FAQ

Are there really no interest and no maturity on the loan?

Yes, there is no interest and no maturity on the loan.

Can I use a leverage?

Yes, you can use leverage.

Where are the collateral and loans?

The collateral and loans are sent to yield farming protocol to generate interest income.

Do you also operate interest farming? Or do you use an external yield farming protocol?

We do not directly operate yield farming protocol. However, we use an external yield farming protocol.

What is a position token? What is the token issued by combining the collateral and the loan?

The token is issued by combining the collateral and the loan is a position token. A position token is a token that can take positions such as long and short. So, regardless of market conditions, you can make a profit according to the position of the position tokens.

Can borrowers profit in a down market?

Yes, you can make a profit even in a down market if you short the position of the position tokens.

What investment strategy do you recommend using this protocol for investors?

To the borrower, it is recommended for investors with an investment strategy from a mid- to long-term perspective. Our 'FREE Loan' service has no interest and no maturity, so there is less psychological and financial stress about repaying the loan borrowed through the 'FREE Loan'. In addition, 'FREE Loan' can be leveraged. So, if the borrower predicts that a coin will rise or fall in the mid- to long-term, use the free loan to create leverage and invest in the mid- to long-term while enduring the short-term fluctuation of the coin. Then, if the borrower's prediction is correct, a greater return can be obtained than if the borrower's investment alone was invested. In addition, our 'FREE Loan' is positionable, so you can make a profit through a short position even in a down market. For example, if the price of Bitcoin is currently $50,000, borrowers who predict that it will break through $100,000 in the next few months can use 'Free Loan' to get 3x leverage and invest in the price of Bitcoin. So, investors can hold their positions for several months without any interest burden, without the psychological and financial stress caused by the funding fee or interest paid three times a day in perpetual trading of cryptocurrency futures on Binance or dydx exchanges. After all, after a few months, if Bitcoin crosses $100,000, as expected, the return will be three times greater than if the borrower's investment alone had been invested.

To the lender, the 'FREE Loan' service is recommended for lenders who want to earn more yield and interest income stably by using more investment than their own. The lender takes not only his own investment money but also the borrower's collateral with interest from yield farming. Therefore, the lender can obtain a stable return higher than the interest income from yield farming or lending by investing only the lender's own investment. For example, a lender who lends $2,000 to a borrower with $1,000 earns more yield farming interest income on the total investment of $3,000, including not only his $2,000 investment, but also the borrower's $1,000 investment.

Your 'FREE Loan' is similar to perpetual trading of cryptocurrency futures such as Binance, Bybit and dydx exchanges. What's the difference?

The biggest difference is the interest rate. we do not receive interest on loans and position tokens, and there is no maturity, so there is no stress of paying the funding fee or interest, which has the advantage of being able to take positions without liquidation for a long time. However, Being able to hold positions such as long and short in cryptocurrency trading and use of leverage is what we are similar to with exchanges such as Binance, Bybit and dydx. Cryptocurrency futures perpetual trading on exchanges receives funding fees or interest three times a day, so investors feel psychological and financial stress about it and cannot hold positions for a long time, so investors have to liquidate their positions sooner or later.

How do you manage risk when the market crashes?

Wevest protocol has a VARiM which track market volatility and mitigate potential market risk. VARiM is a forward-looking risk management, so if volatility of market is being increased, it will rebalance liquidity in pools and do incremental liquidation before market crash

In what cases is it liquidated?

There are 2 possible situations, 1) collateral ratio is under certain threshold such as 1.1, 2) market volatility enters abnormal state.

How are assets that can be borrowed determined?

Market Capital, Trading Volume, Volatility and fundamental value will be key factors for asset selection.

What is the advantages and uses of the wevest LP token?

What is the use of the wevest token?

It is a proof of ownership of borrower's loan. To redeem borrower's collateral and settlement, borrower is supposed to use the token.

After the borrower issues and redeems the token, will the wevest token remain with the borrower?

No, it will be burned.

Can only USDT be used as collateral? Or can I use multiple crytocurrenies as collateral?

Currently, you can participate only with stable coins such as USDT and USDC as collateral. So, if you deposit a non-stable coin and then borrow a loan to issue a position token, the coin is automatically swapped to a stable coin and then a position token is issued.

Can I participate in the liquidity provider pool with multiple cryptocurrencies?

Currently, you can only participate in the LP pool with stable coins such as USDT and USDC. So, if you join the LP pool after depositing a non-stable coin, the coin is automatically swapped into a stable coin, and then liquidity is supplied to the LP pool.

After the Borrower liquidates the position token and the lender removes liquidity from the LP pool, does the investment enter the investor's wallet in USDT?

Yes. Even if the borrower or lender deposit with a non-stable coin when depositing, both will be returned in USDT after liquidation of the position token or after liquidity is removed from the LP pool.

Are there any hidden fees?

We charges transaction fee, such as minting, redeeming. That is all.

What is an Emergency kill button?

The emergency kill button liquidates all position tokens at once. For example, if you have several position tokens and the market suddenly crashes, you can immediately liquidate all of your tokens through the emergency kill button.

Does your protocol run on the Ethereum platform? What platform do you run on?

It currently works on Ethereum, but may be migrated to other platforms in the future.

Are you using your own oracle? Or are you using an oracle of an external protocol?

For price information, we will use external oracle protocol, but market risk related information will be done through our own oracle because there is no protocol providing such information.