The invention of the blockchain has brought new possibilities to the field of finance. Whether we’re talking about countless new applications of blockchain finance or the emergence of DeFi (Decentralized Finance), this new ecosystem based in the native virtual currency community has been overwhelmingly positive in its impacts. Moreover, it shows the new innovations that blockchain technology provides to the global economic system.
The conventional financial system has created huge volumes of wealth, but due to its practices of centralized management, and opaque system management practices, a number of problems have emerged, including unfair resource distribution. For example, one such hotly-discussed international issue caused by uneven resource distribution is the recent establishment of the European Super League. As football becomes more and more divided and inequality in the industry becomes more and more severe, the question of how to break through this deadlock becomes increasingly critical.
The creation of the blockchain has brought new possibilities to the field of finance. There is no doubt that a paradigm shift is taking place within the finance industry. Simultaneously, with the emergence of DeFi, a total reform of the global economic system is imminent, and it is in this context that a brand-new decentralized financial lending agreement system has emerged: that of Layer.
How BSC Will Redefine Your Loan Agreements
Layer is an open-source, non-custodial crypto asset lending protocol that first launched on Binance Smart Chain (BSC). It supports all BEP-20 asset deposits & lending via the layer.cash platform, through which users (or project participants) can deposit any type of BEP-20. In addition, users who wish to lend out their assets can also deposit the pledged assets they hold in the Layer through over-collateralization, then lend out their loan target assets.
As the first project to have been incubated by Layer Labs, the Layer protocol has necessarily received strong support from Layer Labs. From the earliest stages of the project, the entire agreement framework, community government process, interactive nodes, and other project elements underwent intensive qualitative appraisal, and Layer undergoes thorough daily governance inspection routines. Layer has a both strong ethical and practical foundation, and these assets have made it able to achieve many unanticipated gains.
The reason why Layer is built on the Binance smart chain (BSC) is that this allows a convergence of the BSC lending track’s strong development prospects, lower fees, and faster speeds, as well as a more expansive business ecosystem. Thanks to Layer being based on the BSC , its transaction fees are only one-tenth of the transaction fees charged by Ethereum, and ordinary users have their threshold for direct participation in DeFi greatly reduced, thereby allowing them to better enjoy the value and experience brought by the decentralized finance of the world of blockchain.
A Next-Gen Solution: Layer’s Four Major Innovations
In terms of the functions of the Layer protocol, Layer generally provides four types decentralized financial services, including deposits, mortgages, liquidity mining, and leverage support. So what makes it stand out from the other extant lending contract systems?
·A. The Layer Lending Protocol is the first system to support deposit and lending functions for all BEP-20 tokens. It is highly adaptable, and with the support of the enormous BSC lending and lending track ecosystem, it provides a wide range of users with an easy on-ramp to starting to make deposits and loans. Thus, it can be said to have laid a strong foundation for its user base.
B. Layer uses a model of multiple borrowing pools. Compare this to the problems caused by single fund pools, which feature increased risk while preventing many additional funds from participating. In the Layer protocol, risks are isolated from one another to avoid these issues.
C. The Layer protocol also supports short-selling strategies with minimal leverage, which improves the utilization efficiency of funds in further providing users with a degree of utilization, creating much more room for creative entrepreneurship.
D. The release of the platform’s LAYER tokens will be carried out with zero pre-mining and a completely fair start. Among all issued tokens, 80% (80 million) of the total issuance will be owned by the community, and the distribution will be completed through liquidity mining to ensure the just and fair participation of all users
Layer features the world’s first deflation model, which promotes the continuous destruction of DIP through lending spread handling fees, and reduces existing DIP circulation. Continued borrowing activity thereafter will necessarily result in the continuous and stable appreciation of DIP.
At the same time, as lending spread promotes the continuous destruction of value tokens, the implementation of a 100% liquidity mining reward mechanism will aim to stimulate and reward early mining communities, volunteers, institutions, wallet users, and other stakeholders who have truly made outstanding contributions to Layer. Moreover, this ecosystem will be completely self-constructed and operated by the community. Everyone in the community will mutually benefit from the success of the platform and participate in collective decision-making.
Layer’s Imminent Launch Will Break the DeFi Ceiling
If DeFi’s potential problems can be resolved, it may lead to a paradigm shift in the financial industry, and may contribute to the establishment of a more robust, open, and transparent financial infrastructure, within which Layer will play a starring role.
It is reported that the Layer protocol will bring a lending-to-mining agreement online at the end of this month, position lossless mining in its first week, and its initial APY (annual percentage yield) is expected to reach 1000%. Users can mine $LAYER via collateral which generates loans and creating a loan-and-collateral relationship. The total number of $LAYER tokens will be 100 million, 80% of which (80 million tokens) will be owned by the community. The distribution will be completed through liquid mining. Within four weeks of the initial launch, nearly 10 million $LAYER tokens were allocated as rewards to the community. The currency’s high APY is intended to encourage mass participation, while the first launch of the Binance (BSC) smart chain lending agreement and its automatic recommendation function will complete the construction of the platform’s aggregation, DEX, and other functions. Completing the layout of Layer’s ecosystem will greatly simplify user operation processes for ordinary investors participating in DeFi mining, as well as reducing participation costs, and will promote more users to participate in the DeFi wave, forming a positive closed-loop mining business.
Based on the stable appreciation of the Layer protocol ecosystem’s value, the growth of its core token $LAYER is undoubtedly full of potential for the future. Whether we see the Layer protocol as a vehicle of wealth or an aggregation forum within the Binance chain, it is altogether worthy of further attention and research.
As DeFi continues to grow and expand, the Layer agreement protocol appears set to surpass its predecessors. How long before that brilliant future is realized? Stay tuned and find out with us!