Nolus joins Cointelegraph Accelerator as a Cosmos-based DeFi lending protocol.
Crypto lending has become an important aspect of decentralized finance (DeFi), which enables individuals to lend and borrow digital assets through specifically designed protocols. With crypto lending, users can lock their crypto assets as collateral to borrow a fiat or stablecoin loan. Unlike traditional intermediaries such as banks and credit unions, DeFi lending protocols operate directly on a blockchain. Each loan or borrowing is facilitated by smart contracts, and on-chain supply and demand determine the interest rates.
According to reports, the DeFi market is expected to reach $231 billion by 2030, with lending protocols being a key element driving the growth. Lending has more than an 11% market share in the DeFi ecosystem and stands as one of the five biggest DeFi sectors, according to a CoinGecko research report. Users flock to DeFi lending protocols to avoid directly selling their crypto holdings, which they expect to increase in value.
Despite its growth potential, several factors limit the usability of crypto lending. Primarily, users need to lock up more value in crypto as collateral than what they aim to borrow. This is a common practice for both centralized and decentralized lenders to avoid risks related to the liquidation of funds due to sudden drops in collateralized tokens’ value. Platforms tend to provide financing up to 50% to 60% of any deposited collateral.
The complexity of the lending process is another deterrent for the majority of Web3 users, as DeFi lending solutions need a technical understanding that may confuse even experienced traders.
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Nolus Protocol, a Cosmos-based DeFi protocol, recently introduced DeFi Lease to address the inefficiencies in the current DeFi lending landscape. DeFi Lease provides users financing up to 150% on the initial investment, almost three times the average crypto lenders’ offer, while leaving the asset ownership with the user. It also keeps the total cost of financing and transactions lower than the market average to help Web3 users secure a larger amount of a desired digital asset than their current equity balance without worrying about technical formulas or complex lending fee structures.
Apart from DeFi Lease, Nolus operates as a non-custodial financial suite for Web3 that allows users to manage all digital assets and purchase, sell, swap, or stake their crypto. In May, Nolus successfully launched its mainnet and expects a fully working protocol live next week.
The Cointelegraph Accelerator program took off in 2023 to provide Web3 projects assistance in reaching their true potential. By joining the program, Nolus will have the opportunity to present to the broader Web3 ecosystem its innovative approach to crypto lending, attracting users from other blockchains and wallets to its Cosmos-based chain to interact with its DeFi protocol through a simple interface. As a participant in the Cointelegraph Accelerator program, Nolus aims to become the one-stop shop to park all crypto transactions for Web3 users.