July 15 witnessed a major milestone for the growing ETHA Lend community worldwide. Following months of hard work and amid rising anticipation, the project finally launched its Mainnet on the Polygon network yesterday.
For those out of the loop, ETHA Lend pitches itself as a protocol-agnostic DeFi yield optimizer built on the ETH blockchain. It’s an ambitious project that aims to remove all roadblocks limiting DeFi’s accessibility and appeal to the broader crypto community.
The Mainnet launch was, of course, a crucial step in that direction and so far appears to have lived up to the community’s expectations. At this juncture, our early assessments do not differ much from the positive community feedback. Indeed, the Mainnet launch seems to have brought along just the right blend of features that you would expect from a project this big and ambitious.
Over the next couple of days, BeInCrypto will be taking a deep dive into everything ETHA Lend has to offer. While there, we’ll also try to evaluate whether or not it has the potential to justify the hype surrounding it. But before we get to the more complicated bits, let’s start this review series with a basic overview of the project and the surrounding ecosystem.
What is ETHA Lend?
To understand what ETHA Lend is, you first need to understand the problems in DeFi it is trying to solve.
As you know, the growth of DeFi over the past two years has been nothing short of spectacular. And a big part of the enthusiasm and growth the DeFi space has witnessed can be attributed to the emergence of the practice called yield farming.
A quick overview of yield farming
Basically, yield farming is a process that lets you earn profits from your cryptocurrency stash which would be otherwise sitting idly in an exchange or a wallet. With yield farming, you, the liquidity provider, deposit a part of your crypto holding into a liquidity pool.
The liquidity pool is basically a smart contract filled with cash. It is designed to use the crypto deposited by investors like you to generate profits.
For example, the smart contract can lend to a borrower seeking funds in crypto at a mutually agreed-upon interest rate. Upon the final settlement with the borrower, the smart contract shares the profits from the transaction with liquidity providers like you.
These liquidity pools play a key role in the broader DeFi ecosystem. In most marketplaces, they are the go-to destinations for users to borrow, swap, and lend tokens. And that’s precisely what makes yield farming an attractive choice for many crypto holders.
Note that this is a very rudimentary explanation of yield farming. If you think you could use more details, BeInCrypto has an insightful yield farming explainer covering just that.
Despite all its potentials, the overall user experience in the DeFi space today leaves a lot to desire. For example, the concepts, as well as many of the strategies and practices associated with yield farming are not usually inherently intuitive. And this, in turn, ends up confusing (or even discouraging) new users.
Coming to the specifics, there are three fundamental issues that yield farmers – new and experienced alike – have to face frequently. These are – high transaction fees, the lack of interoperability, and limited risk tolerance with non-transparent market rates.
Forget about navigating the technical and financial challenges emanating from these factors, most users find it difficult to even develop a good understanding of the different projects and protocols available to them. They are simply unable to objectively assess different yield opportunities to formulate an effective yield optimization strategy. These are precisely the pain points that ETHA Lend aims to resolve.
ETHA Lend: The solution
ETHA Lend is a protocol and chain-agnostic yield optimizer powered by Polkadot and built on the ETH blockchain. It deploys an intelligent algorithm that automatically evaluates risk factors before allocating your assets across the best available protocols. It requires little input from the user when it comes to optimizing yield opportunities.
The discovery algorithm at the core of the optimizer is 700x faster than anything we ever had in the past. This enables ETHA Lend to take past and present volatility of an asset into account along with other factors such as past yields and gas costs – and all these within a fraction of a second. It then uses those analytics to automatically make smart allocation of your assets.
And the best part is that the discovery algorithm maintains this blitzkrieg speed regardless of the size of the supply, be it 1,000 USDC or 1,000,000 USDC.
Other advantages include:
- Flexibility originating from the interoperable protocol is another big edge ETHA Lend enjoys against the competition. The platform can readily upgrade its liquidity protocol to integrate and interact with new DeFi protocols. This, in turn, makes it easy to further increase yields.
- ETHA Lend also brings along a feature-rich, non-custodial atomic wallet called ETHA Smart Wallet. The wallet lets you interact with and manage your positions in a large number of DeFi protocols.
- The ETHA Lend ecosystem also includes ETHA Vaults (eVaults) to give you greater control over your assets. Among other perks, the eVaults ensure that you can easily isolate and protect your assets from high market volatility. At the same time, you can also deposit stable assets such as USDT or USDC and receive yields in volatile assets such as BTC (BTC), Ether (ETH), or ETHA, the native token in the platform.
- Unlike most rivals, ETHA Lend enables users to interact with its protocol without requiring to undergo lock-up periods. This ensures that your interests are deposited instantly in what is essentially a major upgrade to the way most people have been generating revenues from their DeFi investments.
- ETHA Lend offers a feature-rich but (relatively) simple interface that helps mitigate the complex and sometimes intimidating quirks of DeFi.
Now that you have a basic understanding of ETHA Lend, we will be covering all these features and the Mainnet launch in detail in the next couple of articles in this review series.
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