Clynto is a decentralized finance platform that allows users to use cryptocurrency and NFTs as collateral for stablecoin loans, emphasizing borrower control over loan terms and community-driven governance. Key features include custom loan terms, multi-chain support across Solana and Ethereum, flexible collateral options, and a rewards system with Nectar points for participation. The protocol also includes mechanisms for liquidation and interest rate management, ensuring a secure and user-centric lending environment.
Documentation
- Traditional financial systems rely on centralized entities to facilitate lending and borrowing activities, often leading to inefficiencies, high costs, and lack of transparency. The emergence of blockchain technology and decentralized finance (DeFi) has introduced new opportunities to create more efficient and transparent financial systems.
- This guide explains how to calculate daily interest for lenders in a borrower pool within the Clynto Protocol. Key concepts include the Annual Percentage Rate (APR), daily interest calculation, and the Loan-to-Value (LTV) ratio. Formulas for converting APR to daily rates, calculating daily interest, and updating total loan amounts are provided, along with example calculations demonstrating the process over multiple days.
- Clynto Protocol allows users to vote on key parameters affecting loan safety, including the liquidation point, which adjusts dynamically based on the minimum duration for investment liquidation. This ensures lender safety by increasing the liquidation point as the duration increases, using a specific formula. The dynamic adjustment approach promotes consistent risk management, reduces uncertainty, and aligns with the platform's risk tolerance, making the system more predictable and transparent for users.
- The governance system allows CLY token holders to participate in decision-making processes, including setting interest rates, loan-to-value (LTV) boundaries, and handling liquidation cases.