Lending Module (TBD)
Decentralized cross-chain lending protocol module
What is the Lending Module?
The Lending Module is a key component of NerveNetwork’s DeFi infrastructure, enabling decentralized deposit and borrowing services. Users can deposit assets to earn interest or borrow liquidity assets by collateralizing their holdings, thereby improving capital efficiency.
Core Features
Decentralized Deposits
Users can deposit assets into the lending pool;
Depositors earn interest on their funds;
Interest rates are automatically calculated based on supply and demand.
Decentralized Borrowing
Users can borrow assets by collateralizing their own;
All transactions are executed on-chain via smart contracts, without intermediaries;
Borrowing capacity depends on the collateral ratio.
Dynamic Interest Rate Model
Interest rates adjust dynamically according to supply and demand;
Rates increase when liquidity is scarce, attracting more deposits;
Rates decrease when liquidity is abundant, encouraging more borrowing.
Liquidation Mechanism
If a borrower’s collateral value falls below the safety threshold, liquidation is triggered;
Liquidators repay part of the debt and receive collateral rewards;
This ensures the stability of the lending pool.
Cross-Chain Asset Support
Integrated with NerveNetwork’s cross-chain bridge;
Supports assets from multiple blockchains as deposits or collateral;
Expands beyond single-chain limitations, enabling cross-chain lending markets.
Advantages of the Lending Module
Fully Decentralized: Transparent and auditable on-chain processes;
Capital Efficiency: Depositors earn interest, borrowers gain liquidity;
Cross-Chain Compatibility: Supports multi-chain assets for wider use cases;
Risk Management: Over-collateralization and liquidation mechanisms ensure security;
DLMM Synergy: Borrowed liquidity can flow into DLMM pools, maximizing capital efficiency.
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