LenFi v2 Launches with Major Upgrade for Cardano DeFi

Episode by Peter Bui on February 23rd, 2024

LenFi, a borrowing and lending protocol on Cardano, launches its new v2 of its protocol. Read the full details of all the features from LenFi v2.

Access all the LenFi open-sourced smart contracts.

Visit the LenFi website and start your Cardano DeFi journey.

Text Transcript

00:00
The LenFi team have released V2 of their borrowing and lending protocol and this is a big game changer. UI, UX, performance and security upgrades all packed into this brand new upgrade, making borrowing and lending on the Kedano DeFi space so much easier and so much better compared to before. Let’s get into it. This show is educational and it’s informative. Crypto’s the future, really it ain’t… So first up, big congratulations to the LenFi team for getting to this point. They’ve been working hard on getting V2 out there.

00:29
and I’m very impressed with it so far. And if this is your first time here on the channel, please consider giving me a thumbs up, click subscribe, click on the notification bell. I talk all things Codano and I cover the ecosystem as much as possible. So this is the article that goes through all the changes and I’ll go through this quickly to get you up to date with everything that is new in V2. Now they’re bringing in this brand new pool market design, this isolated pool market design and we’ll go through that.

00:55
in a little bit as well, but also allows anyone to open up a lending pool and become a pool manager. This is really good for anyone that is creating a token in the Cardano ecosystem and wants to create the pool themselves. It allows you to put in that liquidity and people can borrow and lend against that asset in that managed pool. So it’s really good. It creates that level of decentralization within the platform.

01:21
I thought this is a really cool feature that added in here and it allows anyone that is creating these managed pools to stake the ADA to any stake pool out there in the Cardano ecosystem to continuously earn those rewards while that ADA is waiting to be lent out. So I thought that was a really cool feature. Furthermore, the pool manager is managed by NFT and can be traded as a commodity. So maybe in the future if you’re managing one of these pools and you don’t want to participate in this anymore,

01:51
for sale and someone else can buy the managed rights to it or maybe you can even fractalize that NFT and then a community can take control of that as well. So there’s lots of cool mechanics around this and I love what the team have put in place. Now the tokenized debt bonds isn’t a new feature. They’ve had it on V1 but they’ve also integrated into their V2 of the protocol. You can see it here on their NFT bond market where you can buy and trade your loan positions on this.

02:19
particular marketplace. So you can exit your loan quicker by trying to find someone that would potentially borrow against that loan. So it’s a nice mechanism to make your loans a little bit more liquid. The new native multi-asset support is also a really good feature, allows anyone to put up a pool that borrows or lends against any token and ADA. So that makes it a lot more diverse and more flexible for anyone in the ecosystem.

02:43
The open liquidations is also an interesting feature in that it allows anyone to become a liquidator on the platform. So if you see that a loan is getting too risky in the ecosystem, you could potentially liquidate that loan and earn some of the collateral from it. They’ve got some documentation around this. So if you want to learn a little bit more about it, you can see this documentation. So they explain it here in simple terms. The liquidator repays the loan and receives part of the collateral to compensate.

03:11
debt plus fee. I will be doing some documentation and tutorials around this so if anyone wants to become a liquidator they can do so and earn some of the assets and fees for doing so. Now governance has always been a critical role in the Lenfie ecosystem and V2 is going to be the same. So the V2 ecosystem will rely on the Dow to manage whitelisting fee structures empowering the community to shape the protocols future. So it’s good to see that the Lenfie

03:40
keeping up with that DAO structure and governance on the platform. Now of course with any borrowing and lending protocol or any protocol that runs on smart contracts, security is always key and it’s really good to see that the LENFI team went through not just one but two audits through some really big Cardano ecosystem players, Anastasia Labs and TX Pipe, the creators of Aiken. So Aiken is powering all of the smart contracts for LENFI V2 as well.

04:08
Now a lot of things that came out of that audit were a lot of performance and UX improvements that were given to the team as well and it’s really good to see that some of those improvements were added into the final release of LenFi and I’ll show you that all in a moment. Now one of the really big things I love about LenFi and they’ve always pushed for open source and the V2 version of the smart contracts are all open source and you can get to them now already. You can see them here on their GitHub repo if you are wanting to learn how they’ve done it, how they’ve built it.

04:38
and audit the smart contracts for yourself, you can do so. You can see exactly how it all works. They’ve also run a bug bounty, $20,000 for their bug bounty program. So if you’re a capable smart contract developer and you wanna poke some holes at this smart contract, go ahead, you can earn some of that $20,000 in rewards.

04:56
Now early in the video I did mention isolated market pool design and this is a really cool security feature in that potential smart contract breaches only impact individual pools rather than the entire protocol. So if someone does manage to compromise one of the pools, it’s isolated just to that amount of TVL locked in that smart contract, which I think is a brilliant security design.

05:20
Now to make it easy for you guys, if you want to get into LendFi, there’s lots of documentation. I did go through this as well. There’s plenty of documentation on their website. It’s a little bit technical at some points and aspects. There’s a bit of coding here as well, but if you want to dig deep into how LendFi works, all the documentation is there. But I’ll be creating tutorials and course material around this. So if you want to learn more about LendFi, you can do so. You can get to all of that at learnCardano.io.

05:48
and then get your hands dirty in Cardano DeFi as well. So let’s have a quick look at the platform itself. And since its launch yesterday, we can already see we’re almost touching here at 3 million ADA in TVL on the platform. So we have all these pools here that have been created. We have a lot more pools than we did before and users can borrow and lend against all these assets quite easily. Now I do like the brand new.

06:13
pool design it makes it so much easier to understand the UI UX just makes sense. So here we can see end maker and ADA pool. We can either deposit assets into this or borrow ADA against it. So if I click on IAG for example, click on deposit, I can then choose how much I want to deposit into this pool. So let’s say I have a lots of IAG tokens, I don’t know what to do with them. I can add them to this particular pool. Click deposit.

06:40
deposit my IAG tokens into this and then earn some of the APR that’s from it. So you can see here the current supply APR is at 4.38%. So that’s quite a nice little return for supplying some IAG tokens on the platform. Now on the flip side if you did want to borrow some IAG it’s not too bad either. Maybe there’s a governance thing coming up and you need some more IAG tokens to get your foot in the door to make a proposal vote. You can borrow that as well.

07:08
and make it all happen and the interest on these loans aren’t too high either. So it’s quite a nice mechanism that they’ve all put in place to make this all happen. You also have the health factor ratings there as well. So I’m limited to the amount of ADA I have my wallet here so I can’t borrow that much IAG. So let’s lower this down. There we go. So we can have a nice health factor rating here so we know how much we can actually borrow. So the higher the health factor the better. So here you can see where you can create your own pool.

07:38
token you want so let’s say it’s milk tokens here you can choose a collateral in this case I’ll choose ADA as a collateral the initial deposit maybe it’s just to milk because that’s all I have and then I can choose the stake pool that this ADA is going to be delegated to so I can grab a pool ID from pool tool.io such as that one there and then in here paste that in and then there we go so now this brand new pool here that I’m creating

08:05
will have initial supply of two milk ADA, collateral of ADA, and then have it all delegated to this state pool here by state pool ADA odds. So love this. Absolutely love what they’ve put together here. So here I’m going to go through the process of depositing some IAG to the platform in this existing pool so that we have a minimum deposit of 178. So I’ll put in 200 IAG tokens. You can see it’s worth around just under 60 ADA. So here I’ll click on Deposit. Everything looks good.

08:34
Let’s confirm that and I just have to sign my transaction and there we go. So now that is successfully submitted and now I have provided some IG tokens to the IG ADA pool for anyone else to borrow within the ecosystem. Now that I’ve deposited some assets into the platform, I can see on the dashboard here, all of the assets that I have. And here’s my IG tokens that I’ve just put in.

08:57
I can manage my deposit here, I can withdraw and I can also see some pool information around my deposit as well. If I had any loans out, I’ll be able to see them here and I can also see all of my transactions that I have within the platform as well. So a nice way to visually see and manage everything that I do on the platform. Now if you have been using the old platform, you can still get to it. The links up there are P2P markets. So this is the older peer to peer market borrowing and lending marketplace.

09:26
You can see everything here still, there’s still a lot of loans on the platform as well. So if you’re used to this, if you have been using it, it is still there, you can still use it. But as you can see, the brand new version is a stark difference compared to the old with a much simpler UI UX experience for borrowing and lending on Cardano. So once again, congratulations to the LendFi team for launching V2 of their protocol. I’ll be playing around with this a lot more. You’ll see a lot more tutorials, course materials.

09:55
lots of blog posts about this so that if you wanted to get into the Lenfie ecosystem and learn about borrowing and lending on Cardano, you can do so. It’s actually really easy. Just check out all the course material that I have so far on learnCardano.io. There’ll be a lot more coming up. But in the meantime, if you like this episode, if you like what Lenfie are doing in the Cardano ecosystem, make sure you give me that thumbs up, click subscribe, click on that notification.

10:21
Bell, lots more Cardano related content coming right at you and I’ll see you in the next video.

 

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