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Integrating Financial Services into One Pioneering Platform: A New Dawn of Blockchain Lending with Nolus

Integrating Financial Services into One Pioneering Platform: A New Dawn of Blockchain Lending with Nolus

DeFi has made significant progress towards becoming a blockchain-based technology offering a system of financial rails that parallels traditional financial infrastructure.

To expand the digital innovation ecosystem and re-energize fintech, finance projects are figuring out how to integrate next-generation technology with finance. New technologies such as 5G, cloud computing, big data and artificial intelligence are breaking new ground in finance, leading humanity into a new era, from connecting people through connecting things to creating a fully connected intelligent world. As the world embraces these smart systems and smart homes, the financial sector is reaping the benefits of smart computing and automation capabilities through blockchain technology.

Blockchain has given birth to decentralized finance (DeFi), a new and exciting financial technology that gives centralized finance an edge. DeFi is building the future of finance with new and innovative financial infrastructure, moving away from the existing financial infrastructure used by traditional finance (TradFi).

DeFi is on an upward trajectory, with new financial models emerging every day in this ecosystem. Thanks to DeFi, we have investment vehicles such as liquidity mining, staking, and DeFi loans. Decentralized exchanges, among others. How can DeFi support this growth path?

Decentralized Finance as an ever-changing and ever-growing space

DeFi is a blockchain-based technology leading the fundamental change in finance through the creation of entirely new financial products and services that reduce dependency on the legacy gatekeepers and stakeholders of the TradFi industry. Let’s take a quick look at the transformative impact of DeFi on finance today.

DeFi lending/borrowing and DeFi staking

One of the most common uses of DeFi is in protocol-specific money markets. Users can borrow, lend, and stake on crypto assets, providing liquidity to a chosen protocol in various types of shared liquidity pools.

One problem with DeFi lending that most investors fear is the over-collateralization of digital assets. Over-collateral begs the question, why don’t users receive an amount similar to what they provide as collateral? The answer to this is that protocols need to be secure so they don’t become insolvent, and because of this need for security, said protocols offer over-collateralized loans. Undersecured loans do exist as an alternative. They lighten the burden on borrowers and allow lenders to get more for the liquidity provided to them through higher usage rates. . Insufficient collateral is preferred as it is more user-friendly and offers better financial performance.

Currently, network undercollateralization also comes with several trade-offs, such as some implementations relying on borrower trust, leading protocols to whitelist only certain borrowers, or even limit the allowable set of both lenders and borrowers. This is not a solution without a solution, and to rid the credit ecosystem of this hurdle, Nolus goes one step further:

  • Giving the borrower the opportunity to get more than he provides;
  • Come up with a completely undecidable function in which there are no restrictions on who can be a lender or borrower.

Decentralized Exchange Platforms

A decentralized exchange (DEX) is a peer-to-peer trading platform that connects buyers and sellers of cryptocurrencies and is non-custodial, i.e. the user retains control over their private keys when making transactions on the DEX platform. Since no central authority controls the DEX, platforms deploy smart contracts that automatically execute according to set conditions and record each transaction on the blockchain.

In addition, we have separate DeFi projects with new embedded technologies that are changing the financial scene in their own right. One such project is the Nolus protocol, which provides the world’s first DeFi Lease for decentralized finance.

Nolus protocol pioneers innovative change in DeFi

As the future of Web3 finance suite, Nolus brings innovative approaches to the money market with its unique rental solution to further modernize the DeFi space. They have an inclusive, intuitive, and easy-to-use solution to enable mass adoption of DeFi. The goal is to bring TradFi and DeFi together using a holistic approach that leverages the various financial tools and benefits that decentralized finance brings.

Leasing/lending on Nolus

The protocol incorporates traditional lease financing into DeFi Leasing, offering the solution most people are used to – buy now, pay later. By not requiring users to be financial experts, they can get a larger amount of their desired digital asset than their current equity balance without having to worry about hard margin requirement formulas or complicated loan fee structures.

Fiat on buildup is a proposed part of the Nolus DeFi lending facility, which is actually under development, where users can exchange fiat currencies for cryptocurrencies. Once launched, users will be able to take advantage of this DeFi Lease solution. When there is an increase in fiat money on Nolus, users can transfer fiat money or cryptocurrency from a cryptocurrency-enabled bank account/debit/credit card/wallet, make an upfront payment of the desired amount, and approve the smart contract.

With Nolus Defi Lease, users have complete freedom to customize their network contract settings.

Some key features of DeFi rentals include:

  • Funding up to 150% of the initial investment.
  • The liquidation rate is 40% lower than the market average.
  • Overall funding and transaction costs are low.
  • Ownership of assets belongs to the user.
  • Credit self-sufficiency mechanism.

Integrating various financial services into one platform fuels the growth and adoption of DeFi

The widespread adoption of DeFi technologies, such as the Nolus protocol discussed above, is giving rise to a new paradigm of financial products and services using blockchain and tokenized digital assets. Users can use DeFi as an investment vehicle to access other financial instruments such as lending, staking, derivatives trading, borrowing, or even Nolus’ new DeFi Lease solution.

To learn more about Nolus and its unique products and services, visit their social media:

Website | Twitter | Discord | Telegram | The documents

Written by khirou

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