Compound Protocol Script
Compound protocol is a decentralized finance protocol that acts as a layer to create a variety of DeFi powered applications like lending & Borrowing, Real Estate Asset Tokenization, Mortgaging, Cross-border money transfer.
Under the Compound Protocol, a series autonomous interest rate determining market algorithms are running on the Ethereum blockchain. When user locks in an asset under the Compound Protocol, start earning a variable interest rate instantly. The Interest accrues on every Ethereum block, and users can withdraw their principal plus interest anytime.
What makes Compound Clone Script a great choice for starting a DeFi platform?
Compound Clone Script is built on Web3.js framework that most blockchains are built on. The Compound clone can also be integrated with other supporting blockchain protocols like ETH, Polymath, TRON, Solana etc.
The primary application of Compound Clone is for building lending & borrowing based DeFi applications with a variety of financial structures. It gives entrepreneurs to start a DeFi platform real quick without worrying about supplying & maintaining liquidity. The liquidity is already available through other external decentralized protocols.
Expand your DeFi Ecosystem with Compound ADD-ONS
Over the base layer of Compound Clone Script, the product also has the option to integrate with a variety of 40+ DeFi addons and features that are being made available to create a full-fledged ecosystem.
This ensure that any new feature or functionality is made available for you to select and integrate it within a few hours rather than developing it on your own.
Our Compound clone script helps your business stay ahead with the latest features available for your users/customers.
How does the Compound clone script work?
The DeFi Lending and Borrowing script relies heavily on the smart contract’s automated rate of interest determining algorithms to offer reasonable loan rates for borrowers and sufficiently compensate the lenders for supplying liquidity by locking in their cryptocurrency assets on the platform.
Step 1: Lenders connect their Metamask wallet or any supported wallets that have their crypto assets store.
Step 2: Once connected, the platform will display the ROI they will get for depositing their crypto asset.
Step 3: If they are satisfied, they can choose the volume and tenure they like and click on Supply liquidity.
Step 4: They receive a reward token for lending their tokens on the platform.
Step 1: Borrowers sign up for an account, and submit their KYC
Step 2: After verification, they can choose the cryptocurrency, amount they’d like to borrow and the tenure. The system automatically displays the rate of interest they’d be charged and the monthly installment they will have to pay.
Step 3: If they deposit the collateral cryptocurrency and agree to the terms and the rate of interest, they can proceed with the borrowing.
Step 4: The fund will be deposited in their bank account upon withdrawal
How does the administrator make money with the DeFi Lending and Borrowing Script?
On the DeFi lending and borrowing script as an administrator, they have 2 revenue channels
Platform Fee – Platform fee for every transaction, lending or borrowing is charged from the user.
Reward Token – The platform owner also gets certain amount of reward token from the blockchain that can be listed and traded on the exchange as well.
Locked in liquidity – The platform gets to hold the locked in liquidity over a period of time and can gain from the fluctuation in price on the network. More liquidity also attracts users who want to supply liquidity and borrow from the platform.
Features of the DeFi Lending and Borrowing Script
Creates liquidity pools for a variety of cryptocurrency pairs under the DeFi platform to supply continuous liquidity.
Enterprise grade Interest deterministic algorithm
The enterprise grade algorithm constantly determines the interest rate for borrowers and the reward+ return on investment for the lenders on the platform based on the
Inbuilt Crypto wallet for the storing cryptocurrencies from users on the platform
Inbuilt Fiat wallet for the borrowers to withdraw the funds from.
Penalty is automatically charged for the borrower if they don’t pay on time. This ensures that payments are made on time and liquidity is maintained within the protocol and lender’s investments are protected.
Auto Debit from Wallet
The borrower can set in their wallet for the platform to automatically debit the interest from the wallet. They would have to deposit the cryptocurrency before the date of auto-debit.
Multiple lending protocol
The platform can be integrated with multiple lending protocols upon customization
For every user who supplies liquidity to the protocol, a reward token is deposited in their wallet on the platform by the end of the tenure.