ScaryCrypto

NFTs, WAX, Crypto, ...

[Eli5DeFi @Eli5defi]

The crypto ecosystem is experiencing sluggish expansion, and it's more than just technical challenges at play.

The market suffers from inefficient and scarce credit options.

However, a possible remedy may be on the horizon.

Let's explore in detail 🧵

...

— 📌 The Current Crypto Landscape

Traditional finance employs relending and fractional reserves to greatly enhance credit availability, stretching well beyond the initial capital pool.

This has led to a substantial chunk of financial assets being linked to credit, leverage, and debt—estimated between $300-$350 trillion—out of a total $469 trillion in global assets.

On the other hand, the crypto market does not currently leverages fractional reserves. Only an estimated $30 billion of the $2.5 trillion in cryptocurrency holdings are used for lending purposes.

Blockchain is well designed to support a fractional reserve banking system. With liquid assets and a transparent ledger risks are significantly mitigated.

However, @relend_network aimed to shift this dynamic.

...

— 📌 Relend - Lend. Relend. Repeat.

In essence, Relend Network seeks to boost credit availability by implementing a relending strategy that leverages the fractional reserve token standard known as ERC-7770.

By using ERC-7770 or reTokens, token holders automatically become lenders, and borrowers generate new tokens when they borrow. Interest is allocated among holders through rebasing. Additionally, with ERC-7770, any ERC20 token can be borrowed by default.

This approach produces a money multiplier effect similar to that of fractional reserve banking.

For illustration:

▶️ A user deposits $1000 into Relend Network
▶️ Multiplier set to 10x, making available amount to loan $10,000
▶️ Borrower interest rate is 3%
▶️ Interest split 50/50

For this scenario, let's see how it affect lenders and borrowers:

▶️ By starting with a $1000 deposit, the lender can enjoy a 15% APY from credit utilization.
▶️ Borrowers pay a 1.5% interest rate on their borrowed funds, reflecting part of the interest accrued
▶️ Should borrowers choose to trade their interest-earning USD for different assets, they must cover the entire 3% interest charge.

Relend Network achieves this by keeping all credit within its system, unlike traditional systems which require multiple lending cycles to achieve a similar outcome.

...

— 📌 Relend - Solving Liquidity Fragmentation

Relend Network offers a unique bridging feature through a developer-implemented contract, enabling the transfer of fractional reserve assets from Relend Network to various L2s by creating equivalent L2 tokens.

The backbone is its canonical lending market—a structure of collateral/debt pairings. Borrowers offer collateral to obtain debt tokens and must repay them to retrieve their collateral.

Differing from conventional models, this setup doesn't rely on direct lender liquidity. Instead, debt is generated on-demand and is removed from circulation when repaid.

All loans require over-collateralization, and the platform initially targets blue-chip assets with riskier assets listed via credit delegation.

By design, this system prevents the liquidity fragmentation common in single-collateral/single-debt markets, while allowing the collateral to accrue yield.

...

— 📌 Relend Pre-Deposit Campaign

Looking to dive in now?

Relend Network collaborates with @bprotocoleth and @BlockAnalitica to bring you RELEND Units through @MorphoLabs vaults.

Here's why it's worth considering:

▶️ Pre-depositing in these vaults allows you to accumulate RELEND Units, with multipliers that vary by vault.
▶️ Once launched, pre-depositors can start relending, potentially enjoying up to 30% APY in returns.
▶️ RELEND Units might put you in line for potential future airdrops.

You can also farming RELEND Units via Telegram (link shared after this post), though keep in mind that Telegram points don't match the unit tally from the pre-deposit vaults.

[Relend Network @relend_network]

Relend Network partners with @usualmoney 🤝

We just added the USD0++/ USDC market to our Relend USDC Vault on @MorphoLabs

🌀Relend Network solves liquidity fragmentation of L2s with fractional reserve banking.

Excited to be supporting USD0++ as collateral! Allocating to this market (current APY of 10.7%), increases available liquidity for the Usual community to borrow USDC.

Pre-deposit: Earn RELEND units, MORPHO tokens and APY by supplying the Relend USDC vault👀

🪙What is USD0++?
USD0++ is an enhanced and boosted 4-year DeFi T-bill, secured by a principal locked in USD0 during 4 years, ensuring principal recovery. It allows users to benefit from the growth and success of the protocol. Unlike traditional models, USD0++ not only provides protocol revenues but also distributes ownership of the protocol through its innovative reward mechanisms.

🔜We look forward to early partnership steps with Usual and may be relending their assets once we are live 👀

[Relend Network @relend_network]

Relend Network pre-deposit campaign Season 1 is live on @MorphoLabs

Full campaign details: https://t.co/vpLPzmmx8l

Earn yield, MORPHO tokens and RELEND units!

🔍Relend Network leverages ERC-7770 to solve liquidity fragmentation of L2s by enabling the adoption of fractional banking.

Earn higher APYs with max units exposure in the Relend $USDC vault.

🛡️Wanna play safe? Get Relend Units for depositing into any of Morpho’s Flagship vaults (curated by @bprotocoleth and @BlockAnalitica)

Lend.Relend.Repeat

[Relend Network @relend_network]

A week into the pre-deposit campaign and already > $6m in the relend USDC vault.

📈 Currently highest native apy among all @MorphoLabs's USDC vaults
🌜Earn Relend Units on top of USDC yield
🤝 Borrow vs partners' collateral: @fraxfinance, @AngleProtocol and more coming soon 👀

[Relend Network @relend_network]

Relending ELI5

📜There is a village with a Chief, 10 villagers and 1 Village Bank.

🏦The Village Bank holds $1000 in cash.

The Chief owns all the houses.

👩‍🌾Villager 1 borrows $1000 and buys a house from the Chief, Chief deposits the money back into Village Bank.
👨‍🌾Villager 2 borrows $1000 and buys a house from the Chief, Chief deposits the money back into Village Bank.

Repeat with all 10 villagers.

The Chiefs bank balance now reflects $10 000.

Each of the villagers now owns a house🤯.

Village Bank holds fractional reserves of $1000
Village Bank is owed $1000 by 10 villagers,
total of $10 000 in credit.
Village Bank holds 10 houses as collateral.

Village Bank AUM: $21 000

🌀This is relending. We are bringing this to DeFi.

#relending

[ScaryCrypto @ScaryCrypto1]

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[ScaryCrypto @ScaryCrypto1]

@AaronLeupp @Waifumons 0x9e39cF0aA36823643D985872Ecefb300249595f5

[ScaryCrypto @ScaryCrypto1]

@AaronLeupp @Waifumons 0x9e39cF0aA36823643D985872Ecefb300249595f5

[ScaryCrypto @ScaryCrypto1]

@AaronLeupp @Waifumons 0x9e39cF0aA36823643D985872Ecefb300249595f5

[ScaryCrypto @ScaryCrypto1]

@AaronLeupp @Waifumons 0x9e39cF0aA36823643D985872Ecefb300249595f5

[ScaryCrypto @ScaryCrypto1]

@SweatEconomy 20,000

[ScaryCrypto @ScaryCrypto1]

@AaronLeupp @Waifumons @fancydcl @decentraland 0x9e39cF0aA36823643D985872Ecefb300249595f5

[ScaryCrypto @ScaryCrypto1]

🔵 BlueMob is here, ready and excited for $WOMBAT!

@xtatc @KryptoKali8 @kaylucard

[Wombat - powered by PlayMind @adoptwombat]

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[Wombat - powered by PlayMind @adoptwombat]

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⚡️1000 winners
⚡️2500 $WOMBAT per winner

Participate here👉https://t.co/tMzVv9IRzH

[ScaryCrypto @ScaryCrypto1]

Just had a fun zombie quiz at #dygycon12 with @TalesotCrypto :)

[ScaryCrypto @ScaryCrypto1]

@AaronLeupp @Waifumons @michi_todd @decentraland 0x9e39cF0aA36823643D985872Ecefb300249595f5

[ScaryCrypto @ScaryCrypto1]

@TheSandboxGame @aguerosergiokun @Kuniverse_GG Becoming a legend in the Kuniverse with @aguerosergiokun! ⚽

[ScaryCrypto @ScaryCrypto1]

@bank_of_hodlmar @MookieNFT sent me here, so now it seems I have some reading up to do...

[Bank of Hodlmar | SOLD OUT @bank_of_hodlmar]

Well, we have told you a little more about ourselves, and now we want to know more about you!

🎉 Tell us about yourself, your life and your ideas, and we will give some of you the first Whitelist Spots in our universe! (PINNED POST) 🔼

[ScaryCrypto @ScaryCrypto1]

@deeperkahlo 0x9e39cF0aA36823643D985872Ecefb300249595f5