What is Myso Finance? Myso Finance is a lending platform deployed on EVM with a special lending mechanism called “Zero Liquidation Loans”. For current Lending platforms, users can High possibility of facing the risk of liquidation of loans if their collateral drops to a certain threshold.
How has Myso Finance been born with a new mechanism that has changed the Lending game? Let’s go to the article below to understand better!
To understand more about Myso Finance, people can refer to some of the articles below:
- What is Lending & Borrowing? The Essential Borrowing and Lending Puzzle in DeFi
Overview of Myso Finance
What is MYSO Finance?
Myso Finance is a lending platform deployed on EVM that allows zero-liquidation loans (ZLL), this mechanism of MYSO helps borrowers limit the risks related to loan liquidation. when collateral drops to a certain level. Myso’s goal has two main criteria: Simplify loans and provide new strategies for liquidity providers
Myso Finance’s operating mechanism
Anyone can create a liquidity pool on Myso. Each liquidity pool will be determined by required indicators:
- An asset pair (eg: wETH – rETH, rETH – RPL)
- Maximum loan amount is based on the amount of collateral (eg: Collateral 10 RPL will receive 117 USDC)
- Loan period (Depending on Pool creator, eg: 40 days, 90 days,..)
- Interest rate model
After the Pool has been created and liquidity is provided by (LPs), lenders are allowed to mortgage assets to borrow (eg: Collateralizing RPL to borrow USDC). And then, the borrower must repay the loan amount plus a fee to get the original property back. On the lender’s (LP) side, their assets will be locked until the borrower has repaid their money, and then the LPs will receive a percentage of the profits from their lending.
According to MYSO’s design, if borrowers do not repay their loan before the ZLL expires, they risk losing their collateral. On the LPs side, MYSO allows them to earn a yield on the risk that the loans will not be repaid or the collateral will decline in price.
EXAMPLE OF HOW MYSO FINANCE WORKS
Let’s say you hold 1 ETH is worth $4,300 USDC and want to borrow USDC in exchange for it for 40 days (e.g. until December 31)
- Platform provided for you $2,202 USDC cash upfront at an APR of 12.9%, with an implied LTV of 51%.
- You receive $2,208 USDC and lock up the collateral. This means that on December 31st you will get your 1 ETH back with a fixed refund amount of $2,240 USDC (=13% APR).
- After a few days, the ETH price suddenly dropped to $2,700, implying a new LTV of 81%. On other platforms, when your LTV is this high your collateral will be liquidated immediately. But with MYSO, even though the ETH price has dropped, your 1 ETH collateral has not been liquidated and you will still get it back on December 31 with the same fixed refund as before.
Development Roadmap
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Core Team
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Investor
Myso Finance is invested by many large funds with extensive experience in the market such as: Houbi, Nexo, Wintermute,…
- April 29, 2022: Myso Finance has raised $2.4 million USD in Seed round and the investor list has not yet been announced
Tokenomics
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Exchanges
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Project Information Channel
- Website: https://www.myso.finance/
- Youtube: https://www.youtube.com/@MysoFinance
- Discord: https://discord.com/invite/AUTBZdxpUP
- Twitter: https://twitter.com/MysoFinance
- Telegram:
Summary
MYSO is the new flavor in the Defi market. With the special mechanism “Loan not subject to liquidation (ZLL)”. Will MYSO bring attraction in the near future? Everyone, please read the article and give your personal opinion about this project. Hope this article brings a lot of useful information to everyone!