Place/Date: – October 10th, 2020 at 2:19 pm UTC · 5 min read
Source: Cheese Bank
In 2020, DeFi is quietly causing changes in the distribution of global wealth. the real benefits will be felt by users in developing countries more so than anywhere else.With just a smart phone and an internet connection, people from all over the world have the ability to gain exposure to invaluable resources without restriction.
Makerdao, which has gradually attracted attention, provides the concept of liquidity, leverage mechanism and revenue amplifier. Compound, which was launched in the later stage, has made the whole community boiling with yield-farming. From May to September, the total value locked of DeFi contracts exceeded an astonishing $11.3 billion. However, the rampancy of scam has once again defeated the upsurge of investment sentiment, and gradually let the community return to the value oriented investment logic – the next project with real innovative value has been looking forward at present.
Recently, Ender Xu, GSR Matrix Fund Managing partner, mentioned in an interview that the innovative mechanism of ” the liquidity pool (LP) token collateral” in cheese bank lending protocol may seize the future development opportunities in the field of DFI lending. Ender Xu said: “One of the groups in real demand of mobility is DEX market-makers. They can gain profit from market-making after providing DEX with funds, but the voucher of the liquidity pool they get (LP) is a kind of assets lacking mobility—underlying assets, right to earnings and all other rights are deprived after selling in the secondary market.
Therefore, their liquidity terminates due to market making. The only solution is to allow them to pledge and loan with LP, similar to the model of pledging with stocks and real estates: assets, rights and interests are still theirs, but there is new liquidity gained, enabling them to further invest in other assets, and redeem assets simply by paying interest. This is a real model that improves liquidity. Cheese Bank detects such an opportunity, therefore, I propose it as a case here and look forward to their subsequent development.”
On September 30, Cheese Bank, a decentralized digital bank officially launched its innovative lending service for creating an upgraded version of compound through innovative mechanism, to convey the concept of “cheese for everyone” to all users. With multiple benefits for three stages of development , Cheese Bank has devoted it’s whole heart to investors.Furthermore, Cheese Bank Smart Contract successfully passed the Security Audit of SlowMist technology on October 8.
- The first stage: start yield farming — deposit as farming (support both “single currency” and “LP tokens” to deposit ) and give a warm welcome with generous Cheese token incentives to appeal more community members, No pre-mining, no founder reservation, community owns all;
Due to the operating costs, it is difficult for current lending platform to share the entire profits to the community. This attempt of Cheese can be said to fully implement Defi’s determination of “Decentralized Autonomy”. In the short run, it can achieve higher benefits for users and create a more equitable yield-farming environment; in the long run, it will completely return the governance rights to the community and build community confidence and cohesion.
This is the first advantage of Cheese Bank which willing to share cheese for everyone.
How to earn Cheese through Yield-farming.
- The second stage: launch the lending service and innovative the liquidity pool (LP) token collateral mechanism. The LP token of each platform can be used as collateral in Cheese Lending Service. The LP token collateral mechanism is innovated and improved to promote the circulation of asset, so as to greatly improve the asset utilization rate;
Lending platform such as Compound only support mainstream currency types of “pledges and loans”, such highly liquidity assets of currency types can cash in at any time, even be used to buy other assets as basic currency type. Therefore, pledging and loaning with such assets in fact lower their own mobility (since the pledge rate is generally 7x%, obviously lower than the original assets).
Cheese Bank allows investors to pledge and loan with LP tokens, similar to the model of pledging with stocks and real estates: assets, rights and interests are still theirs, but there is new liquidity gained, enabling them to further invest in other assets, and redeem assets simply by paying interest. This is a real model that improves liquidity.
At the same time, in order to encourage users to participate, cheese will also start yield-farming in this stage, and users who participate in Cheese lending will reach to triple benefits at the highest level! Whether APY1000 + will appear again, I believe we could ready to wait.
Hasn’t the second advantage attracted you yet? The surprise goes on!
- The third stage: Creating an upgraded version of compound—launch the mechanism of lending liquidity pool customization and the mechanism of mortgage in freedom.
According to the white-paper of Cheese Bank, the ultimate goal of cheese lending service is to make the circulation of assets no longer be constrained, set users to be completely free, and propel the DeFi lending go forward to a new era.
The mechanism of lending liquidity pool customization- just like Alibaba in the field of DeFi lending, everyone can freely customize the lending liquidity pool and take what they need; launch the mechanism of mortgage in freedom — users with cheese token can freely choose and participate in the lending of any asset, and according to the consensus of community, the mortgage rules of the lending liquidity pool can be freely designed. Community dominates the whole lending liquidity pool, and truly realize the goal that any asset can be mortgaged and borrowed to promote the circulation of more currencies. Furthermore, realistic high-quality assets can be mortgage in Cheese Bank.
This is the third advantage and the final mission of Cheese Bank.
After the miracle created by Compound, younger generations like Cheese Bank shows its ambition. How does Cheese taste? Some of the participants yelled “YUMMY!”
