Dear Everlend community!
Attic Lab team is glad to observe the development of new ecosystems, which have been moving the industry forward. Forward means more secure, able to scale, and cost efficient in terms of operational activity on a ledger.
Why did we chose to build on Solana?
Solana is setting the stage to become the #1 choice for DeFi-hunters due to its outstanding characteristics and business model which are the basis to become a real DeFi haven. Attic Lab is thrilled to develop the cooperation within a rapidly growing Solana ecosystem: Audius, Human Protocol, HXRO, ICHI, Solstarter (Solana’s first IDO platform), tooling for Solana, etc. — these are developed in cooperation with our team. We do play long and hard.
Multiplying positive experience in terms of cooperation and investigating the ecosystem’s potential, we’ve decided to go further and deeper into a more fundamental level. Seeing Solana as a great value management system and just-in-time DeFi processing platform, a lending protocol product development was put as a target. Creating solid underlying financial infrastructure and building blocks is one of the main goals for any network that wants to focus on DeFi. And Attic Lab is here to boost it!
A lending protocol is an essential part of any value management infrastructure as a tool that allows people to secure themselves from price fluctuations, participate in IDOs and other investment opportunities including a better trading experience.
Because of all these advantages it seems like a logical and natural solution to build a lending protocol on a chain that can solve major DeFi industry issues — please, welcome Everlend on Solana!
Everlend Lending Protocol
This is a mission we, Attic Lab, are set out to complete by creating a decentralized lending protocol called Everlend Finance. Our goal is to provide a product that eliminates borders between networks and creates a unified financial instrument accessible from anywhere by anyone.
A decentralized cross-chain lending protocol on probably one of the fastest blockchains with in-built farming and support of liquid staking tokens. In its essence Everlend is built based on two core things: Solana SPL lending library and the Wormhole bridge. The first provides a functionality similar to Compound, while the second allows for cross-chain transactions to happen in a quick and decentralized manner. You can use Everlend processing native tokens of other blockchains without the need to sell or exchange them as long as there is a market for it.
Imagine you can have the same experience as you do on Ethereum when lending, borrowing or providing liquidity but you don’t have to pay exorbitant fees, your transactions happen instantly and on top of that you get the token that you can additionally farm and generate extra yield.
Last but not least: get blockchains’ interoperability as a key to an aggregated liquidity. Breaking barriers between assets on different networks is creating a united space to manage a value all together — (users from) different networks turn into liquidity providers. Let’s dive into details!
Cross-chain Interoperability
“Chain” within the word “blockchain” means unity. But there is still a big gap to fill when it comes to interoperability between different blockchains. Without the ability to interconnect and communicate with eachother, they might end up as huge data silos. Silos are inefficient when it comes to finance and liquidity in particular.
A lending market is still simple in its essence: more supply and demand streams — liquidity — bring more variety of assets it covers (due to multiple blockchain-participants) and positively impact exchange rates — efficiency, stability — while making financial tools more flexible. Both bring new market participants and support stability for swapping, multiplying farmers’ income due to growing turnover within the protocol. The loop is closed — push the Everlend ‘play’ button and reap your rewards either as investor, liquidity provider, or liquidator.
Everlend brings interconnectivity into the DeFi space: you are able to interact with the protocol with multiple L1 assets. No magic — Wormhole bridge is under the hood. It is packed into a user-friendly UI that allows you to navigate it with just a few clicks. Our Cross-chain feature allows users to move assets seamlessly across blockchains and to benefit from Solana’s high speed and low cost.
Interoperability is an essential piece to the puzzle, as it unlocks network effects and allows a seamless, efficient and trustless user experience on Everlend.
Leverage Yield Farming & Liquid Staking:
By interconnecting blockchains and being a liquidity aggregator Everlend provides regular farming service as a part of the platform. Variety of assets turn the protocol into a universal exchange hub thus the flow of assets needs appropriate support from liquidity providers. These actors are welcome and will get the reward they deserve.
Please pay attention to a special feature Everlend has: it is open to get into its profit making machine both via a free resource and an already staked one: it allows using the staked assets for other yield generating opportunities to let you get the best out of both sides — a reward on your staked assets, as well as the returns from additional investing activity.
Another core feature is liquid staking, which will be utilized with the help of Lido. The main cool thing about it is that the stSOL asset generates rewards through underlying staked SOL and so if you use stSOL as collateral, it allows you to generate extra rewards. Such a solution helps to aggregate liquidity in one place instead of dispersing it ineffectively among many networks. We are coming to rescue your liquidity from staking dungeons — give your assets a second life with Everlend.
Smart Order Liquidation
Liquidation is an extremely important part of the whole staking investment cycle. Efficiency of the service depends on the efficiency of the liquidation process, as soon as liquidated resources are generating the platform’s turnover — its internal stability and profitability have direct influence on the success of the platform externally (including the price of a service/governance token).
Everlend provides the solution to avoid lags and losses in the liquidation process, while liquidators sorting and proceeding with best deals leaving the worst behind its interests. Random fulfillment is substituted with a smart liquidation mechanic, which is based on a computed health score of each position to liquidate.
Liquidation is a separate business which is hunting its own efficiency. Thus smaller liquidation deals tend to keep pending status losing its “health” very quickly while getting full liquidation with losses frequently. That damages the system and all participants.
The solution is putting all liquidations into the heap where the best scored is on the bottom and the worst scored one is always on the top. To get the best — pass all the above. No hopping, no gas auctions — all the work must be done with no exceptions. Everlend upgrades liquidation in favor of both parties — users and service providers — seeing the mentioned mechanic as a win-win one.
Our team is going to unveil more technical details on the product in our Litepaper, which will be published soon! So stay tuned to get more information about our future DAO model and the idea of putting the product into the communitys hands. We will also shed more light on Everlends native token and its tokenomics.
