A new decentralized finance (DeFi) lending platform launched on the mainnet today, with its backers hoping that a focus on long-lived assets and unique features can help it carve out a niche. market share.
On Monday, Euler Finance announced the launch of its mainnet after 15 months of development. The platform allows permissionless lending and leverage and, according to a demo shown at CoinDesk, has a number of features that can help it stand out in a competitive lending space.
The key feature of Euler is that users can borrow multiple assets at once while posting multiple forms of collateral at the same time, which will streamline loan management for power users.
Additionally, listing new markets on Euler is permissionless, which means that with the existence of a Uniswap market, users can create markets to borrow and lend long-tail assets and niche tokens. . In order to mitigate the risks associated with these often volatile assets, they can only be borrowed as a single asset and not as a collection of assets.
The platform liquidations are an open system that uses a reverse Dutch auction market that slowly increases the collateral liquidation percentage, as opposed to the major markets that tend to have a fixed liquidation rate, which hypothetically makes liquidations that are less costly for users. The platform also has a built-in stabilization feature that takes part of the liquidated collateral and adds it to the platform’s underlying reserve.
Euler’s closest competitors currently in the market may be Sushi’s Kashi permissionless lending platform and Rari’s Fuse pools, both of which allow users to create their own money markets.
In the shadow of giants like Compound, it can often be difficult for new projects to gain momentum. In an interview with CoinDesk, Euler founder Michael Bentley said the platform hopes to attract users with its accessibility to a wide range of assets.
“In terms of the market share that we’re trying to carve out, we’re giving a home to retail users where they can come in and potentially deposit a whole basket of assets and hope they’ve gotten a return on those assets, and on the business side, being able to access a wider range of assets for arbitrage and trading,” he said.
The project does not expect to see explosive growth from the start, and indeed Bently told CoinDesk that the 10-person team would prefer a slow and steady approach.
“From our perspective, we’re really focused on risk management – I don’t want to target a total number of locked values that we can market to people,” he said.
Euler will also launch a liquidity mining program that will distribute governance tokens to lenders and borrowers in Q1 2022. Bentley clarified that there will be no retroactive airdrop for early adopters because they are too easy to exploit.