Lemond Protocol—A Juicy Way To Take A Loan
Lemond is a decentralized, open-source, autonomous, non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion.
Each asset supported by Lemond Protocol is integrated through a lToken contract, which is an EIP-20 compliant representation of balances supplied to the protocol. By minting lTokens, users earn interest through the lToken’s exchange rate, which increases in value relative to the underlying asset, and gain the ability to use lTokens as collateral.
Lemond Protocol users may supply various supported cryptocurrencies or digital assets onto the platform, which can be used as collateral for loans, supply liquidity and earn an APY, or to mint synthetic stablecoins. Supplying assets such as cryptocurrencies or digital assets to Lemond gives the users the ability to participate as a lender while maintaining the security of collateral in the protocol. Users will earn a variable-based interest rate depending on the yield curve utilization of that specific market.
All user assets are pooled into smart contracts so that users can withdraw their supply at any time, given that the protocol balance is positive. Users who supply their cryptocurrency or digital asset to Lemond will receive a lToken, such as lBTC, which is the only token that can be used to redeem the underlying collateral supplied. This will enable users to use these tokens to hedge against other assets or move them into cold storage wallets that support current chain.
BORROWING REGULATIONS ON LEMOND PROTOCOL
- Users who want to borrow any of the supported cryptocurrencies, stablecoins, or digital assets from Lemond must pledge collateral that will be locked on the protocol. These assets must be over collateralized and will enable up to 80% of that collateral value borrowed.
- These collateral ratios are determined by the protocol and are controlled through the Governance process. Once these assets are supplied, you can borrow based on the collateral ratio of the asset.
- Users will have a compound interest rate that will be applied per block on these assets and have no monthly payment obligations. To return the collateral, the user must pay off their origination balance and compounded interest back to the protocol.
INTEREST RATE
Lemond protocol utilizes an interest rate model that achieves an interest rate equilibrium, in each money market, based on supply and demand. The interest rate earned by suppliers is implicit, and is equal to the borrowing interest rate, multiplied by the utilization rate.
LEMOND PROTOCOL GOVERNANCE
Lemond Protocol will begin with centralized control of the protocol (such as choosing the interest rate model), and over time, will transition to complete community and stakeholder control. DAO Pool would be activated at a proper time with total size 150M LEMD. Releasing mechanism same as mining pools. Users can deposit LEMD into DAO Pool to get rewards of LEMD together with governance token DLEMD. Votes are highly related with the volume of DLEMD users hold.
GOVERNANCE FEATURES
Adding new cryptocurrencies or stablecoins to the protocol
Adjusting variable interest rates for all markets
Setting fixed interest rates for synthetic stablecoins
- Voting on protocol improvements/proposals
Total amount of LEMD is 10B, initially ERC-20 type. After deploying to OKexChain, 820M LEMD would be migrated to OEC for mining reward, incentive, etc. LEMD could be used to get inbound and outbound yields; to be used for NFT loan market(future orientation);to be used to get member badge for qualification of innovative offering mode(future orientation);to be used for governance of the entire ecosystem(DAO)
ABOUT Lemond Protocol
Lemond is a Protocol initialized on OKExChain with lower gas cost and higher efficiency. Besides the basic loan function, Lemond would bring more in the following steps, all is aiming for a Juicy DeFi environment. Lemond is a decentralized, open-source, autonomous non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion.
