• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Breaking News: Breaking: DCG And Genesis Close Initial Agreement With Creditors
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Breaking: DCG And Genesis Close Initial Agreement With Creditors
Advertisement

DeFi Platform SYNC Launches NFT-Powered P2P Lending

Bitcoinist by Bitcoinist
1 year ago
in Industry
0
Advertisement

The DeFi and NFT platform, SYNC Network, recently announced the launch of peer-to-peer lending on its platform to offer heightened security to lenders.

SYNC, the Ethereum-based platform, aims to mitigate risk and bring stability to the DeFi space with the help of time-locked, reward-generating NFTs called CryptoBonds. To put this into perspective, the value of 1,800 CryptoBonds created so far has seen an average increase of over 203%, which easily covers the recent downtrend in crypto that led SYNC to drop by 75%.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!

Ever since its inception, SYNC has seen steady growth and has recently managed to bag collaborations with some prominent names in the DeFi space such as TrustSwap (SWAP) and DexTools (DEXT). Now, in a recent development, the SYNC Network announced the launch of 100% secure peer-to-peer lending on its platform.

The platform claims that this move is enabling users to lend and borrow capital on CryptoBonds in a trustless manner. Borrowers on the platform can use the CryptoBonds, which consist of the liquidity pair and equivalent SYNC tokens, as hard collateral to borrow capital. Within the SYNC ecosystem, the duration of the loan and the rates of interest are dynamic and are agreed upon by the borrower and lender.

According to the developers of the SYNC Network, this method of lending against a CryptoBond can provide unprecedented levels of security for lenders and borrowers alike. Borrowers on this platform are not subject to minimum collateral maintenance. If the value of the collateral fluctuates during the course of the loan, borrowers do not get liquidated.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

For lenders, the collateral is stored in ESCROW for the duration of the loan. If the borrower fails to pay the loan, the lender becomes the new owner of the said CryptoBond, protecting the lender from financial risk.

The lender also gets a promissory note NFT — a debt note much like real-world promissory notes is a tangible representation of the loan. If at any point the lenders want their lent sum of money back before the specified maturity period, they can sell their NFT on an NFT marketplace. The user who buys their NFT would become the new lender while the previous lender would get back his funds without the liquidity being disturbed.

The introduction of P2P lending against a new asset class — CryptoBonds — could potentially create a safe space for both borrowers and lenders. It can strengthen the DeFi ecosystem by ensuring that the liquidity in the CryptoBond is untouched through the entire ordeal.

While the SYNC Network is currently deployed on the Ethereum mainnet, the platform is working on a version 2 (V2) network that could come with multichain and multi DEX functionalities, taking a big leap into the wider DeFi ecosystem.

Incentivizing Long-Term Liquidity Providers

The rise of the staking culture in DeFi has opened up new possibilities for projects and traders in the ecosystem. Staking has become a popular way for DeFi projects to create liquidity and build a trustless network, whereas, for traders, staking presents new opportunities to earn rewards with their assets. This simple mechanism became so popular that ETH holders have recently staked $14B worth of tokens on the newly launched Ethereum 2.0 network.

Despite such popularity and success, the present-day staking mechanics are one of the biggest contributors to the volatility in the ecosystem. Staking platforms allow users to withdraw their funds at any given time, creating a lack of liquidity and a downfall of otherwise promising projects. The SYNC Network, however, claims to have found a solution to evade this problem.

The network introduces a new asset class CryptoBonds that are reward-generating, time-locked NFTs.  A CryptoBond consist of two halves — the first comprises liquidity pair tokens and the second comprises the equivalent value in SYNC tokens. Users are first required to provide liquidity to Uniswap to receive the corresponding LPTs. Then these LPTs are locked along with an equivalent amount of SYNC tokens to create a CryptoBond.

Users can create CryptoBonds for a fixed time frame that lasts anywhere between 90 days to three years. These bonds rake in revenue from liquidity provision and also interest on the SYNC part of the bond. Once the bond is matured, users can pocket the locked SYNC tokens and also the newly mined SYNC tokens. The longer the duration of the bond, the higher is the APY on SYNC, therefore incentivizing long-term liquidity providers. The SYNC Network says that these rewards can outweigh regular staking rewards.

Users who want to exit their position before the stipulated time frame can simply sell their CryptoBond on NFT marketplaces as CryptoBonds are still just NFTs at their core. The liquidity locked in the bond remains untouched through this entire ordeal, creating a sense of stability for investors and projects alike. They can also use the bond as collateral for a loan on P2P.

What Does the Future Entail?

CryptoBonds, though relatively new to the marketplace, has seen substantial success so far. There are over $6M worth of crypto locked across all 1800 bonds that have been created. By making them the staking standard in DeFi the projects in the ecosystem will have a fool-proof way of incentivizing long-term stakers and farmers in the network. Time-locking liquidity ensures that only serious users get on board, effectively avoiding pump-and-dump episodes. This, in turn, mitigates risks for investors and creates a safe space for all players of the ecosystem.

 

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Bitcoinist

Bitcoinist

Bitcoinist is the ultimate news and review site for the crypto currency community!

Related Posts

Cross-Chain Bridge Allbridge Integrates Polygon

Cross-Chain Bridge Allbridge Integrates Polygon

3 days ago
Best Online Slots Of 2023: Top 10 Platforms To Play Real Money Slot Games

Best Online Slots Of 2023: Top 10 Platforms To Play Real Money Slot Games

6 days ago
I didn’t know how terrible privacy was in web3 until I found DERP

I didn’t know how terrible privacy was in web3 until I found DERP

7 days ago
Bitcoin Heading to $28,000 Next? All Eyes Now on P2E With Bullish Crypto

Bitcoin Heading to $28,000 Next? All Eyes Now on P2E With Bullish Crypto

7 days ago
Everscale Secures $5 Million Through Strategic Partnership With Venom Futures Fund

Everscale Secures $5 Million Through Strategic Partnership With Venom Futures Fund

7 days ago
The Most Anticipated Mining Release of 2023:  NEO Shatters Records

The Most Anticipated Mining Release of 2023: NEO Shatters Records

1 week ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • ALTCOIN DAILY TO PRODUCE AND STAR IN NEW “SHARK TANK OF...

    4 hours ago
  • SinVerse Studios Announces $1 Million Buyback Program for...

    4 hours ago
  • Join the Revolution: Invest in STARSTAKING for 25% APY and...

    4 hours ago
  • The Crypto Bull Market Trend Has Started! What Does This...

    5 hours ago
  • Orbeon Protocol (ORBN) Grows 1625% During the Presale...

    6 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.