What Is Proton Loan (LOAN)? Complete Guide & Review About Proton Loan

What Is Proton Loan (LOAN)?

Proton Loan is a new decentralized lending market built on the Proton blockchain. Utilizing the cross-chain capabilities of Proton wrapped xTokens, Proton Loan makes it possible to deposit cryptocurrency into lending pools to earn interest, and to take collateralized loans from cryptocurrency pools. With support for BTC, ETH, USDC, DOGE, XPR and XMT, and with zero gas fees on the Proton blockchain, Proton Loan ensures DeFi lending remains accessible and affordable.

Proton Loan Coin opens up a new possibility for borrowing and lending against multiple blockchains that were not previously accessible on Ethereum or other blockchain protocols. By using a system of smart contracts powered by the Proton blockchain, users can request and fulfill loans using cryptocurrency without the need for a central mediator and without regard for the parent blockchain protocol of the requested asset.

The LOAN token will be used to vote on governance decisions for the Proton Loan platform, such as which tokens can be collateralized on the protocol to borrow and lend, as well as the interest rate curves for borrowing.

Important Points Table Of Proton Loan

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A blockchain lending protocol

Proton Loan is a DeFi lending protocol powered by the Proton blockchain.

Liquidity pools

Proton Loan Coin Lenders can add cryptocurrency directly into liquidity pools, where borrowers can withdraw a loan in just a few clicks.

Smart contracts

Proton’s pressure-proven smart contracts ensure all loans are accurately tracked in real time, always giving you accurate information.

Rewarding rates

Proton Loan Coin With competitive rates for lending crypto, and attractive rates for borrowing, Proton Loan stands out when compared to other TradFi and DeFi options.

You’re in control

Withdraw your funds directly to your wallet in seconds, using your WebAuth.com wallet to approve all transactions.

Powerful API

Designed from the ground up to be flexible and safe, Proton’s API allows applications to leverage what we’ve built in exciting ways.

Lightning fast

Proton Loan Coin Instant transactions, fast settlements, and no downtime. The Proton blockchain makes loans happen at the speed of light.

Glossary

APY: abbreviation of Annual Percentage Yield, a normalized representation of an interest rate, based on a compounding period of one year.

Deposit APY: variable rate that you can earn from depositing assets to Proton Loan. High amount of loans = high APY. Low amount of loans = low APY.

Variable borrow APY: variable rate you will pay on the borrowed amount. High utilization = high APY. Low utilization = low APY.

Borrow amount: the amount you would like to borrow.

Max borrow: Proton Loan Coin maximum amount you’re able to borrow.

Max borrow to deposits: is the maximum amount you can borrow off of deposits. If you deposit $100 BTC, you can borrow $70 worth of any asset off of it. This is also known as loan to value (LTV).

Deposit amount: is the amount you wish to deposit, it cannot exceed more than what you have available in your wallet.

Max deposit: is the maximum amount you’re able to deposit, it’s the maximum amount you have available in your wallet.

Withdraw amount: is the amount you would like to withdraw.

Max withdraw: is the maximum amount you’re able to withdraw.

Repay amount: is the amount you would like to repay.

L-Tokens

Proton Loan Coin Once you deposit a Proton wrapped X-token, for example XBTC, it becomes LBTC on Proton Loan, which represents your share in the lending pool. To simplify the experience for users, by default L-tokens are not withdrawn from the contract.

X-Tokens

When you wrap a cryptocurrency in Proton it becomes an X-token. X-tokens enjoy all of the benefits of the Proton blockchain, including:

• Instantaneous transactions
• No gas fees for end-users
• The ability to process micro-transactions
• Access to Proton Swap
• Easy integration into Proton dApps and projects

Tokenomics

Proton Loan Coin native token of the Proton Loan ecosystem is LOAN, which is used to reward both borrowers and lenders for using the platform, and govern the platform. Read more on governance here. Initial Distribution:

• XMT (MTL): Received 333 LOAN for every 1 XMT held
• Unstaked XPR: Receive 1 LOAN for every 1 XPR held
• Short Staked XPR: Receive 2 LOAN for every 1 XPR short staked
• XPR-USDC Liquidity: Receive 2 LOAN for every 1 XPR held in the XPR-USDC Proton Swap liquidity pool
• XMT-USDC Liquidity: Receive 666 LOAN for every 1 XMT held in the XMT-USDC Proton Swap liquidity pool
• 90 Day Long Stake: Receive 10 LOAN for every 1 XPR long staked for 90 days
• 365 Day Long Stake: Receive 30 LOAN for every 1 XPR long staked for 365 days