Solend V2 White Paper Release on Solana Loan Agreement

03/06/2023 05:40 • Crypto & Markets • 71 views

It is reported that Solend has released the Soland V2 white paper on the loan agreement on Solana to introduce risk management and improve decentralization. According to the white paper, Solend V2 will include: protected collateral, TWAP oracle, loan proportion, outflow rate limit, mortgage limit, isolation layer assets, dynamic clearing bonus, trilinear interest rate model, risk authority, on-chain metadata, disposal of abandoned assets, on-chain liquidity mining without permission, account entrustment, lossSocializing, etc. Solend V2 will be released in the next few months.

Solana’s lending agreement Soland released the Soland V2 white paper to introduce risk management and improve decentralization

Interpretation of the news:

Solend, a peer-to-peer (P2P) decentralized lending platform, has released its Solend V2 white paper, which outlines the key features of the loan agreement on Solana. This white paper aims to introduce risk management and promote decentralization, ensuring a transparent and fair ecosystem for users.

One of the significant features of Solend V2 is the inclusion of protected collateral. Protected collateral acts as a mechanism to protect users from liquidation during market volatility, by providing guaranteed liquidation prices. This assures users that their investment is secure and protects them from major losses.

Another notable feature is the TWAP oracle, which updates the price oracles at intervals to reduce the likelihood of unforeseen price crashes. The loan proportion and outflow rate limit are implemented to help modulate the risk associated with loans by setting limits on borrowing, ensuring the platform’s sustainability.

Moreover, to maintain a safe market environment, mortgage limits and isolation layer assets would be employed, helping to prevent market manipulation and reduce the risk of systemic vulnerability. Dynamic clearing bonus and trilinear interest rate models would also be used to incentivize behavior that promotes platform growth and stability.

Furthermore, the implementation of risk authority is critical in achieving the desired transparency and accountability in a decentralized lending platform. This grants additional authority and responsibility to stakeholders to ensure that the platform’s risk management and sustainability are upheld.

On-chain metadata, disposal of abandoned assets, on-chain liquidity mining without permission, account entrustment, and loss socializing are incorporated to encourage user participation, connectivity, and mutual support.

In summary, Solend V2’s proposed features highlight the platform’s bid to create a more decentralized and risk-averse lending platform. By implementing various mechanisms to reduce undue risks while promoting user participation, Solend aims to provide a level playing field that fosters mutual benefit and promotes financial access for all.

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