DeFi lending dark horse project Layer | Mining ecology should not be underestimated

In this decentralized world, a series of financial service applications such as lending, trading, derivatives, fund management, lottery, payment, insurance, etc. are pushing the envelope.

DeFi lending dark horse project Layer | Mining ecology should not be underestimated

In recent years, the blockchain industry has seen remarkable development, and new technological innovations are gradually changing the global financial development system. Meanwhile, as the overall scale of cryptocurrencies expands, crypto assets are being accepted by more and more institutions and users, and traditional capital is accelerating its entry into the cryptocurrency market. And the overall market capitalization of the DeFi concept, which has been hot since 2019, is growing exponentially, having soared from a total lock-up of $700 million in early 2020 all the way to the current $300 billion. The total lockup has expanded more than 400 times in less than a year and a half, surpassing Deutsche Bank’s total assets and attracting a wide range of financial users, including Wall Street investors.

The so-called DeFi (Decentralized Finance) is an open finance concept that emphasizes the use of blockchain technology to enhance distributed cooperation between different centers and the use of blockchain technology to strengthen the trustworthiness of data, thus making data and financial operations more open and allowing closer, less costly and more efficient connections between financial operations. DeFi allows the creation of permissionless protocols that offer financial products such as loans, savings, pledges and liquidity mining. Pledging and liquidity mining are two of DeFi’s products that have attracted investors due to their potential to generate interest on investments. More importantly, the rise of DeFi has given the decentralized world an infrastructure to build. In this decentralized world, a range of financial service applications such as lending, trading, derivatives, fund management, lotteries, payments, insurance, etc. are pushing the envelope.

DeFi lending dark horse project Layer | Mining ecology should not be underestimated

Among them, the decentralized lending in DeFi application scenarios greatly improves some of the drawbacks of traditional financial lending – financial lending, as one of the most common services provided by the financial industry, is facilitated by the concept of credit and guarantee, a lending system that requires banks as intermediaries to assume the role of trust with a high threshold. And with traditional centralized lending, most of the user’s time is consumed with complicated documents and lengthy approval procedures, which is very cumbersome. This is how the concept of decentralized lending was born, where banks are no longer needed as intermediaries in the DeFi environment. Anyone with enough collateral can access funds to do what they want to do. Lending is no longer the preserve of the wealthy; everyone can fund a decentralized liquidity pool, from which borrowers can withdraw funds and repay the loan at an algorithmically determined rate. Unlike banks with strict customer vetting systems and anti-money laundering policies, users only need to provide collateral to borrow in DeFi.

Nowadays, most decentralized lending platforms based on ethereum, most of the coins that can be pledged are ERC20 tokens, and the hotter projects such as Poca and older public chains are rare, which limits the opportunity for many users to participate in the DeFi platform to enjoy the dividends therein. But the decentralized lending project Layer is breaking through this status quo – Layer is the first DeFi contract on the Coinan smartchain BSC to support deposits and lending of all BEP-20 assets. Users can deposit any BEP-20 assets they hold into the Layer contract and earn interest on their deposits. Users with lending needs can also deposit their pledged asset holdings into Layer and lend out their lending target assets through overcollateralization. Compared to other DeFi lending programs, the Layer program has distinct advantages.

● Support for all BEP-20, and strong applicability of token deposit and lending.

● Layer is based on the BSC public chain underlay, with extremely low fees.

● Support for small leverage shorting to enhance capital efficiency.

● Multiple lending pool model with mutual risk isolation.

● Zero pre-mining of governance tokens and fair start-up.

DeFi lending dark horse project Layer | Mining ecology should not be underestimated

It is worth noting that Layer has made many disruptive innovations, such as a more universal interest rate model and a more risk-resistant clearing logic, thus being able to withstand the risk of wearing out positions due to large fluctuations in coin prices. In addition, through comprehensive analysis, it is found that Layer is more stable and secure than other lending programs, and the mining ecology in the lending agreement is more stable and secure at the same time of high returns. The editorial has conducted a comprehensive analysis from the following points.

Token allocation mechanism

DeFi lending dark horse project Layer | Mining ecology should not be underestimated

LAYER token release will take place in a completely fair way with zero pre-mining, and nearly all of the tokens are used for mining, so the project’s good value ecology is obvious. At the same time, the project team and advisors will receive very few tokens, so the possibility of a massive sell-off is very low, and the team’s holdings will be unlocked with the mining rhythm, similar to the sushi unlocking scheme.

Mining and Exploitation Mechanism

Layer has a rich mining and export mechanism, suitable for different types of investment users. While it supports lossless mining, it also supports dual coin mining (higher returns). In addition, the amount of mining output is not fixed, adopting a linear and gradual reduction mechanism, the amount of coins produced will be reduced, and the corresponding token price in circulation in the market will be higher and higher. Not only that, Layer is now still in the first month of Genesis mining, with 200,000 LAYER release, from May 7, the first week to open USDT (BSC) single-coin mining, the second week to open LAYER-USDT liquidity mining and multi-currency (BTC, BNB, ETH, BUSD, Lts, DAI, etc.) of single-coin mining, and will be online exchange Trading.

Intelligent destruction mechanism

Layer will start the smart destruction mechanism for Token destruction after mining is turned on. The destruction mechanism will directly make the Tokens mined by each user have a higher value because of the market supply and demand, and obtain a higher return. In addition to destruction, lending interest, Layer Dao governance, and liquidity mining are all price supports for LAYER tokens, ensuring stable mining returns.

Mining security properties

Analyzing from the security attributes of the mining protocol system, as can be checked from the project website as well as the white paper, the security of the Layer mining protocol is the highest priority of the project. The project development team, together with third-party auditors and consultants, has invested a lot of effort in creating a safe and secure protocol. All contract code and balances are publicly verifiable, and a portion of the protocol’s contract code was borrowed from Compound, a mature lending project, which, combined with Layer’s own more reasonable mining model, combined to ensure each user’s mining security and stable revenue.

Mining Value Prospects

From the value prospect analysis, refer to the current three relatively mature DeFi lending products to compare, Compound token circulation market value 11.9 billion; Make token circulation market value 29.5 billion; AAVE token circulation market value 33.4 billion. LAYER is based on BSC smart chain, and will extend to other underlying layers in the future, covering more underlying chains and supporting all coins, with more application advantages and consensus base. When the market value of LAYER token reaches 5 billion, the benchmark price is 900USD, and Layer’s first milestone is to become a DeFi project like Compound’s circulation ecology, so the value is expected.

Through the above analysis, I believe there is a certain understanding of Layer mining ecology. layer as a dark horse project in the field of DeFi lending ecology will soon explode the global market, and more and more institutions and investors will pay attention to the progress of Layer project.

DeFi lending dark horse project Layer | Mining ecology should not be underestimated

Last but not least, if a bear market comes, how can individual digital assets operate to minimize losses or even still guarantee gains, in fact, Layer mining ecology has given the answer. Participate in Layer early mining, first of all Layer is a stable and secure decentralized deposit and loan platform with the highest level of technical security protection. Secondly, Layer has a maximum pledge rate of only 75%, and they are all core assets without the risk vulnerability of unreasonably high pledge rates, and the lending model and operating mechanism are tested; Layer’s price prediction machine will not be immediately affected by market prices, and will be cleared based on the price-weighted average of two intervals.

Layer’s next stage will support multi-pool model, each pool deposit and lending separately for risk isolation, which will greatly improve the security level. Not only can the assets retain their value, but also the mining revenue obtained can increase in value. And there are two kinds of Layer mining ecology, one is deposit lossless mining, and the other is liquidity mining, which is very suitable for preserving and increasing the value of operation in the coming bear market stage. In addition, Layer mining has just started, and the annualized return is higher compared to other similar projects that have been mining for a long time, which is suitable for participating in the downward phase of the market to ensure a positive return on personal assets.

Layer has a variety of mining types to choose from, and compared to other BSC mining projects, LAYER-USDTLP annualized returns can reach 446%, L_ETH annualized returns can reach 52%, L_BTCB annualized returns can reach 94%, and L_BNB annualized returns can reach 120%. And with a total supply of $7,000,000 and a total loan amount of $67,000, LayerTotal Supply offers higher and more stable returns for early participation.

As Layer Genesis mining unfolds, LAYER will also start a new round of upward trend, which is worth watching. If you have questions about Layer’s economic model and mining ecology, please pay attention to Layer’s official website to get valuable information at the first time. Grasping Layer will be your winning strategy to cross the bull and bear!

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-25 01:54
Next 2021-05-25 02:06

Related articles