How it works

Lenders maximize interest income through yield farming, including their own funds as well as borrowers' collateral, rather than earning interest income with only their own funds, and borrowers can borrow more than the collateral, with no interest and no maturities. The borrower issues a position token with the sum of the collateral and the loan, and has the remaining settlement amount after deducting the fee for issuance and redemption of the token through the redemption of the position token in the future.

Figure 8 : wevest protocol scheme

LP Pool

a pool where liquidity providers provide liquidity. In this pool, the liquidity supplied by the Liquidity provider is used to lend liquidity to the leverage pool.

Leverage Pool

borrowers use their collateral to create leverage and lend the liquidity supplied to the LP Pool.

Token Market

a place where borrowers combine collateral and loans to swap position tokens.

Yield Farming

a place that generates interest income through deposits and loans.

In Use Right Delegation, the borrower does not pay interest on the loan, but the borrower does not have the right to use the loan. The borrower's collateral and loans are sent to the yield farming protocol to generate more interest income. So, the lender earns more than the interest on his loan alone.