Free Loan

Free Loan

'FREE Loan' is a flagship product of wevest protocol. Wevest protocol developed the ‘Free Loan’ DeFi integration process that combines the ‘borrower-lender-swap-yield farming protocol’ in the DeFi system into one system. So, the wevest protocol can provide borrowers with a loan with no interest and no maturity, and more than the collateral, through the ‘Free Loan’ model. Also, lenders can earn more interest income rather than earning interest income with only their own funds.

No interest, no maturity, and leverage available

'FREE Loan' is a model that proposes a new paradigm in which borrowers can borrow interest-free loans by changing the old paradigm that is taken for granted that borrowers pay interest on loans. There is no maturity on the loan, and the borrower can even borrow more than the collateral. Then, how does ‘Free Loan’ make it possible to do this, in which the borrower does not pay interest on the loan, instead of the old paradigm in which the borrower pays interest on the loan?

Integration between 'position swap and yield farming'

The 'FREE Loan' developed by wevest is an innovative model that integrates the 'position swap-yield farming' that is separated from the existing DeFi into one. In the existing DeFi, the position swap and yield farming protocol are separated. However, the 'FREE Loan' connects the separate position swap and yield farming and integrates them into one. So, ‘FREE Loan’ is a DeFi integration process that integrates ‘borrower-lender-position swap-yield farming’ that are separated into one. As a result, the borrower does not have to pay interest on the loan to the lender, and the lender can earn more interest income than the interest income received from the loan of the existing paradigm without receiving interest on the loan from the borrower.

More interest income for the lender

The key to 'FREE Loan' is that 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. Through a ‘Free Loan’, borrowers can borrow loans (loans with no interest and no maturities) that are more than their collateral and can take the remaining settlement after deducting fees through a long-short position swap regardless of market conditions. In return for providing liquidity, the lender stably receives liquidity provision fees and yield farming interest income. The collateral and loans exchanged with the generated tokens of borrowers are sent to the yield farming protocol together to generate interest. The lender does not receive interest on the loan from the borrower. But instead, since the lender's liquidity and the borrower's collateral go into yield farming together, the lender earns more interest than the interest earned through yield farming or loans using only his own funds. Also, borrowers receive wevest tokens as proof and lenders receive wevest LP tokens as incentive of their participation in the entire process

What are the characteristics of 'FREE Loan' service?

⦁ No interest and No maturity date on the loan ;

The borrower does not pay interest on the loan, and there is no maturity of the loan.

However, borrowers only need to pay a fee when issuing and swapping tokens.

⦁ Leverage available ;

Borrowers can borrow more than their collateral.

⦁ More interest income for lenders ;

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.

⦁ Settlement obtained through long-short position swap for borrowers ;

Borrowers can take the remaining settlement after deducting fees

through a long-short position swap regardless of whether the market is bullish or bearish.

⦁ Distribution of wevest LP tokens as Incentives ;

Borrowers receive wevest LP tokens as incentives of token issuance,

and lenders receive wevest LP tokens as incentives for providing liquidity.

'FREE Loan' VS 'Perpetual trading of crytocurrency futures' on exchanges

	FREE Loan	Perpetual trading of crytocurrency futures
Interest payment	X	O (3 times a day)
Position	O	O
Lender’ income	O	X