EverLend — How to Borrow on Everscale?
As the crypto industry has grown, so has the application of digital money. Many lending services have been created to allow users to borrow one cryptocurrency while leaving another as collateral, or to lend their digital funds at interest.
Experienced investors see collateral services as a profitable and convenient way to use digital money without selling their cryptocurrency.
Recently, the EverLend.app financial protocol — a detailed solution from the Svoi.dev development team — was launched on the high-speed Everscale blockchain. Customers of the EverLend platform gained the ability to borrow and lend cryptocurrency assets without intermediaries.
The lending protocol works as follows: lenders don’t provide their digital assets to borrowers directly, but transfer them to a liquidity pool, from which other EverLend.app users can subsequently borrow.
EverLend.app Review
One of the advantages of the EverLend.app service is its simple and intuitive interface.
To use the platform, users don’t need to go through any authorization procedure or KYC check — all they have to do is connect their cryptocurrency wallet to the site. The service works with EVER Wallet or Scale Wallet, which were also developed by the Svoi.dev team.
On the main page of the site, you can see information about the amount of money in the pool, as well as data on how much of it is currently borrowed by platform users.
Below is a panel with a list of available cryptocurrencies, their balances, and interest rates for deposits (Supply) and borrowings (Borrow).
Interest rates on loans and deposits are floating. They are constantly adjusted as they are calculated using algorithmic methods that take into account current supply and demand.
EverLend.app currently supports the altcoins USDT and WEVER (wrapped EVER).The platform lends USDT stablecoins against WEVER coins, and vice versa. It is easy and simple to get a loan on EverLend.app — you just need to make a deposit and click the Borrow button next to the name of the cryptocurrency you want to borrow.
Loans can be returned at any time — the most important thing is to monitor the exchange rate of the collateral asset, because if the value of the collateral falls to the amount the borrower owes back, a margin call will be triggered. This means that the deal will automatically close, and the collateral will be forcibly liquidated by the platform.
EverLend.app allows its users not only to borrow, but also to lend cryptocurrency at interest. To make a deposit and start earning passive income, click the Supply button next to the name of the asset that you want to use.
Another advantage of EverLend.app is that at any time, users can withdraw their deposited funds together with accrued interest.
LEND — the EverLend.app Governance Token
LEND is a native EverLend.app token created to decentralize protocol governance. LEND will also soon be an economic incentive for liquidity providers and lenders. The token’s total emission is 10 million, of which 550,000 have been issued for the initial offering.
Profitable Strategies on EverLend.app
Using EverLend.app, users can earn on both increases and decreases in the WEVER (the wrapped version of the EVER token) exchange rate.
Let’s say an Everlend.app client assumes that the WEVER token will soon increase in value.
In this case, to stay in the black, the holder of WEVER coins leaves them as collateral and borrows in stablecoins.
Important: due to the volatility of digital money, the price of collateral constantly changes, so the loan amount on EverLend.app is fixed in traditional money. Therefore, if the WEVER price rises during the loan period, the EverLend.app customer makes a profit when they get back their collateral.
How do you earn if you feel that the rate of the WEVER coin is about to fall then? You need to borrow it! So, let’s go short:
- We leave our ever-stable USDT as collateral on EverLend.app and borrow WEVER tokens against them, for example, in the amount of 300 WEVER
- Now we sell our borrowed WEVER at a favorable rate while the value of the coins is high. Let’s say the rate is $0.5 — this means we sold our tokens for $150
- We wait for the WEVER price to decrease. Then, when the value of the coins has dropped, we buy them at a low rate. Let’s say the exchange rate dropped to $0.3. Then we will only spend $90 in order to buy 300 WEVER
- We transfer the newly purchased WEVER to the EverLend.app service and get back our USDT collateral.
By successfully predicting a decrease in the rate of the digital assets, we were able to earn $60 ($150 — $90), and this is just an illustrative example.
EverLend.app is a safe and profitable tool for generating passive income on personal crypto savings. Thanks to its high level of transaction security, user-friendly interface, and low fees, this young and promising lending service has every chance of becoming on par with cryptocurrency lending market leaders such as Aave and Compound.
About the Everscale network
Everscale is one of the most technologically advanced blockchain networks, incorporating all of the blockchain innovations and concepts of recent years. Its versatility gives it the potential to become a decentralized hub for lots of blockchains and resource-demanding applications such as GameFi, DeFi, supply chains, etc. Due to its dynamic multithreading and sharding technology, there’s always more room to add new nodes and shards to handle any load — and that’s something that no other blockchain can offer yet.
Everscale has powerful developer tools, such as compilers for Solidity and C++, SDK and API, client libraries ported to more than 20 languages and platforms, and a range of decentralized browsers and wallets.
More About the Everscale network:
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