Lending
Last updated
Last updated
Lending plays a significant role in the CORE ecosystem. Prominent lending protocols within the CORE chain such as the Colend Protocol offer a steady source of asset growth. Participants of a lending protocol may supply their assets to pools and get interests or passive incomes in the form of Supply APY in return. The lending APY is funded by the borrowers who need extra money to meet their investing needs. When they borrow assets from a pool, they have to pay Borrow APY. The APYs are not fixed. They depend on the utility of the token and the lending-borrowing relations.
Corepound adopts an innovative approach that aggregates users’ bluechip assets such as CORE, USDT, BTCB, etc. The built-in analytics driven by Artificial Intelligence (AI) and data-trained strategies allow users’ assets to be directed to reliable lending protocols on CORE with sizable AUM at its maximum efficiency.
What sets Corepound Single-Sided Lending apart is its enhanced security and user-friendliness. By focusing exclusively on the supply side of lending, users enjoy a reduced risk profile since there is no exposure to liquidation. Moreover, complexities associated with traditional lending practices are extensively mitigated.
With Corepound, users only need to decide to which vault of tokens they stake their assets. Corepound enables users to capitalize on the rewards from the liquidity they have provided in a more straightforward manner. The secure and streamlined Corepound single-sided lending is considerably conducive to navigating through the volatile markets and increasing users’ assets.
Looping Strategy offers users an efficient way to maximize yields through a sequential lending and borrowing process, increasing capital utilization while managing liquidity risks. This strategy leverages collateralized assets to generate compounding interest without the need for additional capital contributions, which also means higher risk.
The process begins when users deposit an asset into a reliable lending pool on Core chain, where it starts earning interest immediately. This deposited asset is then used as collateral to borrow additional assets, with borrowing limits carefully set within safe parameters (around 30% of the protocol's recommended LTV) to reduce liquidation risk. The borrowed asset is subsequently redeposited into the lending pool, compounding the interest further. This cycle of borrowing and redepositing repeats multiple times, increasing capital exposure and amplifying the interest generated.
Corepound’s looping strategy is equipped with automated risk monitoring, dynamically adjusting borrowing limits based on market conditions and asset volatility. The strategy employs precision analytics to determine optimal looping cycles, maximizing yields while safeguarding against adverse price movements and market downturns.
