❓Frequently Asked Questions (FAQ)
Please visit our YouTube Channel to view the Lendr Network FAQ Series.
What is the Lendr Network?
Lendr creates unique real world asset tokens/flatcoins to use in web3. These include tokens pegged to the U.S. inflation index, the U.S. Real Estate Market, the Gold Market, and more.
We offer 0% interest loans to issue Lendr Network RWA tokens/flatcoins using native blockchain tokens as collateral (110%+).
Users can stake our tokens to earn financial rewards and help maintain the token’s stability/peg.
Learn more about these systems here.
Lendr is fully decentralized, governance-free, and self-sustaining.
We are an improved/enhanced fork of the incredibly successful Liquity Protocol (LUSD and LQTY).
How did Liquity inspire the Lendr Network?
The Lendr Network is an improved and expanded version of the Liquity codebase.
Our vision includes the addition of multiple tokens pegged to different indexes like inflation, real estate, gas, etc. Liquity's success, having surpassed $1 billion in total value locked and gaining recognition as a top 200 token globally, serves as our inspiration.
We aim to go surpass them and offer enhanced value and utility to our users.
What are Lendr's use case and main features?
0% Interest Rate Defi Loans
World's First Real Estate Pegged Stablecoin (US Real Estate RWA Index Token)
Multiple RWA Index Tokens
Inflation-Proof Stablecoin (Flatcoin)
On-chain tokens pegged to real world assets (gold, health care, etc.) usable in any ERC-20 compatible defi protocol
Earn rewards – Stakers receive rewards from the platform (100% of defi lending revenue sent to stakers)
Token Stability Rewards System – Users are financially incentivized to maintain the token peg (redemptions, liquidations, etc.)
Decentralized and Governance-Free – Censorship and regulation resistant
Fully Redeemable – USDL can be redeemed for 1:1 collateral backing at any time by anyone
(Planned) Deposit in yield auto compounding vaults like Yearn
(Planned) Use as collateral on other defi lending platforms
(Planned) Lend (or borrow) on other defi lending platforms, earn ongoing yield or collateralize with other assets
Lendr also has security features such as being 110%+ over-collateralized, and a built in recovery mode.
How can I earn rewards with Lendr?
There are four ways to make money with Lendr:
Deposit RWA Tokens - into the stability pool and earn liquidation gains in collateral and reward tokens
Stake Reward Tokens - and earn the revenue from issuance fees and redemption fees
Liquidate Troves - under 110% collateralization for a reward and gas coverage
Stabilize Inflation Price - earn rewards by keeping the token peg through redemptions and issuance arbitrage.
Follow our Quick Start Guide to get started.
How do Lendr Network RWA Tokens/stablecoins remain overcollateralized?
The Lendr Network uses the following methods to keep the entire borrowing platform overcollateralized:
110% Collateralization Minimum - To take out a loan, users must provide at least 110% collateral and they must monitor their loan to keep it above the minimum.
Liquidations - If a users loan drops below 110% collateralization, any user can liquidate the loan which terminates the loan and increase the collateral ratio of the network
Recovery Mode - This is a backup system in case the total collateral ratio of the network drops below 150%. In recovery mode, any loan under 150% can be liquidated, and borrowing fees are 0%.
How do Lendr Network RWA Tokens/stablecoins maintain their peg?
The Lendr Network uses a combination of issuance, which helps the price return to its correct value if the price is too high, and redemptions if the price is too low.
With issuance, users can mint new RWA Tokens/stablecoin tokens and sell them on the market to make a profit.
And with redemption, users can create real world asset tokens and use the Lendr Redemption system to sell them for collateral at the target price. Users can make a profit on this until the token returns to its target price.
Note: Lendr real world asset tokens are not algorithmic stablecoins. The network is designed to remain overcollateralized with sufficient backing.
Liquity has used this system to maintain their token peg for years. Here is a comparison to other top stablecoins on speed to repeg using this mechanism:
How do Lendr real world asset tokens work with their reward tokens?
Every Lendr flatcoin has an associated reward token that is earned by staking our flatcoins.
real world asset token stakers receive early adopter rewards in the form of reward tokens and from liquidations in the form of native blockchain tokens.
Reward token stakers receive fees from issued flatcoin loans and redemptions.
Learn more about the flatcoin staking pool and the reward token staking pool.
Why does the Lendr Network use multiple flatcoins/stablecoins?
The Lendr Network offers loans for different real world asset tokens pegged to different commodity indexes like inflation, real estate, and gold.
The Lendr Network protocol is being adjust to utilize a single reward token across all real world asset tokens in the future.
For each of these real world asset tokens is a unique reward token. Rather than having one reward token for the entire Lendr Network, it was decided to create separate ones for each real world asset token for the following reasons:
To prevent a real world asset tokens representing one market to be affected by different markets. For example, a real estate token being affected by the gold market.
To attend to institutional investors that invest large amounts of money who don't want an asset class to be affected by a different asset class
To synchronize the reward token launches with the real world asset token launches, as they are happening at different times
What early adopter incentives/rewards exist?
30% of the total supply of Lendr Network reward tokens are reserved for staking rewards and will be distributed over the course of 5 years!
real world asset token stakers will receive increased reward token amounts at launch to encourage early adoption.
Are Lendr Network real world asset tokens similar to Terra/Luna (UST)?
Absolutely NOT! Terra/Luna was an algorithmic stablecoin that was under-collateralized and had critical design flaws.
Lendr Network real world asset tokens are NOT algorithmic stablecoins.
Lendr Network real world asset tokens are fully backed and maintains 110%+ verifiable on-chain collateral.
Lendr Network real world asset tokens are designed to handle bank runs or price drops if they ever occur.
What would happen if a bank run occured?
None of the Lendr Network real world asset tokens are algorithmic stablecoins and they all remain overcollateralized.
There is always 110% collateral backing the system, which means that it is designed to handle a full exit.
How does Lendr support charitable causes?
0.5% of Lendr reward tokens' total supplies will be staked in the rewards pool to earn it's portion of rewards. The rewards from those set of tokens will be used to donate to charitable causes.
What is the long term vision for Lendr?
Our long-term vision for Lendr is to provide a number of decentralized "flatcoin" assets pegged to different commodity indexes such as:
Gold (LendrGOLD)
Real Estate (LendrRE)
Healthcare (LendrHC)
Oil/Gas (LendrOIL)
Learn more about Lendr's long term vision here.
What is the Unipool?
The Unipool is a staking pool smart contract where you can stake Uniswap v2 (real world asset tokens)/ETH LP tokens (on Binance Smart Chain you can stake PancakeSwap v2 (real world asset tokens)/BNB LP tokens) and be rewarded with the associated reward token for the real world asset token you supplied LP to. Learn more here.
Who controls/owns the real world asset token collateral?
The collateral for all the Lendr Network real world asset tokens is owned and controlled solely by the decentralized smart contracts of the system. This means that the Lendr company/team cannot access or control the collateral funds in any way.
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