Project Overview
by HowToPulse Team
•
May 18, 2022
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Token ticker: LOAN
Supply: pending
About:
Liquid Loans is a decentralized 0% interest-free borrowing and yield-bearing protocol launching on PulseChain (PLS). There are two tokens issued by the Liquid Loans protocol: USDL and LOAN. Because Liquid Loans is immutable, governance-free, has no admin-keys and zero repayment schedule, it has emerged as an attractive protocol on the up-and-coming PulseChain blockchain. Liquid Loans successfully completed a Sacrifice Phase running from February 19, 2022 until March 21, 2022 12pm UTC, prior to the PulseChain mainnet launch. The first 10 days of the sacrifice phase locked in a 10,000:1 (LOAN:USD) rate which then increased by 5% every day thereafter. Sacrificers were able to choose from either immediate distribution or locking for up to 24 months, should there be a potential future airdrop of LOAN tokens to the sacrifice set.
Features: The shining use case for Liquid Loans is that it gives the PLS holder the option to extract value from their PLS without having to sell it. There is no repayment schedule nor is there any interest ever charged on the loan. A small one-time fee is charged, which is used to distribute a portion of that fee back to the LOAN token holder. The borrower locks PLS into their “Vault” at a minimum collateral ratio of 110% to mint USDL, a fully backed stablecoin pegged to the US Dollar that’s maintained by an algorithmic monetary policy. USDL holders can earn LOAN tokens by depositing their USDL into the stability pool.
The Liquid Loans ecosystem consists of three tokens:
USDL:
Mint USDL by locking PLS in your “Vault” (a smart contract). Minimum collateral ratio is 110%, but risk averse borrowers should maintain a collateral ratio above 150% at all times. USDL is an algorithmic stablecoin that aims to always be worth $1 USD. USDL is not fiat backed like Tether, USDC, Paxos and TrueUSD are. USDL’s peg is supported by a one-time Borrowing Fee and is algorithmically controlled. In addition to being deposited into the stability pool to earn LOAN, users can also utilize their USDL to participate in the broader DeFi market. USDL tokens can be returned to the protocol (redeemed) in exchange for a PLS amount worth the face value of the returned USDL minus a Redemption Fee. The Redemption Fee also helps to support the USDL’s peg in tandem with the Borrowing Fee.
LOAN:
LOAN is the secondary token issued by the Liquid Loans protocol. It is the yield-bearing token of the protocol. Users can earn LOAN by providing USDL to the stability pool. LOAN captures the fee revenue that is generated by the system when loans are issued and redeemed and incentivizes early adopters. Stakers in the LOAN stability pool will also earn PLS each time the protocol experiences a loan and/or redemption.
PLS:
The native coin of PulseChain, users of the Liquid Loans protocol can earn PLS by having LOAN staked in the stability pool. PLS is issued to the stakers when the protocol experiences either a loan or a redemption and originates from the Borrowing Fee and Redemption Fee accordingly.
The Ecosystem:
Here is a detailed break-down of how the ecosystem works.
Devs team:
Cristian Ulloa, Co-Founder & CEO; Dave Gordan, Co-Founder & COO; Jesse Askin, Head of Growth, Adoption & Community; Jeff Callahan, Head of Technology & Development; Jeremy Jacka, Head of Security, IT & Planning; Matt Cho, Head of Media, Content & Delivery; Nimish P, Head of Design & Brand Management
*** Cryptocurrencies are highly volatile. Those who invest in them should be prepared to lose all their money. NOTHING www.howtopulse.com states, shares, expresses, or allude to should be considered financial advice or recommendations of action. This blog is intended for educational and entertainment purposes only. Consult a professional for any tax, financial or legal related questions you may have.***
Links:
Official Website: LiquidLoans.io
Referral Program: Yes, You can participate here
Nothing in this article or website is financial or taxation advice. For advice on these matters, please contact a registered professional adviser.
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