Lend Flare and CRE8R DAO AMA
Primer: Lend Flare is a lending platform that allows Curve investors to borrow against their LPs at a fixed rate. In this Lend Flare AMA hosted by CRE8R DAO, Terry shares with CRE8Rs the ins and outs of their project. Read on to learn about their airdrops too!
What Is Lend Flare?
A lending platform that allows Curve investors to borrow against their LPs at a fixed rate without any worries about liquidation due to price fluctuations
Currently, they have one of the highest APYs among the current lending platforms on the market
Background Of The Team
Started a company in 2019 focusing on blockchain technologies and smart contracts
Have a full development team:
UI designer
Software engineers
Product manager
Marketing manager
After 2019, they did several freelancing jobs. Hence, Lend Flare is fully funded by themselves
Inspiration for Lend Flare came from an article that discussed the problems inherent in the current lending platforms
What Problems Is Lend Flare Trying To Solve?
Trying to solve 3 problems:
Efficiency and maximizing user yield
Liquidation risk
Finding great value for user’s collateralized assets (Curve LP tokens have a great value compared to other tokens)
Advantage Of Using Lend Flare VS Staking Curve LP Tokens And Getting Curve Gauge Rewards
Deposits on Lend Flare are placed into Convex, where the interest gets directed to the user
Users also get an extra loan service. Hence, they would be able to get 80-90% more profits
Their Borrowing Mechanisms
When borrowers take a loan, the collateralized asset will be valued in Curve
It will be staked back into Convex to maximize the borrower’s yield
The amount of money that borrowers can borrow is pre-calculated. The team uses this number to withdraw the corresponding amount on Compound to provide it to borrowers
The interest rate is determined using the interest rate amplification coefficient and the utilization rate. It amplifies the Compound’s borrow rate
The interest for the loan is paid back when the loan is closed
Lend Flare will remove liquidity from Curve using the LP tokens if users fail to pay back any loans. Any interest generated during the loan period will be given to borrowers even if their assets have been liquidated
Their Lending Mechanisms
Depositors will first have their assets deposited into Compound Finance for yield
When borrowing occurs, liquidity is withdrawn from Compound and the borrower has to pay amplified Compound interest
LPs will receive a higher supply APY:
Interest rate from Compound
COMP token
Lend Flare (LFT) token
How Does Lend Flare Compare To Its Competitors?
The yield generated on their platform is based on genuine demand from borrowers and suppliers
What Measures Have They Taken To Protect Themselves Against Smart Contract Risks?
They are on CertiK’s Skynet program, which helps them monitor what happens within their contracts
If there’s any suspicious activity, the program would warn them
Thinking of making their code and frontend public
Their contract is able to deduct 0.1 ETH as liquidation insurance
How Does Lend Flare Generate Revenue?
The platform takes 10% of the extra yield they generate
Borrowers have to pay a higher borrow APY than Compound
The Lend Flare Token (LFT)
Inherits the tokenomics from Curve
LFT is given out as a reward for liquidity provision
LFT is staked to get a voting token to make proposals and to vote on the platform’s parameters. Concurrently, staked token holders share 50% of all fees generated across the platform
Current Stage Of Project Development
Completed development. Have handed it to CertiK for audit
Their Roadmap
In the next two months, they will be releasing Lend Flare DAO that will combine both Snapshot and Time Lock contracts
Team will be gradually relinquishing their power to the community
Will do a test before launching on Mainnet
Long-Term Vision Of The Project
Aiming to build a big ecosystem like Curve
Integrate others into their ecosystem
Are They A Participant In The Curve Wars?
They don’t make enemies. They see everyone as allies
Their focus is on combining protocols, like what they have done with Compound and Curve
What Are Some Challenges They Have Faced?
Main challenge is to promote their project
Has technical problems to handle as well
Any Upcoming Events That Users Should Know?
They are running beta tests on Rinkeby testnet at the moment
Participants will get a chance to win some LFT tokens if they participate in it
Finished their airdrop a month ago. Randomly selected 500 testers out of 1500 testers to receive the airdrops
Have exactly 1% of their token supply (3 million tokens) to be allocated for airdrops
They are thinking of creating some roles in their Discord server
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