LENDING AND BORROWING IN NEAR PROTOCOL

OVERVIEW:

Lending and borrowing are fundamental financial activities that allow users to access liquidity and earn interest. In the context of the NEAR Protocol, these activities are facilitated through decentralized finance (DeFi) platforms. Here’s how it works:

1. Lending:

   • Users supply their crypto assets (such as NEAR tokens) to a lending platform.
   • These assets act as collateral, and in return, lenders earn interest on their deposits.
   • The platform secures the collateral until the borrower repays the loan.

2. Borrowing:

   • Borrowers can use their deposited assets as collateral to borrow other tokens (stablecoins, native tokens, etc.).
   • The borrowed tokens can be used for trading, investment, or other purposes.
   • Borrowers must maintain sufficient collateral to avoid liquidation.

HOW TO START USING BURROW FINANCE:

1. Access Burrow:

   • Visit the [Burrow platform (https://app.ref.finance/burrow) and connect your wallet.

2. Supply Assets:

   • Choose an asset from the list (e.g., stNear, stEth, etc.).
   • Click “Supply” and decide how much to lock as collateral.

3. Borrow:

   • After supplying assets, click “Borrow.”
   • Borrow stablecoins (USDT, DAI, USDC) against your collateral.

4. Repay:

   • When you’re ready, click “Repay” to settle your loan.

5. Withdraw:

   • Select the token you wish to withdraw and click “Withdraw.”

6. Adjust Collateral:

   • Use the “Adjust” button to manage your collateral.

Supported Assets on Burrow:

• DAI
• USDT
• USDC
• NEAR (wrapped)
• ETH (wrapped)
• stNEAR
• stSOL (coming soon)
• bLUNA (coming soon)

Core Features:

• Built on the NEAR blockchain, leveraging Nightshade and the Rainbow Bridge.
• Non-custodial approach for handling assets. Burrow Finance offers a unique way to participate in DeFi on NEAR, combining security, yield, and interoperability. 🚀

Read More: NEAR: Defi Reimagined: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://near.org/defi&ved=2ahUKEwic_d_Si6iFAxV2WUEAHV9eBocQFnoECCoQAQ&usg=AOvVaw3028_9W0hwedsoP-VNL7ds How Borrowing and Lending Works in Defi: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.futurelearn.com/info/courses/defi-exploring-decentralised-finance-with-blockchain-technologies/0/steps/256208&ved=2ahUKEwic_d_Si6iFAxV2WUEAHV9eBocQFnoECCgQAQ&usg=AOvVaw31FzDqVbff56tbfbeKat7O

Defi on NEAR Protocol: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://learnnear.club/defi-on-near-protocol/&ved=2ahUKEwic_d_Si6iFAxV2WUEAHV9eBocQFnoECCUQAQ&usg=AOvVaw3WDOEWU6KC2kwhaKL9bk1i

BURROW FINANCE: A NEAR-NATIVE INTEREST RATE MARKET

• Unique Value Proposition:

  • Burrow is one of the first-ever money markets on the NEAR blockchain.
  • It differentiates itself by allowing users to use interest-bearing assets as collateral.
  • These assets accrue interest (yield) and form the foundation of Burrow’s value proposition.

• Interest-Bearing Assets:

  • Burrow leverages interest-bearing assets from base layers (e.g., stNear, stEth, wNear).
  • These assets yield rewards directly from the base layer chains (highest returns and low risk).

• Self-Paying Loans:

  • Burrow enables self-paying loans.
  • Borrowers can repay their loans using yields from their supplied interest-bearing assets.
  • Essentially, you borrow against your future yield.

• Interoperability:

  • Burrow seamlessly interacts with other Layer-1 chains via the Aurora Rainbow Bridge.
  • Users can access assets from other chains and supply them to Burrow for yields or loans.