*obligatory not financial advice*
What is Yupana Finance?
Tezos is a popular proof-of-stake blockchain for smart contracts. It had plenty of DeFi dApps since 2021 but for some reason it didn't have a lending protocol until Yupana launched recently. The developers of the Yupana Finance protocol are the MadFish team, which are famous in the Tezos community for also developing the popular QuipuSwap DEX and the Temple Wallet which is the most useful wallet for Tezos applications.
Yupana Finance allows Tezos users to deposit various cryptocurrencies to either earn a variable interest rate by lending them or to use them as collateral to borrow a different supported token. So it’s basically the Tezos version of Aave or Compound.
The DeFi loans on Yupana don't require any KYC or credit score, you only need to provide a collateral with more value than your loan that you can only withdraw by paying your loan back. Such loans are useful for people that need money but don't want to sell an asset they are bullish on or for leverage trading were you use your loan to buy even tokens or to short an asset by borrowing it. You can pay the loan back whenever you want and there is no fixed maturity.
However, such loans are not risk free because should the value of your collateral fall to a certain point it will be sold to liquidators that pay off your loan for you in exchange for an instant profit since the collateral will still have slightly more value than the loan.
You can also provide tokens without borrowing anything to earn an interest rate thru lending. The APY for both lending and borrowing is set automatically based on how many tokens are being supplied vs how many are being borrowed. If more people borrow XTZ then the APY for it will increase, if more people supply XTZ then the APY for it will decrease.
So far Yupana only supports 6 different cryptocurrencies, these are XTZ, ctez, kUSD, uUSD, uBTC and tzBTC. So 2 different USD stabelcoins, 2 different versions of wrapped BTC and 2 kinds of XTZ tokens. There are for more tokens available on the Tezos blockchain, so more will likely be added in the near future.
Yupana currently doesn't have its own governance token but it will likely launch one like most dApps do. There are no details currently known about the tokenomics but there could be an airdrop for early users.
If you want to try Yupana for yourself then you can use a Temple wallet to access the protocol but you will need some XTZ for the gas fees.
-----
If you liked my post then please leave a tip, that way we both earn some money!
If you don't have an account on Publish0x then you can signing up here and start earning cryptocurrencies for reading and tipping.
Lofty, $25 start bonus to invest in Fractional Real Estate
FaucetCrypto, Earn small amounts of Cryptocurrencies for free
Learn more about the Ledger hardware wallet
Presearch, 25 PRE start bonus, earn cryptocurrency for searching the web
You can also tip me crypto directly if you want to!
ALGO: 2LPXBHC5WIAOYESBJ4JTRYEQC6PUO4HZLZBY42V4XANUKGYZT6SWRMLDH4
NANO: nano_31nwmmab1pykptytqn9tzj684f3hhhwpawxaneefwqhxtw363ytwuo6uuuhs
BANANO: ban_31nwmmab1pykptytqn9tzj684f3hhhwpawxaneefwqhxtw363ytwuo6uuuhs
XLM: GCQ6ACH3WBHI5JBYHPEZUEETLM4SAMINNCBBQVHIH2F3A7SVALXX773P
