Core Features
Learn what sets Lendr Network apart from all other stablecoins.
Lendr Network vs Stablecoins
Lendr Network offers a unique mix of features allowing users to compound the returns from RWA stablecoins, 0% interest defi lending, and crypto exposure at the same time.
| 🏅 Lendr Stablecoins | Centralized Stablecoins | Decentralized Stablecoins | |
|---|---|---|---|
Inflation Proof: |
✅ |
🚫 |
🚫 |
0% Interest Loans: |
✅ |
🚫 |
🟡* |
Over-Collateralized (110%+): |
✅ |
🟡* |
✅ |
DeFi Lending Revenue: |
✅ |
🟡* |
🟡* |
100% Platform Revenue to Stakers: |
✅ |
🚫 |
🚫 |
Early Adopter Rewards: |
✅ |
🚫 |
🟡* |
Decentralized: |
✅ |
🚫 |
🟡*(Centralized Collateral) |
Risk-Free Guarantee: |
✅ |
🚫 |
🚫 |
Supports Charitable Causes: |
✅ |
🚫 |
🚫 |
|
🟡* = Some projects may offer this or it may be available through 3rd party providers. |
|||
0% Interest Loans
Inflation-Proof Stablecoin
On-Chain Real World Assets
110% Collateral Ratio
Efficient Liquidations
Incentives for Stability Pool Providers
Incentives for LNDR Stakers
Decentralized and Governance-Free
Recovery Mode
Fully Redeemable
Supports Global Initiatives
0% Interest Loans
0% Interest Loans
Users can create Lendr Stablecoins by opening a loan (trove) with 0% interest and no deadline to return the loan.
Unlike other lending protocols that charge an ongoing interest fee, Lendr only charges a one-time borrowing fee when the loan is taken out.
Inflation-Proof Stablecoin
Inflation-Proof Stablecoin
Stablecoins holders lost over 9 billion USD of spending power to inflation in 2022.
All stablecoins and stablecoin farms have a hidden cost, which is inflation. However, Lendr Network offers loans for an inflation-proof stablocoin, LendrUSD (USDL).
Unlike most stablecoins that are pegged to $1, LendrUSD is pegged to an on-chain inflation index so the tokens retain their spending power. It has all the functionality of a stablecoin while preventing holders from losing value to inflation.
On-Chain Real World Assets
On-Chain Real World Assets
The Lendr Network offers users the ability to interact with real world assets(RWAs) on the blockchain.
In addition to the inflation-proof stablecoin, LendrUSD, users can also take out loans for tokens pegged to different commodity indexes like gold, real estate, health care, etc.
110% Collateral Ratio
110% Collateral Ratio
Users can borrow up to 90%+ of their collateral in Lendr Stablecoins!
All loans are initiated with a minimum collateral ratio of 110%. Lenders must monitor their loans to ensure they maintain the minimum collateral ratio, or they run the risk of having their loans reverted by the protocol’s highly efficient liquidation system, whereby any user can discontinue the loan for a small reward and the collateral position will be lost.
By enforcing a minimum collateral ratio and providing an effective liquidation mechanism, Lendr Network maintains the necessary level of backing for its stablecoins.
Efficient Liquidations
Efficient Liquidations
Lendr employs an efficient liquidation mechanism to maintain the protocol’s solvency and stability. In case a loan’s collateral ratio falls below the minimum threshold of 110%, the system incentivizes quick and efficient liquidations.
Liquidation is done in two ways: first, by offsetting the debt with tokens from the stability pool, followed by burning them. Collateral from the liquidated loan is then sent to the stability pool.
Prompt liquidation is incentivized for liquidators, while stability providers benefit from contributing to the Stability Pool.
Incentives for Stability Pool Providers
Incentives for Stability Pool Providers
By depositing tokens into the Stability Pool, users can help ensure the stability of the Lendr Network while earning rewards for their contributions.
Stability Providers are incentivized to contribute to the stability pool in two ways:
Liquidation Gains: If a loan falls below 110% collateralization, it is liquidated, and the collateral is distributed to the stability pool stakers. The tokens loaned out are burnt from the stability pool. Therefore, the stakers gain the difference between the absorbed debt (in USDL) and the received collateral.
LNDR Rewards: Over 30% of all protocol reward tokens, LNDR, are reserved for staking rewards. Stability Providers receive LNDR based on the proportion of USDL they deposit into the stability pool. These rewards are distributed continuously with fewer rewards distributed over time to encourage early adoption.
Stability Providers can withdraw their collateral gains and LNDR rewards at any time. USDL deposits can also be withdrawn, provided that the system has no liquidatable debt.
Incentives for LNDR Stakers
Incentives for LNDR Stakers
Users can get rewards by staking the protocol reward token, LNDR. LNDR is aquirable if you stake USDL in the stability pool or purchase it.
Lendr generates rewards for LNDR stakers in two ways:
Issuance Fees: Issuance are a small fee collected whenever a user takes our an USDL loan, between 0.5% and 5%, and, they are distributed pro rata to LNDR stakers.
Redemtion Fees: The redemtion system allows users to trade USDL and collateral at the proper inflation index price at any time. A small fee is charged on reemption transactions and distributed to the LNDR staking pool. The tokens can be staked and unstaked any time with no minimum lockup period.
Decentralized and Governance-Free
Decentralized and Governance Free
The Lendr Network distinguishes itself from other DeFi protocols by relying solely on algorithmic governance rather than human intervention. All protocol parameters are predetermined or algorithmically managed, reducing the need for human intervention. The base rate, which serves as a basis for borrowing and redemption fees, is continuously adjusted using a time decay mechanism that measures redemption volumes.
This governance-free approach, combined with a one-time borrowing fee, offers users a predictable borrowing experience when using their collateral.
Recovery Mode
Recovery Mode
Recovery mode is an emergency system the Lendr Network implements in case the collateral or token prices change significantly to the point that the overall protocol collateral ratio drops below 150%.
In recovery mode, several parameters change:
- Loans under 150% collateralization can be liquidated.
- Loans that would lower the total collateralization ratio are blocked.
The purpose of recovery mode is to get the protocol operating with at least 150% collateral and for users to provide tokens to the stability pool.
Fully Redeemable
Fully Redeemable
LendrUSD(USDL) and collateral (ETH, BNB, etc.) can be converted at the correct inflation price at any time using the redemption system. This feature helps keep the token price correctly pegged and allows users to benefit if the token price decreases beyond its intended peg.
The redemption transaction charges a small fee to the user, and the fee is sent to the LNDR staking pool as rewards.
Supports Global Initiatives
Supports Global Initiatives
In addition to improving the blockchain space with an innovative and secure protocol, the Lendr Network also aims to make a positive impact on the world.
The protocol aims to give back to the global community by staking 0.5% of the LNDR total supply in the reward pool. The rewards generated from those tokens will be reserved for altruistic organizations. This feature sets FlatcoinUSD apart from other DeFi protocols and demonstrates the protocol’s commitment to making a difference in the world.