Lend Flare allows Curve investors to borrow against their LPs for a certain amount of period with a fixed borrow rate and no concerns for assets being liquidated due to price fluctuation. Curve LPs will not be lent out again but reinvest in Convex to ensure the maximum profit and give all back to borrowers. Investors can gain one of the highest supplied interest rate compare to current lending platforms.
For borrowers, Lend Flare deposits their Curve LPs back into Curve via the Convex and takes them as collateral, allowing Curve investors to continue earning their maximum profits from their LPs. Also, Lend Flare only lets borrowers to borrow the same pegged tokens i.e If you hold stethcrv, you can only borrow ETH. As a result, borrowers will have a higher collateral ratio.
For lenders, their supplied assets will be deposited into Compound to earn basic interest even the assets is not borrowed. When borrowers borrow assets, they will have a borrow rate no lower than Compound’s. Lend Flare then withdraws corresponding funds from Compound and transfers it to borrower. Due to high collateral ratio, lenders will gain a much higher supplied interest rate than Compound. More over, Lend Flare’s contracts are composable so the unused loan liquidity can be deposited into other platforms that provides the highest interest.
$LFT is used to encourage liquidity providers for Lend Flare, also attracts users to govern the platform. Investors stake LFT to receive VeLFT. VeLFT stands for vote-managed LFT tokens. The longer investor locks the LFT, the more VeLFT tokens investor will get.
Initially, LFT is to be generated about 0.7 million per day. The initial allocation ratio is set by the team and then can be changed by community. The allocation ratio depends on pool gauge weight.
Lend Flare’s IDO. Investors must use Ethereum to purchase LFT. The amount of LFTs released is 15% of the total amount of LFTs, i.e., about 450 million. 90% of LFT IDO amount and funds raised will go to Uniswap. Note that all LPs will be burned after forming liquidity. Then you can withdraw your LFT instantly after IDO finished.