Hey All,
Today, while accessing my crypto assets on the Osmosis App, I saw this notification of - LEND AND BORROW MONEY ON THE OSMOSIS BLOCKCHAIN has finally arrived. We have a new App named as the THE RED BANK that allows users to lend and borrow money leveraging the Osmosis Blockchain. The Red Bank App is using the MARS Protocol, which is being referred to the money market of the Osmosis blockchain
The Markets - Deposit Assets
I tried using the App and as a first set you need to deposit assets. And it looks like at the moment - The deposit cap for OSMO has already been reached; with 2.50 Mil. worth of assets already deposited giving an APY of 194+% at the moment. Since, the cap already reached for the Osmosis tokens, you will need to find other tokens which the App supports and deposit those assets before you could collateralize your assets to borrow some other assets from the Red Bank App. Exploring a bit further it looks like all the three assets which you currently can deposit have reached their Max limit as seen from the above image. Even $ATOM and $axlUSDC have reached the max limit of deposits. So, I guess we need to wait a while for the limits to be increased.
The core feature of each Red Bank is the facilitation of peer-to-peer 'overcollateralized' token borrowing/lending among users on the relevant Outpost.
I have some exposure to collateralized lending with crypto but on other Apps and blockchains which was not associated to Osmosis. So far my experience with collateralized lending has been great and I did make some money as well; as I was cautious to keep my LTV [loan-to-value ratio] on the lower side. LTV in general determines the maximum amount of a secured loan based on the market value of the asset that are pledged as collateral. So always keep an eye on LTV value while Collateralizing your Crypto assets.
Overall, Its a good move to bring in THE RED BANK that allows users on Osmosis to lend and borrow money leveraging the Osmosis Blockchain, without having to go find any other platform. And the best part is that users of Osmosis remains on the same Blockchain for their needs to - Lend & Borrow Money on Osmosis Blockchain...
#red #redbank #lend #borrow #defi #osmosis #osmo
The RED BANK App - Lend & Borrow Money on Osmosis Blockchain...
Best Regards
Image Credits:: mars.osmosis.zone