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Summary
Nolus has recently emerged as a financial services platform that offers the world’s first DeFi lease. Thanks to it, Web 3.0 users are able to interact with financial products already known in the real world, but with a protocol based on decentralized technologies.
Nolus’ product offering is centered around a “buy now, pay later” model, on an interactive and easy-to-use platform. The platform creates a simple connection between those interested in lending their assets and generating yield with others seeking to increase their equity quickly through leasing. This connection allows investors to expand their crypto portfolios even with little liquidity and also be able to profit from idle assets they currently hold.
Although the Defi Lease is the focal point of the Nolus Protocol, the platform also allows users to buy and sell their assets in a multi-service environment with staking incentives for those who simply intend to invest.
DeFi Lease
Creating the contract is intuitive and secure, and the user can be cool-headed when it comes to transparency. The contract does not hide additional payments or abusive fees and users don’t choose an end date to repay the lease, being able to pay back the interest without the loan for as long as they want (and afford). On the platform, the user can use their available equity to deposit a down payment and open a lease position.
The down payment and the loan are used to buy the asset at the current market price and lock it in a smart contract. As long as the contract lasts, the user has ownership of the asset at all times, as Nolus has no custody over it. Once the loan plus outstanding interest have been paid, the asset is released and returned to the user’s wallet. The remaining value can be reinvested or withdrawn. At Nolus, the interest rate is fixed upon contract creation, offering the borrowers much-needed predictability in terms of costs.
In addition to all the flexibility, Nolus offers the best financing rates in the market, up to 150% of the initial down payment value, and has around 40% lower liquidations rates than other market options.
Asset Management Solutions
– Manage
Nolus also allows financial services to be executed on a decentralized, censorship-resistant medium. Users can manage their funds on the same platform easily and without extensive prior knowledge. You only need to transfer funds from your crypto wallet – and, in the near future, fiat from your bank account. Built using Cosmos SDK and utilizing the Inter-Blockchain Communication (IBC) protocol, Nolus provides authenticated communication with other blockchains, performing transactions quickly and cheaply. This means you don’t have to manually switch between blockchains to make use of a certain feature not available on the network of choice. At Nolus, everything is at your fingertips.
– Earn Yield
Through the Nolus Earn feature, users who lend their stablecoins (referred to as Lenders) can earn yield. In simple terms, they receive a share of the interest paid by active lease positions and additional incentives in the form of NLS tokens. Lenders, in this case, can deposit and withdraw from and to Nolus Earn. To keep the utilization level of borrowed assets healthy, lenders get capped if the utilization of the pool drops below a certain threshold. This is done to guarantee that lenders do not get diluted in rewards should they significantly outweigh the borrowers.
– Stake
Users can also lock their NLS tokens by performing an action called staking. Staking is the process of delegating to a given validator on the Nolus chain to help better secure the network in exchange for earning NLS rewards or additional protocol-related benefits. To withdraw, the user only needs to unbond their staked assets and 21 days later, the assets would be released to the user’s wallet.
Almost the entire Nolus ecosystem is based around this staking incentive mechanism. The primary goal behind this is to both ensure better security for the network and simultaneously provide protocol-related benefits, thereby strengthening the economic model of Nolus. Nolus stakers can use the staked NLS tokens to gain perks like reduced interest rates and special down payment options required for the Lease. The greater the amount of NLS tokens at stake, the greater the perks for the user.
Lenders also benefit from NLS token staking. Depending on the amount of staked tokens, they can have boosted yields.
The staking incentivization mechanism aims to act as a growth lever following the project’s launch, attracting and retaining users, generating interest in the project, and potentially increasing the NLS market value.
Usage
Services
4.2
(Overall Rating)
