Wanlend: the Protocol for Lending and Borrowing Crypto Assets across Blockchains
In this tutorial, we will introduce Wanlend as the Dapp for lending and borrowing crypto assets across different blockchains. Wanlend is a decentralized, crosschain-enabled money protocol. To earn interest, users can deposit their crypto assets, e.g., Wanchain-wrapped BTC, ETH, XRP, USDT, USDC, WAN, etc., to the protocol. At the same time, the supplied assets can be used as collateral, giving users the ability to borrow other assets across different blockchains without selling their original assets.
0. How Do I Start?
At the moment, WanLend is deployed on the Wanchain blockchain. To access the WanLend platform, the users can choose one of the following Wanchain wallets. Please click one of the following wallets to get the tutorial for using the wallet.
After setting up the wallet, the users will need some WAN coins as the gas and assets for lending. The Wanchain crosschain bridge is a great way to wrap BTC, ETH, XRP, etc., to Wanchain. Please check this video for guides (Wanchain Crosschain Guide). For new incoming crosschain transactions, the crosschain bridge will send some initial WAN gas to the users, and this gas should be enough to cover several transactions. To get more WANs, the users can go to wanswap.finance, a uniswap-like DEX on Wanchain.
Once the users have WAN gas and assets ready, they can go to WanLend.Finance to get started. Click “Connect Wallet” as shown below to connect the wallet to the Wanlend Dapp.
1. The User Interface
This is the user interface, where each element is explained by text. The following sections will go through the lending and borrowing functionalities by interacting with the interface.
2. How Can I Be a Supplier?
In Wanlend, the suppliers deposit assets in the protocol and earn interest as the return. The deposited assets can also be used as collateral to borrow other assets. The steps are as follows:
- Make sure that the asset is on the “Supply Markets” list.
- Click on the asset that you intend to supply.
* For example, we choose WAN to supply
- Specify the amount to be supplied
The pop-up window shows the following. The assets have to be “Enabled” for first-time users by clicking on the “Enable” button on this page.
* Fill in the amount and click on “SUPPLY.” The supply rate is the interest the users can get (without WAND). The distribute rate is the ratio between WAND values (USD) and the supplied asset values (USD). Basically, users who supply assets will be rewarded not only in lending interest but also in WAND tokens.
- A transaction confirmation window will pop up, and the users will need to sign
- After supplying assets, the “Supply Balance,” “Net APY%,” and “Balance” in the supply market will change on the interface.
3. How Can I be a Borrower?
Wanlend loans are over-collateralized by user-supplied assets. Therefore, to take out a loan, the users must first put other assets as collateral.
- Supply assets as collateral
We use “WAN” coins as collateral as an example. After supplying WAN, the users will need to toggle the slider shown below to use the assets as collateral. The percentage underneath is the “collateral factor,” meaning how much you can borrow if you supply this asset. For the WAN coin, the collateral factor is 0.5. In this case, for every 100$ WAN supplied, the users can take out 50$ loan at maximum.
- Enable asset as collateral
Following the previous step, when clicking on the slide toggle, the users will see a pop-up window to ask for confirmation of using the asset as collateral.
- Confirm “USE AS COLLATERAL”
- Choose the asset to borrow from the list
For example, we choose WAN from the list.
- Specify the amount to borrow
In addition to manually specifying the borrowing amount, a shortcut of borrowing 80% of the limit (80% * collateral factor * supplied assets) is provided. For 100$ WAN (collateral factor 50%) supplied, the 80% button will automatically fill an equivalent of 40$ borrowing asset value. The users will also see the following:
- Borrow Rate (Interest rate to be accrued)
-Distribute Rate (WAND token award APY)
- Borrow Limit Used (Percentage of maximum allowable loan)
- Confirmation after clicking “BORROW.”
- Congratulations, your loan has been successfully filled!
4. Summary
This tutorial introduces the WanLend lending and borrowing functionalities. We encourage the users to learn the basics of lending platforms and assess risks before attempt borrowing. The WanLend team has taken necessary steps to lower the risks to the protocol by lowering the collateral factors of small-cap assets compared to V1. However, the final control is in the users’ hands.
About WanLend
Wanlend is an autonomous, decentralized money protocol that allows crypto-asset users to borrow and lend digital assets on the Wanchain blockchain.
