Shoebill Finance
Introducing Shoebill Finance
Hello, this is Shoebill.
Introducing Shoebill Finance, Klaytn’s new DeFi lending protocol that can be a solid alternative for DeFi users in Crypto Winter.
What is Shoebill Finance?
Shoebill Finance is a new concept of DeFi lending protocol within Klaytn that allows users to receive interest-free loans and earn high interest rates by utilizing leverage.
‘Lender’ deposits stable coins to provide liquidity and earns interest, and ‘Borrower’ deposits collateral and borrows stable coins to earn interest through leverage.
In existing lending protocols, the interest earned by the ‘creditor’ comes from the ‘lender’. Therefore, in order to pay more interest to the ‘creditor’, the ‘lender’ must pay a larger interest rate. Shoebill Finance utilizes a unique model that distributes the interest earned by ‘borrowers’.
When borrowers provide tokens as collateral, Shoebill Finance earns interest by depositing them into protocols such as Kokoa Finance, Kokonutswap, and Stake.ly . These interest earnings are converted into identical tokens deposited by creditors and distributed as interest.
An exact example is below:
- The withdrawal (creditor) deposits 100 USDC into the protocol.
- Younghee (borrower) provides 10 KSD as collateral and receives a loan of 100 USDC deposited by Cheolsu.
- The 100USDC loaned will be converted to KSD and deposited into Kokoa Finance.
- Over time, Younghee’s debt remains constant without interest, while Cheolsu’s balance increases.
Advantages of Shoebill
Borrower:
Existing lending protocols are designed to require borrowers to pay variable and high interest rates. At Shoebill, you can get a loan with an interest rate of 0% if your loan rate is below a certain loan rate.
Some other protocols also offer low-interest loans but require a fee to open or close a loan position. Shoebill has no fees and borrowers only have to pay for gas. Additionally, many of the lending protocols issue their own stablecoins, which introduces pegging risk. Shoebill, on the other hand, allows users to borrow only safe stablecoins such as USDC, USDT or DAI.
Lender:
Shoebill is designed to provide high and stable returns to creditors.
Because staking APY is more stable than market-determined interest rates, Shoebill’s interest rates are more consistent than traditional lending protocols. Additionally, non-loaned liquid funds are deposited in other protocols such as Klayswap to earn additional interest.
Shoebill launched
Please check the official launch of Shoebill Finance on social media channels.
Please check Shoebill’s latest updates through the community channels below.
