1Pool Lending Protocol

1Pool lending is a decentralized cross-chain lending protocol built on Ethereum and Binance Smart Chain.

‌1Pool lending protocol facilitates on-chain lending and borrowing against selected Liquidity Providers (LP tokens) and stand-alone digital assets.

‌The users ( Lenders) can earn interest on their digital assets by providing supported digital assets to the protocols. Borrowers can obtain a loan by providing selected digital assets, which would include stand-alone assets,i.e. BTC, ETH, DOT and selected LP tokens. Interest rates are adjusted algorithmically by the protocol.‌

Collateralizing LP tokens‌

Most existing platforms offer lending and borrowing on stand-alone digital assets (such as borrowing USDT/USDC against BTC or ETH collaterals). Whereas the users of 1pool can use selected Liquidity pairs as collateral and take a loan.‌

The holders of LP tokens ( for instance Sushiswap LP -SLP DAI/ETH) can deposit their LP tokens to 1POOL lending protocol as collateral and obtain a loan in USDC or ETH.‌

The protocol algorithmically set the interest rate depending on the market supply and demand.‌

Similarly, the Loan to Value Ratio (LVR) would be adjusted according to the overall size of the LP pool and the market cap of the underlying asset.‌

Automated liquidation would occur if the asset depreciates below the LVR.‌

Liquidation would happen in stages, only sizeable enough to sustain the LVR rate.‌

The lender can provide additional collateral to avoid liquidation, or settle a part of the loan by liquidating a portion of the loan.

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