After 15 days of initial yield-farming stage, Cheese Bank deeply appreciate the enthusiasm of the community and the attention, recognition of all parties.
Up to now, the maximum TVL on Cheese Bank contract has reached 13 million US dollars.
With your support and expectations, Cheese Bank will continue to deeply implement the DeFi concept of “decentralization and autonomy”, and keep on building an innovative lending platform for investors with higher asset utilization, more freedom and further decentralization — On October 15, 2020, Cheese Bank Lending Protocol 2.0 version was officially launched.
1.Launch the lending service
The Cheese Lending Protocol 2.0 version will officially launch the lending service. Users can select supply or borrow services on Cheese Bank’s lending platform. Cheese Bank will wholeheartedly provide you supply/borrow APY that are superior to other lending platforms. At present, users can supply: ETH, USDT, USDC, DAI and their corresponding UniSwap liquidity pool tokens, as well as Cheese UniSwap liquidity pool token; users can borrow: ETH, USDT, USDC, DAI.
*Please pay attention that a same account should not both supply and borrow the same currency.
*The listing of more currencies will be determined by the community after the community governance is improved.
2. Launch the innovative liquidity pool (LP) token as collateral mechanism
Cheese Bank observed two existing limitations of the current DeFi lending platform during the initial construction and research phases:
Firstly, Over-collateralization requires a large amount of funds to be deposited, which is not conducive to the circulation of assets.
Secondly, only mainstream currency types of “pledges and loans” are supported at present, such highly mobile assets of currency types can cash in at any time. Therefore, pledging and loaning with such assets in fact lower user’s own liquidity.
The better solution is to allow users to pledge and loan with LP tokens, similar to the model of pledging with stocks and real estates: assets, rights and interests are still theirs, but there is new liquidity gained, enabling them to further invest in other assets, and redeem assets simply by paying interest. This is a real model that improves liquidity.
Cheese bank launch the innovative liquidity pool (LP) token as collateral mechanism. Users can use other DEX’s Liquidity Pool Tokens as collateral for borrowing on Cheese Bank (currently only support UniSwap) . This will not only enrich mortgage mode to make the whole market get better liquidity, and give full play to the value of assets.
*Users should be careful about the borrow limited, which may subject the asset to being seized in liquidation.
*Interest Rate will fluctuate according to the market change.
3. Launch the second stage of yield-farming
In order to construct the platform initially and attract more community members, Cheese Bank will always keeps the vision in mind of “creating a piece of cheese that everyone can move”. In addition to the inherent interest rate of the lending platform, Cheese Bank will also launch the second stage of yield-farming to reward the community members who support cheese bank.
3.1 Time：2020.10.15 — — 2021.01.23（UTC+0）100 days
In the second stage of the project, the lending service will be gradually launched, and the system will readjust the reward for the release of cheese token, 20,000 cheese tokens will be released every day. A total of 2 million tokens will be released.
3.2 Mining rules
3.2.1 Supply as Mining
(1) When you supply Tokens, the Cheese tokens are divided according to the proportion of the amount lent by currency in the total lending amount of all currencies;
(2) When you supply LP Tokens,
① Since LP token cannot be lent, “Average value of lending amount of other currencies” is used as LP token’s lending amount, the lending amount of all LP tokens is the same except cheese LP token;
② The lending amount of cheese LP token is multiplied by a coefficient X on the basis of other LP tokens; (The coefficient X is 11 at present and will be decided by the community vote in the future.)
*As a lending platform, Cheese Bank hopes to provide users with more liquidity. Therefore, the purpose of the distribution rule of Cheese tokens is to encourage users to borrow while supplying.
3.2.2 Borrow as Mining
The Cheese tokens are divided according to the lending amount of each currency. Please pay attention that only ETH, USDT, USDC and DAI are allowed to be lent.
3.3 Revenue calculation
Cheese Bank believes that the significance of DeFi platform is to serve as an advanced liquidity system, discovering people in need of liquidity and providing them with liquidity, so as to create greater value.DeFi Lending won’t stop moving, Cheese Bank hopes to break the blocks of the existing DeFi lending platform by revolutionary mechanism. At the same time, Cheese Bank will always have the faith of “Making cheese for everyone”, and looks forward to being with you on the way to build an innovative lending platform with higher asset utilization, more freedom and further decentralization.