🏦Lending Borrowing
Unlocking liquidity and new financial market solutions
Last updated
Unlocking liquidity and new financial market solutions
Last updated
Y24.io’s seamless Borrow/Lending utility is set to launch, debuting with Aave as the exclusive provider. While we are actively constructing our Leverage tool to accommodate multiple providers competing for capital efficiency and risk factors transparently on L1/L2, Aave, with its proven track record and outstanding capital efficiency, is expected to remain the primary leverage provider in the foreseeable future. Despite the integration of new leverage providers, Aave’s established excellence positions it prominently.
Aave, known for its lending platform enabling users to borrow and supply assets, has successfully incorporated Lido’s stETH as a collateral asset. Y24’s LRT tokens, namely yETH and yBNB, are backed by stETH and stBNB. This backing allows LRT holders to seamlessly engage in lending and borrowing activities against their ETH across all EVM-compatible chains, including Polygon, BNB, ETH, and Polkadot.
Every lender's fundamental goal is to secure funds at an interest rate of X% and then lend those funds at a higher rate of X+Y%, thereby capturing a spread represented by the ongoing net interest margin (Y%) or a one-time "gain on sale" of the underlying loan (approximately Y% multiplied by the effective duration of the loan). The lower the cost of borrowing (X%), the greater the potential for profit (up until efficient market forces drive down Y%). Given this incentive, why would anyone willingly opt for a higher X%?
The following lending/borrowing protocol integrated into the Yield24 ecosystem ensures a seamless experience and maximizes profitability.
Venus Core Pool
Apeswap Lending
Radiant V2
Prime Protocol
LRT holders (yBNB) have the opportunity to lend their native yield BNB and earn an additional APY of up to 22%. The process is straightforward—users interact with the Yield24 lending dapp, input the desired lending amount, and submit. Our AI-enabled smart contract dynamically identifies the most suitable interest rate from various lending platforms, including Apeswap Lending, Venus, Radiant V2, and Prime Protocol. The goal is to optimize APY for enhanced returns.
Borrowing can be intricate, as typical borrowing platforms usually provide 70-90% of the collateral value in liquid cash. At Yield24, we go the extra mile by securing you the best liquidity for your collateral, offering up to 90%. Additionally, we add an extra 10% from our pool. To prevent liquidation, we meticulously ensure that funds are invested prudently and adhere to all risk parameters. In summary, in the event of liquidation, Yield24 takes on all associated losses.
