Community Questions for the LEND Team | Find Answers to your FAQs! FEB/Mar 23
Welcome to our Q&A session with the LEND and TEN Finance teams! We asked our community for their questions, and today we’ll be answering some of the most popular ones. As a thank you, we will also be selecting one question to win $50 in $TENFI. So, without further ado, let’s get started!
Q1: With the market already filled with big lending competitors like Compound and Aave, with the leverage on rewarding lenders and borrowers who use Lend , what other leverages will Lend use to get ahead of the big competitors in the market?
A: Through LEND’s unique revenue sharing model, we are creating an ecosystem of true value for our users that sets us apart from the competition. Using $LEND tokens and TENLots, users will be able to earn up to a maximum of 50% of the protocol’s total revenue. Another benefit LEND has is the freedom to take advantage of lending or borrowing opportunities on any chain. Traditional lending platforms like Compound are restricted to a single chain, creating a dashed experience. LEND aims to unify this $50 billion fragmented market by making it possible to borrow and lend assets between various chains seamlessly with the click of a single button. Increasing the availability of borrowing capacity expands the lenders’ opportunity to earn interest. Borrowers will also benefit from having easier access to a wider choice of lower borrowing rates from multiple chains — again with a single click. All thanks to LEND.
Q2: How reliable is the backing provided on borrowed assets, and what actions are implemented to mitigate risks in a black swan event?
A: With LEND, we really wanted to ensure protocol safety from any adverse events. To protect our users and ourselves, we have adopted a risk-mitigated approach to all aspects of the platform. The LEND platform will still require over-collateralization. So borrowers will only ever be able to borrow less than the liquidity they have provided. The health of open collateral ratios is constantly monitored by the protocol, and if a borrower becomes under-collateralized, they will be subject to liquidation to make the original Lender whole again. This ensures optimal protocol health and secures lenders’ deposits so they can earn safely with peace of mind.
Q2 [Continued]: Also, how exactly does Lend Finance incorporate with Tenfi, is it just yield farming, or something more?
In addition to being able to participate in LEND’s revenue sharing model through $LEND tokens, TEN Finance users can also benefit from this model by staking their TENFI tokens to claim TENLots. By doing so, they can earn an additional 25% of all the protocol revenue generated by LEND. This means that users of both LEND and TEN Finance can earn up to 50% of the total protocol revenue generated by LEND, providing a significant incentive to participate in the ecosystem.
🎉Many thanks to @Ahmed_Y4seen for this great double-part question! You have won the $50 $TENFI bonus! Rewards will be distributed within 48 hours.
Q3: Can you explain the concept of cross-chain token lending?
A: Token lending using various networks allows users to compare the different borrow rates available on the respective network without transferring their original asset. For example, a user who has deposited USDT on BNB Chain wants to borrow BTC. The borrow rate is directly dependent on the borrow rates of the market. Now the user has the option to compare the different borrow rates available on the respective network without transferring their original asset. This creates freedom to borrow at preferred interest rates and unifies all chains as viable options.
Q4: When will the $20k testnet start?
A: The $20,000 testnet event will start once the new cross-chain contracts have been approved by auditors and we can be sure we’re doing all we can to protect all deposited funds.
Q5: What are the most important and immediate goals of LEND for 2023? What are the long-term sustainable value drivers for the LEND token?
A: Our primary goal is to ensure the cross-chain operability is secure for all users. Beyond that, we’re just aiming to create an ecosystem of real value extraction for our users. In terms of creating long-term sustainable value for the $LEND token, the ability to stake or lock your $LEND tokens means that all users can benefit from earning at least 25% of all generated protocol revenue. This provides real value extraction and utility for the token holders. There is no burning mechanism for $LEND at this time, as we are focussed on creating real utility and value from the tokens. As for CEX and DEX listings, we are exploring various options and will update the community when there are any developments.
✅ Conclusion!
We hope this brief Q&A answers many of the important questions the LEND community had. We’re can’t wait to start kicking off many exciting adventures together as our ecosystem prepares to launch this year!
❤️ Thanks for reading!
📚 Continue learning about LEND:
https://lend.gitbook.io/home/
👋 Thank you for all your questions! We hope we were able to answer them satisfactorily. Don’t forget to follow us on social media for updates and news about LEND and TEN Finance. Congratulations to the winner of the $50 TENFI prize for the selected question!
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