As a seasoned crypto investor with a knack for spotting promising projects, I find the recent developments at Nolus particularly intriguing. Having navigated through numerous bear and bull markets, I’ve learned to appreciate the value of a platform that offers both high returns and minimal risk.
Nolus, a versatile cross-chain lending platform designed to lower risk while offering leveraged borrowing options, has unveiled plans for an asset expansion. In the near future, Nolus will offer support for volatile base currencies such as Bitcoin (BTC) and Ethereum (ETH). This new feature allows users to engage in long and short positions on these assets, as well as earn extra returns from their respective liquidity pools.
The enhancements for Nolus are coming following a recent funding phase that boosted the company’s overall capital to $3.5 million. It seems that blockchain venture capitalists are impressed by Nolus’ innovative strategy for producing DeFi returns while focusing on risk reduction and security. The platform’s total value locked (TVL) has been progressively increasing, currently surpassing $60 million and aligning with its lifetime volume.
Nolus Rings in the Changes
As a crypto investor, I’m excited about the upcoming addition of volatile base currencies like Nolus throughout the year. This expansion will offer more avenues for me to capitalize on market fluctuations. Notably, assets such as ETH will be accessible not only for lending but also for borrowing. This opens up an intriguing opportunity to swap these assets for stablecoins. When combined with Nolus’ leveraged borrowing solution, this provides a chance to establish long or short positions, amplifying potential profits or minimizing losses.
Nolus guarantees that no restrictions will be placed on volatile assets, enabling users to liquidate positions whenever they choose following loan repayment. The opportunity to earn stable annual percentage rates (APRs) between 8-15% through Nolus’ leveraged lending tactics has caught the attention of DeFi users looking to amplify their income without taking on additional risk.
Higher Earnings With Lower Risk
In simpler terms, DeFi lending platforms usually set a limit on how much you can borrow relative to your collateral’s value, often around 75%. This is done to safeguard users from losing their assets if the value of the borrowed tokens decreases. However, experts suggest that users should only borrow up to 50% of their collateral’s value for optimal safety. The downside is that this restriction makes the system less efficient with capital, as half of a user’s assets remain unused.
Nolus addresses this issue by creating a system modeled after conventional financial leasing, offering reduced capital needs. This is accomplished by merging both the collateral and the loan into a smart contract, enabling financing up to 150% of the initial deposit’s value. The income generated stems from interest-earning DeFi loans, with NLS tokens serving as an extra incentive for rewards.
Introducing flexible base currencies like Ethereum (ETH) and Bitcoin allows users to explore a variety of investment strategies. For example, if they anticipate the market will rise, they can deposit ETH, borrow stablecoins, then use these to buy more ETH. Conversely, if they expect the market to fall, they can swap the process around. This setup also serves as an efficient risk-management tool, helping users mitigate potential losses on other positions, such as options, elsewhere in the market.
In the coming months, Nolus plans to introduce its fresh base currencies and enhance its platform with further updates, aiming to expand its influence within the vast DeFi lending market, which is worth billions of dollars.
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2024-09-12 11:23