Tezos Introduces Yupana, Its Initial Lending Protocol
Tezos is an open-source blockchain based on layer 1 of the Ethereum Network structured to be governed by the community. The respective attitude has been embraced to fortify a few of the significant blockchain factors.
The Lending Protocols
Lending protocols have been classified as the most crucial innovations within the DeFi sector since 2020. The well-known two names Compound and Aave are significantly famous as well as utilized on a broad scale. At present, the TVL of Aave is nearly $12B whereas $4B is the TVL of Compound. DeFi-based lending protocols, additionally considered to be the money markets, permit the lending of assets to earn interest in a decentralized manner.
If an individual is interested in borrowing some assets from a protocol, he is allowed to do so. That is why the most common utility of the lending protocols is for borrowing stablecoins and enabling people to leverage without any permission. Nonetheless, as opposed to conventional finance, in the crypto space, there is a requirement that the entirety of the loans should be collateralized.
Yupana’s Launch on Tezos
This is a reason that substantial resilience is shown by the crypto markets when they are hugely leveraged while the leverage vanishes via several liquidations, the systematic risks are also gone. Yupana, a lending protocol, will shortly be introduced on Tezos, and its position will be that of the initial non-custodial protocol of the money market operating on the blockchain. The project of Yupana is established on the behalf of MadFish, a prominent software development firm that has additionally constructed the Temple Wallet and the Quipuswap Dex.
As per the Blockchain Reporter, Yupana’s target is to spread the ecosystem of Tezos along with structuring the extra liquidity to the applications of Tezos. Within the DeFi space, the lending protocols are not much secure and even Compound and Aave are still confronting the exploits sometimes. Solend as well as the other such minor lending markets have specifically experienced difficult times recently.
Hazards Related to Minor Lending Protocols
The project of Solend was tremendously controversial while it was realized by the team that a single whale was dominating their TVL and that there was a hazard regarding liquidation. They attempted to transform their protocol into a decentralized autonomous organization and legitimize their decision of a forcible selling of the whale’s whole position OTC via a vote. Yupana is much minor as compared with Solend in terms of its present TVL of $150k, however, it could operate as a catalyst to increase the Tezos ecosystem’s adoption.
