The protocol will focus on providing safety and value capture for its users, while also offering a wide range of features and designs that according to the company, “will enable it to be the first-of-its-kind lending protocol in the crypto ecosystem.”
Crypto-Collateralized Loan Platforms Have Room for Improvement
Crypto-collateralized loans grew in popularity with the advent of Decentralized Finance, allowing for the creation of new trading and investment strategies while also increasing the benefits and services offered by the crypto ecosystem.
However, there were, and still are, several challenges that need to be addressed before they become more accessible to the general public.
At this time, different collateralization levels are necessarily introduced when lending cryptocurrencies, levels that can make the upkeep an extremely complicated matter in a market characterized for its high volatility.
This high volatility inherent to the crypto market can easily result in cascading liquidations when investors panic, which has only become more problematic as networks like Ethereum suffer from performance issues due to their saturation, preventing users from responding on time.
It is also not uncommon for crypto lending protocols to benefit themselves from liquidations while also disincentivizing long-term loans due to uncertainty.
This has been especially true for the Chainlink community as its users lose heavily upon liquidations while lending protocol’s live AAVE benefit from it.
Other issues displayed by these protocols come in the form of user experience and usability, which can be easily fixed with some key design changes.
LINKLEND’s Approach to Crypto-Collateralized Loans
YFLINK’s new product is aiming to be “the first truly crypto-collateralized lending and borrowing platform”.…