Editors Note: This article comes fromWebX Labs Daily (ID: gh_3bc595acebaf), reprinted by Odaily with authorization.
WebX Labs Daily (ID: gh_3bc595acebaf)
, reprinted by Odaily with authorization. Recently, Polkadot’s RococoV1 testnet announced that it has successfully restarted. If everything runs smoothly, the parachain slot auction will actually start. At this critical moment of the parachain slot auction, many projects in the Polkadot ecosystem can’t wait, including Bifrost, ChainX, Crust, Phala, etc., have already geared up. It is foreseeable that the limited number of seats determines the opening of the parachain slot auction. Stage a money race. secondary title According to the rules, the parachain slot auction adopts a candle auction. The auction process is divided into two stages: a safety period and a random period. When the auction starts, the auction will first enter the candle burning safety period. The auction is free and will not end , when entering the random period, the auction will be closed at any time according to the random number on the chain. At the critical moment of the auction, whoever pledges the most DOT or KSM will be able to rent the auction slot. It can be said with certainty that the pledged amount will be Become the key to the success rate of the slot auction. So if this is the case, where does the money used by the project party for pledge come from? In fact, driven by the potential value of Polkadots ecology and its technical framework, many lending and pledge services have been prepared for Polkadots slot auction in advance. Especially the lending service, which provides huge support for Polkadot slot auctions. Compound Decentralized lending has always been one of the three carriages of decentralized finance. It refers to matching borrowers and lenders through decentralized lending agreements, and immediately transferring assets after pledge confirmation to complete the lending action. At present, most lending platforms adopt the over-collateralized lending model. Taking the decentralized lending platform Compound as an example, borrowers and lenders trade through a liquidity trading pool. The borrower deposits the money in the pool to get interest, and the lender uses his own Bitcoin/Ethereum and other currencies to lend out stable currency from the pool to cash out. The interest rate of each loan and borrowing is determined by the liquidity of the pool, that is Fluctuates by the ratio between the total amount of money offered by lenders and the total amount demanded by borrowers. At present, with the continuous development of DeFi, people are also constantly exploring equal loan mortgages or smaller amounts of mortgages to better serve users who need funds. Konomi secondary title Equilibrium New and old players in lending services Bandot According to Debank.com data, the current decentralized lending market has reached a scale of 10.3 billion US dollars, and lending platforms such as Compound and Maker account for 70% of the total lending volume, showing a very obvious magnitude gap. Here we mainly introduce a few lending projects around Polkadot. As the first to seize the blue ocean traffic of Polkadot lending, and a one-stop platform integrating transactions, lending, and asset management, the original intention of Konomi was to allow financial applications on Ethereum to seamlessly connect to the Polkadot ecosystem, providing users with a A complete asset management experience. The business field focuses on lending, creating Trade, Bank, and Wallet. While providing users with a higher liquidity staking reward scheme, it also tracks positions in different DeFi protocols and provides users with a one-stop DOT asset management experience. As the underlying lending protocol of the Polkadot ecosystem, Konomi provides a native solution for the liquidity of Polkadot assets. In recent news, Konomi Network announced that it will choose Darwinia, a heterogeneous cross-chain project, as a bridge between Polkadot and Ethereum assets, and will also be able to access assets of other chains in the future, including Tron, EOS, NEARProtocol and other heterogeneous areas blockchain. Bandot is a Polkadot unsecured lending DeFi aggregation platform. A composite DeFi platform consisting of stable currency, unsecured lending system, vAMM liquidity mechanism and other features, unlocking pledged liquidity outside of Ethereum, is exploring to become a Polkadot unsecured lending platform. According to the official introduction, this new attempt of unsecured lending mainly uses the mechanism of credit guarantee, allowing users to borrow without collateralizing actual assets, that is, users can store the tokens they hold in the lending fund pool, and make money for other borrowers. Credit guarantee. This method of unlocking assets greatly releases the liquidity of user assets, and users can earn benefits from the system while maintaining DOT in their hands. This attempt by Bandot is very cutting-edge. If the experiment is feasible, it will become a benchmark project, thereby opening up the unsecured lending market and attracting more people to participate in the new experience of lending income. Regarding the liquidity release of the pledged token scheme, Acala proposed to pledge DOT through Acala. In addition to obtaining Staking benefits, users can also obtain the pledged equity token LDOT. LDOT can be used for transactions, pledged loans, etc. asset problem. In addition, Stafi and Bifrost protocols are also providing similar services. The basic logic of the scheme is roughly the same, mainly that the user pledges the Pos token DOT to a special Staking smart contract, and the contract issues an equivalent amount of xDOT to the user account , here xDOT is equivalent to a bond, which can not only circulate in the market, but also solve the problem of token liquidity. As more and more innovative combinations of such pledge tokens will collide with different bond financial markets, it will also be a new hot spot this year.WebX Labs Daily (ID: gh_3bc595acebaf)
Under the situation of fierce competition, the amount of pledge will also increase sharply. Therefore, as a project party, increasing DOT holdings is a necessary nuclear weapon for them to sprint slot auctions. According to Subscan information, the number of locked DOTs currently exceeds 680 million, which is close to 70% of the total. In other words, only 30% of DOTs in the market are truly liquid. And this 30% is the bargaining chip for each project party to compete for. Due to cost considerations, it is impossible for the project party to purchase all DOTs in the market at its own expense as pledge chips when bidding. Instead, it will adopt certain incentives to encourage market users to participate in this pledge activity. But this may not be enough. After all, in most cases, users in the market have limited funds, and once they participate in the pledge, it means that the assets are locked and liquidity cannot be obtained. Users face the risk that the currency price will rise or fall and cannot be sold. And because the income from staking to the project party is far less than the income from direct staking, it also reduces the willingness of users to pledge to a certain extent.
This project is the first decentralized lending platform and cross-chain DEX platform on Polkadot that unifies asset pools of different chains. Users can use ETH to borrow DOT and other on-chain assets through Equilibrium, and vice versa. In terms of ecological roles, Equilibrium includes traders, lenders, borrowers and its unique bailsman guarantor, which is closest to the core role of traditional financial institutions, giving users a more convenient operating experience. Due to the combination of lending and cross-chain decentralized exchanges, Equilibrium allows people to lock collateral in a public chain project, and at the same time obtain mortgage loans on another public chain, maximizing decentralization and the lending market together. In the future, there is an opportunity to become a master of cross-chain lending.
