Summary
TLDR: Nolus Protocol introduces the DeFi Lease, a new concept in decentralized finance that allows users to deposit cryptocurrency and receive up to 150% financing on their initial investment. This reduces over-collateralization requirements, employs partial liquidations, locks interest rates, and allows users to earn real yield from leases. Nolus aims to provide controlled returns for lenders and offers an annual percentage yield ranging from 8 to 12% on stablecoins, with additional rewards in their native token, NLS.
Key Points
1. The Nolus DeFi Lease applies the model of leasing from traditional finance to the world of decentralized finance, allowing users to deposit cryptocurrency into the Nolus Protocol and receive up to 150% financing on the initial investment.
2. Nolus addresses inefficiencies in conventional crypto lending by offering financing up to 150% on the initial investment, reducing the level of collateralization by a factor of 3. It also employs partial liquidations to mitigate risks associated with traditional liquidation methods in DeFi lending.
3. Users of the Nolus DeFi Lease can increase their exposure to desired crypto assets by depositing a cryptocurrency into Nolus, borrowing up to 150% of the initial down payment, and repaying the loan using the assets within the DeFi Lease itself. The protocol operates on a cash-basis model, rewarding lenders with real yield from leases and offering an annual percentage yield (APY) on stablecoins ranging from 8 to 12%.