Lending Pool & Lending Pool Configurator
One of the most common services offered by the financial industry is lending and borrowing. This is made possible by the concept of secured lending.
Entrepreneurs can borrow the capital they need to start a business by collateralizing the business.
On the other hand, accumulated wealth can be lent out and become capital for creditors. This system reduces the risk that borrowers will flee with borrowed funds. However, this system requires some form of trust and mediation. Banks assume the intermediary role and trust is maintained through a complex lending system in which the borrower must demonstrate the ability to repay in order to obtain a loan. And this is just one of the points in a long list of requirements imposed by banks.
In the DeFi world, there are no such barriers and banks are no longer needed. With enough collateral, anyone can have access to capital and do whatever they want. Unlike applying for a loan from a bank, which has strict Know Your Customer (KYC) and Anti-Money Laundering (AML) rules, DeFi simply provides collateral to obtain a loan.
Kapex Lending Pool is an open source money market protocol where anyone can freely offer loans or borrow cryptocurrencies. Kapex is not like other famous lending protocols. We have developed absolutely new system of borrowing with the lowest borrow APY and the highest supply APY.
Kapex Lending Pool built on the Ethereum blockchain. Liquidity providers provide assets to a pool and receive interest, and borrowers receive loans from this pool and pay interest on their debts. Essentially, Kapex bridges the gap between lenders who want interest on free funds and borrowers who want to borrow for production or investment purposes.
Why borrow APY is low but supply APY is high?
Kapex Lending Pool reduces lending/borrowing friction by allowing lenders/borrowers to interact directly with the interest rate protocol without having to agree on lending terms (e.g. maturity, counterparty, collateral) thereby creating more efficient money market.
Kapex calculates interest rates for each asset using algorithms that take into account the current supply and demand of the asset.
To earn interest you will need to provide assets to the protocol. Once you have deposited your asset with Kapex, you will immediately start earning interest on the assets invested. Interest is charged on the amount you provided and the interest rate is calculated the same way as in other lending protocols — after each Ethereum block.
After making a deposit, you will receive the corresponding number of KPX tokens. If you provide USDt, you will receive KPX(USDt), if you provide ETH, you will receive KPX(ETH), etc. Interest can be paid to you instantly or credited to your Tokens, which you can redeem by exchanging them for the corresponding asset and interest that you have.
At Kapex we have developed a completely innovative interest payment mechanism.
Kapex Lending Pool is driven by an AI core that we call KLPC or Kapex Lending Pool Configurator.
KLPC manages two liquidity pools:
- The first pool (Internal pool) is classic and is required to accrue interest on the internal KPX token (Btw, Compound works in a similar way). The liquidity pool consists solely of funds from borrowers and lenders.
- The second pool (External Pool) charges instant interest directly to your ERC20 address. The liquidity pool consists of funds received by the Kapex platform during prefarming and lenders’ funds.
Kapex Pool provides borrowers with 25% better interest rate than Compound and 10% better than Common Pool. Thanks to Kapex’s flexible and well-coordinated commission system, our lenders can expect higher rates of return than their competitors.
Kapex Lending Pool Configurator analyzes major lending platforms such as Compound and provides favorable conditions both in terms of commissions and payments to lenders and borrowers. Thanks to our AI system, the lender can receive an average of 15% more than the competition.
We will tell you more about External Pool in a separate article.
On the Kapex Lending Pool platform from the very beginning you can borrow or use 12 tokens as collateral: BAT, DAI, ETH, REP, USDC, wBTC, ZRX, YFI, USDt, UNI, LINK, AAVE.
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