Lends Protocol serves as Thorchain’s primary decentralized application, transforming how individuals utilize their cryptocurrency for borrowing. It enables cross-chain lending at competitive rates by letting users take out loans against their Layer 1 assets without the need to sell them. This system is distinguished by its specific model featuring zero interest and no liquidations.
The native utility token, LENDS, functions in the following ways:
- Casting votes on approved assets, currencies, and oracles
- Staking to participate in protocol governance
- Receiving rebates on fees
The suite of LENDS tools comprises:
- L-1 Streaming Swaps: These support instant asset swaps across various blockchains, improving the speed and efficiency of cross-chain transfers.
- THORFi Lending: A decentralized service for crypto-collateralized loans that lets users leverage holdings without selling.
- THORFi Savers: A DeFi savings option that allows participants to generate interest on their cryptocurrency balances.
- Lending Orderbooks: This feature incorporates a clear, decentralized order book for lending to guarantee equitable and open access to loan options for every user.