Decentralized Lending Marketplace: The Ultimate Vision Of Trava
From the beginning, Trava has set the goal of creating a Decentralized Lending Marketplace. Each of the crucial milestones leads to the ultimate vision of Trava, a Decentralized Lending Marketplace where users can create and manage their own pools to build their own lending business. For a better understanding of this long-term goal, this writing will provide an overview of the Decentralized Lending Marketplace.
What is a Decentralized Lending Marketplace?
A Decentralized Lending Marketplace is considered the final long-term goal of the Trava ecosystem. In this goal, users will be able to create and manage lending pools with their own parameters, which are based on certain requirements of Trava, to have their own lending business. With the support of the Users-owned Pool feature and the Trava Lending Pool, Trava is step by step achieving the goal of building a totally Decentralized Lending Marketplace, where the benefits of users are being put above all.
In the Trava ecosystem, the Decentralized Lending Marketplace involves two main lending services of Trava, including Trava Lending Pool and Pool Creation, and several supporting features, such as Trava Knight NFT to support the NFT-collateralization in the Lending Services, Trava Governance to enhance the decentralization aspect, etc.
Key Components of Trava Decentralized Lending Marketplace
Trava Lending Pool
With the mission to create a ground-breaking lending protocol and give a great opportunity to all users, Trava Lending Pool, which allows users to deposit, and borrow assets in Trava’s Pool to make profits, is one of the most crucial services of Trava. By participating in this pool, which now supports above 15 assets, users can now get enormous earnings in an effortless manner.
Key Functionalities of Trava Lending Pool
- Deposit: Users can deposit their assets to Trava Pool to earn rewards with high APY and APR, which depend on the deposit/borrowing demand in the pool.
- Borrow: When users want to use a type of asset to do business without selling their holding assets, they can deposit these available assets as collateral to borrow favorable assets. In this way, they can still do business on any assets they want without losing their holding assets.
- Withdraw: After depositing, users can withdraw their cryptocurrencies anytime they want. However, as the deposit’s interest accrues over time, so the longer the deposit period, the bigger the interest they will earn.
- Repay: When borrowing, users can pay back all or part of their loans. Users should adequately manage their repaying to avoid being liquidated collateral.
Trava User-Owned Pools
The current lending projects overlook the potential of more than 1200 less-dominant tokens and miss the opportunity to make profits from them. Trava saw the problems that might hold the bullish growth of Lending projects and started to find the answer to it, which is to support as many assets as possible. The idea of supporting more assets led Trava to the thought that we need to support more users, which means we are product-oriented and user-oriented at the same time.
With a clear mission, the Trava Pool Creation is established. The function solves the current problems mentioned above by allowing projects and individuals to create and manage their own lending pools. As a result, they can add less-dominant assets to earn instead of solely focusing on the top tokens.
As mentioned, besides Trava Lending Pool, Trava user-owned pools will be the key players in the Trava Decentralized Lending Marketplace.
The roles in Trava Lending Services
Pool owners
Users may easily and quickly start their own lending businesses as pool owners. In more specific terms, they might construct lending pools with digital assets of varying risk levels, which are now only available in the TRAVA Ecosystem.
Lenders
Lenders play the role of liquidity providers in lending pools in the Trava system. They can not only add their major tokens into pools, but they also lend digital assets such as NFTs, etc., since Trava allows multiple assets for lending and borrowing.
With a variety of pools created in the Trava lending system, there are many options for liquidity providers to lend tokens in many different lending pools. Thus, they have more opportunities to optimize their earnings through interest rates paid by borrowers and rewards from the liquidity mining program by Trava.
Borrowers
Besides pool owners and lenders, borrowers play significant roles in a lending pool in the TRAVA lending ecosystem. Borrowers have more options to borrow digital assets with different interest rates, liquidity mining, and levels of risk.
In addition, various types of assets are used as collateral. In the near future, TRAVA Knight NFT is also expected to become one of these assets to give our users more opportunities to borrow more tokens.
To support all roles in the Lending Services, Trava offers users unique features such as BRicher, parameter recommendation, credit score, cross-chain lending, etc. As “assistance,” these features will help users to come up with the best investing decision. For example, the data analytics services based on knowledge graphs will show pool owners crucial information about lenders, borrowers, assets, and other factors that will aid them in developing a reasonable plan for their pools.
Trava Milestones towards the Decentralized Lending Marketplace
NFT-collateralization
NFTs-collateralization is considered as one of our USPs. As a result, Trava Finance is making progress toward its goal of allowing NFTs to be used as collateral and improving the lending protocol. The auction mechanism was created to price our NFTs and then prepare to integrate NFTs into our lending pool, which acts as collateral for loans. Trava NFT Marketplace was the first step on our path to enable NFT-collateralization function and bring huge benefits to our lenders and borrowers.
The launch of Trava Knight NFT also helps us to increase TRAVA utility in our system, as all the trading on our Marketplace will be in $TRAVA. Thus, $TRAVA holders will receive a lot of benefits gained from the launch of Trava Knight NFT.
Trava Governance
With Trava Governance, we provide our users with decision-making power. By doing so, we gather the crowd’s wisdom and give users a chance to speak up and have the authority for the whole community’s benefit. We believe community is the key to creating real value for our project.
In addition to decision-making on our operational and benefit-sharing plan, Trava Governance is determined to be a perfect stepstone for those who desire to be pool owners in our lending protocol in the future, as it is a useful process for pool owners to evaluate their decisions for running our lending pool. Thus, this improves their decision-making capacity and helps them make better decisions for their own lending pool in the future when the pool creation function is activated.
About Trava Finance
Trava Finance is the world’s first decentralized marketplace for cross-chain lending. While existing approaches provide only one or a few lending pools with their own parameters, such as borrow/supply interest rate, liquidation threshold, Loan-to-Value ratio, or a limited list of exchangeable cryptocurrencies, TRAVA offers a flexible mechanism in which users can create and manage their own lending pools to start a lending business. Trava is deployed on the Binance Smart Chain and allows for lending with BSC tokens first; we then enable cross-chain lending with various tokens on Ethereum and other blockchain networks.
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