A Why-What-How tour.
Larix’s vision is to anchor ourselves within the development of the Solana Ecosystem and help to strengthen it. As an important step in this process, we are glad to introduce the lending launchpad, a lending functionality involving more native-Solana tokens.
This is an experimental pool with far-reaching imagination. Let us explore it in a Why-What-How tour.
Introducing the Idea: Lending Launchpad
Up until now, Larix has only offered cross-collateral pools for supported mainstream assets. The motivation behind this pertains to security as Larix takes safety extremely seriously. As all assets can borrow against each other in the cross-collateral pool, supporting new assets will be a long and complex process.
A checklist of the criteria for potentially supported assets is as follows:
1. Strong liquidity pool, to prevent price manipulation.
2. Full control of token’s minted amount, to prevent over-minting or increasing supply.
Many tokens fail to meet the requirements. As such, Larix has decided to launch isolated asset pools alongside its existing cross-collateral pools, enabling more tokens to implement a lending functionality. This is where the name lending launchpad originated from, a way for launching new supported assets on Larix.
What is Lending Launchpad?
The core of Lending Launchpad is an isolated pool, offering isolated asset pools for SPL native tokens.
The biggest difference between the isolated pool and the main pool is assets in the isolated pool can only be borrowed against within the isolated pool. Think of it this way, non-mainstream tokens used for lending in cross-collateral pools can put the aggregate asset pool at risk as the likelihood of a bank-run on borrowed assets can occur. However, non-mainstream tokens supported in an isolated pool will limit the exploitation within the isolated pool, rather than putting the entire cross-collateral pool at risk.
To put it simply, the isolated pool can contain the risks to a certain degree. Therefore, with lending launchpad, Larix is able to list more tokens that can’t meet the requirements for the cross-collateral pool. You could say, the lending launchpad is a pathway for all SPL native tokens to participate in the lending market.
Assets that perform well in the isolated pool will also be considered for transfer to the main pool at our discretion.
Why is lending launchpad Important?
For project team:
1) Add utility to your token, which empowers token holders to use tokens as collateral to borrow out other tokens, which releases liquidity.
2) Enabling a trading strategy for longing or shorting tokens.
3) As a built-in single token staking pool, it allows users to earn depositing interest and helps the project team to lock tokens and stabilize the token price.
1) More aggressive parameters lead to higher utilization of funds.
2) Stablecoin rewards will be higher than the cross-collateral pool.
3) Users can receive rewards by depositing the token in the respective pool.
1) Lending launchpad enables risk isolation, the value at risk is limited to isolated pools, rather than the entire cross-collateral pool.
2）It helps to precipitate more long-tail assets.
3) It will encourage in-depth collaboration with more projects in the Solana ecosystem.
How to get your token listed on Lending Launchpad?
Sounds interesting yet? Can’t wait to have your token adopt a lending functionality? Fancy an aggressive collateral factor for your token?
If any of these excites you, please don’t hesitate and fill out the application form!
Larix is very excited about the new Lending Launchpad and we believe it will add considerable value to the broader Solana ecosystem！