Larix is the ultimate lending gateway on Solana. All valuable assets, including crypto tokens, stablecoins, synthetic assets, NFTs, and other assets (account receivables, invoices, mortgages, etc.) are soon accepted as collaterals to borrow crypto assets, generate yield, and power the real economy.
Phase 1: Jun-Dec 2021
Larix starts by meeting the essential need of automated cryptocurrency-lending on Solana. At this stage, crypto tokens, stablecoins, and synthetic assets are used as collaterals.
In response to multiple flash-loan attacks and malicious market manipulations, the collaterals will be selected cautiously and parked in several isolated pools in clusters according to underlying asset risk profiles. This is a more optimal way to control platform risk and protect both borrowers and lenders. We all know that a larger liquidity pool accommodates smaller slippage. The collaterals are rated and grouped by their market capacity, concentration risk, volatility, etc. As such, assets with distinct risk measurements could be managed separately to enhance risk management capability and reduce potential loss at the protocol level.
Larix adopts a dynamic interest rate model to manage liquidity and avoid “Bank Run” when depositors need to withdraw from the pool. Liquidity pools across different tokens are an essential part of Larix. The carefully designed interest rate model is created to incentivize both borrowers and lenders by rewarding them Larix tokens. A Decentralized Autonomous Organizations (DAO) will be introduced to Larix through voting and governance tokens. Critical matters, such as changing mortgage factors, adding/removal of collateral tokens, and special acceleration in certain mining pools, could be decided through DAO proposal voting.
Phase 2: 2022 onwards
The protocol extends the collateral base to accept non-fungible tokens (NFT) and enables peer-to-peer lending across all asset classes. In general, all valuable assets in our digital wallets should find their places and value propositions as collateral to release liquidity. NFT starts to gain popularity in 2021 supported by celebrities, such as Linkin Park’s Mike Shinoda and the Weeknd’s genesis nifty collection. Increasingly more creators are joining the NFT hype train. CoinGecko pointed out that “despite its slow start, Google searches for ‘NFT’ far outstrips ‘Defi’ by March 2021.”
According to the exchange’s data, even sports-related NFTs, such as the NBA’s Top Shots, captured a nearly $28 billion market cap and still growing. Users who intend to supply liquidity and earn interest rates passively with their NFT assets or aim to adopt a more aggressive strategy to earn additional APY both need to be satisfied. Thus, NFT backed lending is on our roadmap.
Finally, tokenized ABS and wrapped NFTs, which serve as a bridge of the real-world asset to the digital arena will find their time to shine. To name a few, Account Receivable Factoring, Invoicing, Mortgage, Student Loan, constantly seek more flexible financing options from the digital capital market. Defi lending is the perfect vehicle to provide secure, customizable, and almost instance liquidity. Larix is working with multiple partners in this space to power the real economy.
Larix — the lending protocol on the Solana blockchain, adopted a dynamic interest rate model and created more capital-efficient risk management pools, as such a broad selection of collateral types can be fully utilized in a safe way. Furthermore, the rewarding system based on a delicately designed token economy enables continuous incentive allocation to boost real demands.
🌐 Homepage: http://projectlarix.com
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