The Everlend Project

Everlend is a lending/borrowing aggregator powered by Solana. Everlend was launched on the mainnet in early May and currently supports 10 asset and 3 money markets. Currently, the user who deposits with Everlend is able to receive a combination of constant rebalancing and a high yields provided by a battle-tested risk management framework. One of the main innovation features is credit management (automatic movement of debt positions between money markets).

Scope of the Everlend Project 

Essentially, credit management is what was instrumental in building Everlend in the first place. This issue gains even more importance because no one has done credit management effectively before. The Everlend team believes that in the current market situation, there is a greater need than ever for a product that makes the overall DeFi experience more secure, accessible and convenient for the average user.

Let’s explain the concept of lending protocol in order to better understand the subject. The lending protocol is one of the most common financial instruments on the blockchain. What distinguishes a DeFi loan from a traditional loan is that you don’t need to have a credit history accessible to everyone, instead, users need to deposit an assurance to secure their loan. The principle of accessibility is a core idea of DeFi loans and its main attraction that has made it so popular over the past few years.

everlend use case
Image 1: Everlend Use Case

Everlend was developed by Attic Lab and incubated by Delphi Digital. Both teams are quite well known in the crypto environment and have great expertise in creating DeFi products. The Everlend team takes into account and uses the experiences and achievements of other DeFi protocols such as Compound, Maker, Aave, Curve and Yearn Finance to create something truly unique and exclusive. The protocol is based on Solana and is written in Rust, all smart contracts are created from scratch for Everlend.

What is Offered to the User

Everlend users will be able to get features such as In-app Swaps via Jupiter or wallet-to-wallet messaging and notifications via Dialect integrated into our front in the coming weeks.

The plan for Everlend to gradually evolve into a community-led DAO has been in place from the very beginning of the project. The team, along with several community members, is currently investigating various use cases and utility types for NFTs.

Everlend consistently offers the highest return on deposits and the lowest interest rate on loans. As market conditions change, Everlend uses automatic rebalancing and refinancing mechanisms to continuously optimize the user’s position.

Let’s take a look at the terms rebalance and refinancing for a better understanding. Rebalancing is essentially a yield optimization. It is aimed to obtain the highest APY rate for the deposited amount. Liquidity is moved between protocols to ensure the user always gets the highest yield on the market. On the other hand, refinancing is about providing the lowest rate on your loan, which means loan optimization. Loans are automatically refinanced and moved between protocols to ensure that the user always pays the lowest rates on the market. This system aims to protect lenders from the risk of the borrower defaulting.

everlend platform architecture
Image 2: Everlend Platform Architecture

Using Everlend, the user is offered the following features:

  • Aggregation and optimization of liquidity. You will always get the best yield from your deposits.
  • Credit optimization. Loans are refinanced and moved between protocols to ensure the user always pays the lowest rates in the market.
  • Everlend accepts any liquidity token or collateral backed by the underlying platforms.
  • Separation of deposits and loans. User’s deposits and loans can be processed through 2 or more different MM (Market Maker) to maximize earnings. 
  • The battle-tested risk framework. All major currency markets are evaluated and scored. The final score acts as the key when deciding how much liquidity should be allocated to a particular lending protocol.

ELD Token

The ELD Token architecture is designed to enable EVERLENDDAO to assume protocol risk and protect lenders from the consequences of possible Shortfall Events in the underlying protocols. To protect users, Everlend uses a two-lobed architecture consisting of a Security Fund held in stable coins and an ELD stake pool held in ELD tokens.

The governance of the platform is carried out through a DAO, the main instrument of which is the ELD token and the reference implementation of the governance used as the basis is the SPL (Solana Program Library). Additionally, users will have the opportunity to stake and/or lock their ELD tokens in their DAO pools to assist the protocol and earn a portion of the platform revenue in return.

Funding

The Everlend team is thrilled to have successfully secured a $2.6 million strategic investment round, supported by some key players in the industry, after the seed round in October last year. The backers in the round include: GSR, Serum Foundation, Everstake Capital, Portico VC and several angel investors.

everlend investors
Image 3: Everlend Investors

The main motivation for this investment round was to accelerate the development process and overall growth of the product. Additionally, a portion of the funds will be allocated to the Safety Fund, an insurance pool that will be used to unite Everlend users in case of default or hacking of the underlying currency markets.

everlend lending aggregarator 1
Image 4: Lending Aggregator Everlend Raises 2.6M USD

Summary

In a nutshell, Everlend is a lending and borrowing aggregator that integrates with all major currency markets in Solana. Decentralized and reliable, it consistently provides users with the best returns and interest rates on the market.

Providing liquidity or obtaining a loan through Everlend, the user is completely relieved the need to monitor his portfolio and worry about the best rates or return optimizations and scenarios. The Rebalancing and Refinancing algorithms, the two main drivers of the protocol, automatically move deposits and/or loans to ensure the best performance for each position.

References

https://medium.com/@EverlendFinance

https://everlend.finance/

https://everlend-finance.medium.com/everlend-litepaper

Nothing on the website (cryptodataspace.com) constitutes professional and/or financial advice. All the content on the website is for informational purposes only. We have prepared all information herein from sources we believe to be accurate and reliable. However, such information is presented as is,” without warranty of any kind – whether expressed or implied. You acknowledge and agree that there are numerous risks associated with purchasing cryptocurrencies.