you can get the maximum yield.
(3) Borrowing currency to participate in liquidity mining arbitrage, for example, user A only has USDT in hand, and the income saved will be very low. However, if part of USDT is used as collateral in LendHub and MDX is lent to participate in MDEX’s liquid mining, he can get 400% annualized return and LHB mining reward. Subtracting the fickle losses of liquid mining and the interest on borrowing money is the final real return.
Cross-market future-spot hedging arbitrage, this is mainly through hedging with the contract market to arbitrage the funding rate. For example, when the contract funding rate of a certain currency is negative, and the funding rate can be obtained by ‘going long’, you can borrow the currency to go short through LendHub, open long perpetual contracts, carry out hedging arbitrage, and earn daily users Contract funding rate.
Q8
Gabriel: Can you give us a brief introduction to the DAO community governance plan? What impact does this program have on the LendHub ecosystem?
Jason: LendHub will use 20% of the handling fee for LHB repurchase and destruction, and 10% for HT repurchase and destruction. The repurchase will be carried out within one week, followed by a daily repurchase, automatically executed by the contract, and the destruction address will be announced at the same time.
The DAO community governance program can guarantee the voice and participation of participants in the LendHub community, and can intuitively display the opinions and contributions of the community, which is conducive to the prosperity and development of the Heco ecosystem.
Gabriel: With that we have successfully completed the segment. Your answers were quite expository and simple. Thanks. Now i’m gonna open the group so the community members can the advantage of asking you their questions.
Live Question Session
Q1: What is the Token Name Of the Token LendHub project? And what is Each Token LendHub For?
Jason: Our token name is LHB, and LHB can participate in our DAO governance voting and become a holder of LendHub.
Q2: While you build your project, do you take into account community feedbacks and demands?
Jason: At that time, we were always paying attention to the voices of the community, and we actively listened to and improved the suggestions of the community.
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