LENDING AND BORROWING

The services provided on NCOG DeFi are vaguely divided into two : lending and borrowing. The facilitation uses a stalwart lending and borrowing protocol.

NCOG DeFi offers an algorithmically operated decentralized money market protocol that allows lenders to provide loans and borrowers to take out loans. The protocol offers a fully automated mode of lending whereby the platform automatically allocates and secures loans at an interest rate that’s determined by market forces (demand and supply). This includes the liquidity of a certain pair and other variables like market volume.

Unlike traditional lending that is mostly facilitated by centralized entities like banks and usually only made available to the elite class, the yield offered in the decentralized markets are way higher because the transactions are primarily crypto-backed loans, and everyone has equal rights.

Borrowers can use their digital assets as collateral to receive digital assets in return, and lenders can provide liquidity to the liquidity pool that sits in Smart Contracts and earn rewards for doing so.

Some DeFi protocols have addressed liquidity by allowing users to pool their liquidity. However, these liquidity pools remain distinct from lending. NCOG DeFi lending protocol will integrate liquidity pools and lending services to maximize the liquidity accessible to platform users. We don’t offer the option of users creating their pool with customized terms and rates. Platform users utilize the liquidity pool offered by the network, and lenders will be able to deposit their idle assets into the liquidity pool and earn rewards on their allocated assets.