Nov 15, 2020
An introduction to Deficliq
Deficliq is here for value-addition and to contribute to the growth of the DeFi ecosystem. It has taken upon itself to offer services to those which are underserved in the community. The year 2020 has seen tremendous growth in the DeFi space.
The Whitepaper of Deficliq first analyzes and dissects some of the events that took place pre-defi and during the defi boom and accordingly finds a niche in the DeFi market that can be addressed which is where they intend to market their products.
Why Deficliq
Deficliq aims to offer an extensive range of services that provide the best value to its target customers. Its long-term mission is to democratize the lending market because it believes that every single entity has the right to finance their passions and their dreams.
Deficliq becomes the first company on the market to offer both collateralized and uncollateralized loans implying that investors could diversify and distribute their risks over multiple layers. Lenders can now select the amount of risk they can stomach ensuring that the borrowers are not discriminated against while applying for a loan that is solely based on the back-up of collaterals.
Source: Deficliq
Deficliq practices decentralization in its truest forms believing in democratizing finance to the people. As a genuine peer-to-peer technology, it does not involve comprehensive KYC processes that might hinder users to lend and borrow, unlocking the true potential of a DeFi platform.
Deficliq will be built with the Substrate open-source platform which will allow it to build and deploy its protocol and blockchain network on Polkadot. The Shards connected to the relay chain will allow for different nodes to run the application logic making each chain its own platform.
Deficliq DAO
The DAO model ensures that the token holders are able to take part in the decision-making process. It uses the Polkadot Proof-of-Stake consensus algorithm and the users can use the unique CLIQ model for bode voting elections. The voting weight will be directly proportional to the amount of the token’s balance from each voter’s wallet. The higher the tokens staked, the higher will be the vote weight which is computed as a percentage of circulating supply, not including those tokens which are held by the company.
Loan Collateralization
This is an advantage to both lenders and borrowers offering users the chance to choose the best for their needs.
- The lender can set the amount to be lent with interest rates and set a collateral percentage of the total loan. Borrowers on the other hand can choose a lending offer or place their borrow request on Deficliq.
- Users can choose between the Deficliq engine and an advanced model giving them access to advanced features of the platform.
- Once the loan or borrow offers are accepted a smart contract gets generated but if the value of the collateral drops below a certain percentage the loan will be liquidated with penalties.
- Deficliq’s unique matching system syncs offers and the requests with users getting their personalized loans based on collateral and credit scores.
It will also offer an additional uncollateralized loan service that does not require any capital to get started, lowers barriers to entries.
Yield Farming
Yield farming is provided to all liquidity providers on the platform. It will reward them with Cliq tokens for providing liquidity to AMMs and for providing liquidity to its lending platform. The APY will differ depending on the amount of liquidity provided and the time period. It will be offered to the client in CLIQ tokens periodically.
The CLIQ token
There are different uses of the token the primary being its use as collateral for borrowing or an asset for lending. It also can be used as a staking reward to yield farmers or as gas fees for conducting transactions on the platform. At a more advanced level, the uses are governance giving holders the right in the ecosystem and also for earning. A certain percentage of the fees will be given to token holders with stakes in a non-custodial contract. Value can be traded within the system with these tokens.
Conclusion
In the case of traditional finance, the organizations look forward to offering many services but Decentralized companies, despite having technological advantages of not focusing on offering a diversified set of services to the user. Most companies do not focus on providing a single one-stop-shop for all solutions bound together. Yet Deficliq aims to level this with its multiple product offerings to the target markets that are rife for expansion in DeFi.
Reach out to us:
Website: https://deficliq.com/
Twitter: https://twitter.com/deficliq
LinkedIn: https://www.linkedin.com/company/defi-cliq
Telegram: https://t.me/deficliq
Medium: https://medium.com/@deficliq/
