COINDAO CREDIT lending platform
The core of COINDAO CREDIT is to make the value of assets exchangeable in time, which is simply mortgage lending. When you need to use an asset, you don't need to spend 100% of the cost to hold it. You only need to bear a little interest to get the right to use it for a certain period of time, and then return it after use.
About the fund pool
Each token will have an independent fund pool. When a mortgage occurs, the fund pool will increase; when a loan occurs, the fund pool will decrease. For example, when mortgaging ETH to lend USDC, the ETH pool will increase, while the USDC pool will decrease. Due to the existence of the capital pool, the two parties of the transaction do not need to be matched separately, which improves the transaction efficiency. The figure below is an overview of each fund pool, including the total market value of the fund pool tokens, mortgage interest, and borrowing interest.
About Mortgage
Mortgage can get loan amount. Since the system adopts over-collateralization, the loan amount obtained will be less than the collateral value. For example, a mortgage of $100 worth of ETH can get a loan amount of $75. Mortgage can earn interest, regardless of whether the loan amount obtained is used or not. In this way, users who do not need loans can be encouraged to mortgage their idle tokens to the capital pool to expand the market supply.
The above picture is the mortgage operation interface. At this time, there are 0.2347 ETH in the account. If all mortgages are used, the loan amount can be increased by 43.71 US dollars (43.71=0.2347ETH x ETH price 248$ x mortgage rate 0.75)
About borrowing
After staking the tokens to obtain the loan amount, other tokens can be lent out, the loanable amount = loan amount/the current price of the token. Since the collateral will be liquidated when the loan amount is negative, it is generally necessary to ensure that a certain amount of loan amount is maintained after borrowing. The platform recommends that the safe maximum loan amount should not exceed 80% of the loanable amount.
Solve the problem of insufficient transaction liquidity through the shared capital pool
Mortgage and lending are two separate acts, while general mortgage and lending are bundled
Mortgage itself is profitable, so even if you don’t need to borrow, you can get benefits through the platform
Mortgage lending can be in any direction and can meet the diversified needs of the market. For example, you can mortgage ETH to lend USDC, or you can mortgage USDC to lend ETH
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