Decentralized Lending: Empowering Your Financial Control With LayerBank
I couldn’t help but notice that with conventional lending, our hard-earned money is often controlled by centralized institutions. This is a problem that exposes our financial privacy & also limits the way we use our funds. This system of finance isn’t really favorable to users.
Borrowers have to go through a long complicated process, and when they get the money, they are faced with high interest rates on it. People who choose to save their money as a safe option are faced with limited avenues for growing their funds.
My search for a solution to this problem led me to LayerBank (formerly, LineaBank). A beacon of change using the technology of decentralization to offer a solution that empowers users, promotes privacy, and optimizes the way we make use of our funds with its lending platform.
Let’s explore this trailblazing protocol together.
What is LayerBank?
LayerBank is an EVM-compatible lending protocol built on the Linea Blockchain. With a decentralized market, it gives users complete control of their funds and offers competitive interest rates that benefit everyone. Individuals can contribute assets to LayerBank, borrow funds, and earn $LAB tokens as rewards for their activities. It’s a direct transaction between the users and protocol, without involving intermediaries.
How Does LayerBank Benefit You?
- Security & Privacy: We mentioned how centralized instructions expose our financial privacy. LayerBank prevents that by utilizing zkEVM technology to ensure transactions are secure and private, thereby safeguarding our financial data.
- Financial Autonomy: It allows users to transact directly with the protocol, without relying on middlemen.
- Fee Sharing: It has a revenue-sharing model that shares platform fees weekly, adding to users’ income based on the amount of $LAB token they stake.
- Competitive Interest Rates: Holders of $LAB tokens can experience higher Annual Percentage Rates (APR) when lending, which potentially increases their ROI.
How Does Lending and Borrowing Work?
1. When you as a user provide liquidity to LayerBank’s supply market, you receive lTokens which represent your portion of the overall loan pool. Over time, the value of these tokens grows due to the accumulation of interest from borrowers. When you close the loan, you return the ITokens you received and gain a higher value than what you initially provided.
2. On the other side of the pool, a borrower has to provide collateral if he/she wants to borrow funds. If the collateral value falls below the borrowed amount, the borrower’s position is liquidated and LineaBank returns the value of the collateral to the lending pool, and returns the remaining assets to the borrower.
All About $LAB.
LayerBank’s native token $LAB is used to reward users of the platform and carry out a suite of activities, which include:
— Staking
— Lending
— Governance
To ensure fair distribution & transparency, LineaBank has outlined its tokenomics as follows:
Max Supply: 100 Million
9.2%: IDO
44.5%: Liquidity Incentives
1.5%: Initial Liquidity
15%: Development Fund
15%: Ecosystem Fund
11.8%: LineaBank Treasury
3%: Pre-Mining
The image below details the distribution schedule of $LAB:
Key Features of LayerBank
1. Yield Boosting: This feature is designed to profit holders of $LAB tokens. It increases the Annual Percentage Rate (APR) for those who have a higher stake of $LAB. Basically, the more tokens you possess, the more interest you can earn when using LayerBank to lend your assets.
2. Revenue Sharing: As I mentioned above, this model distributes platform fees generated from various activities to users. This distribution is based on the amount of $LAB tokens the users hold. With this model, users get a portion of LayerBank’s profit, thereby increasing their stream of income. A viable way to empower individuals.
3. Automatic $LAB Buyback and Burn Systems: A novel mechanism put in place to help prevent the devaluation of $LAB. When users claim their share of platform fees, LayerBank uses some of the revenue to buy back $LAB tokens from the market. These tokens are then burned to help reduce the overall supply of $LAB. This could potentially lead to an increased value for the remaining supply, consequently strengthening the economic foundation of the LineaBank ecosystem.
These tokens are then burned to help reduce the overall supply of $LAB. This could potentially lead to an increased value for the remaining supply, consequently strengthening the economic foundation of the LineaBank ecosystem.
LayerBank’s IDO
Launched on August 7th, the IDO is scheduled to run for 12 days and end on August 18th. Here’s an outline:
— Initial Marketcap: 1.20M
— IDO allocation: 9.2M $LAB
— Listing Price: 1 $LAB = $0.15
— Hardcap: 600 ETH
— Vesting: 30% at TGE and 70% linear vesting over 7 months.
LayerBank is the first and currently the only lending protocol launching on the L2 chain, Linea. As a front-runner on the Linea Mainnet, it provides its users with a cutting-edge platform that seamlessly integrates blockchain technology for lending and borrowing activities.
This in turn provides them with the opportunity to utilize the ecosystem to protect their funds and maximize them. With a goal to empower the common man & redefine how lending systems operate, I believe LayerBank is the solution we’ve all been awaiting.
Do NOT miss out on this revolution! Find out more information on LayerBank here.
To excel in the Web3 space, you need to build a network. Follow me on Twitter @0xFybi, let’s connect and share ideas. I look forward to meeting you!
