Introduction
Lending Protocols have been a core part of the DeFi space as we know it. These protocols allow users to lend and borrow crypto assets in a trustless and decentralized manner, without the need for intermediaries like banks. However, existing lending protocols face several challenges such as capital inefficiency, liquidity dependancy, and oracle dependancy.
Nexon Finance aims to eliminate all of the above challenges by building an efficient peer-to-peer (P2P) lending protocol that maximizes capital efficiency and minimizes risks associated with external liquidity and oracle dependencies.
“If you like this blog don’t forget to follow me here on medium and my Twitter @_nekowo2”
Why You Should Pay Attention
Nexon Finance has seen eye catching growth in the past week with a +175% increase in TVL.
According to their whitepaper, they have plans to release a token called “Nexon” (NXN) which will be mainly used for Governance and Revenue Sharing.
(you can read the whitepaper here)
With it’s Token Generation Event (TGE) on it’s way, although it has not yet been confirmed, there may be a possible airdrop for this project.
Why? Look at this tweet from one of it’s founders.
Now that you know why you shouldn’t overlook this project, let’s dive into what Nexon Finance is and their unique features that set them apart from other lending protocols in the crypto space.
What is Nexon Finance?
Nexon Finance is the first lending protocol deployed on zkSync Era mainnet. Nexon is designed to maximize capital efficiency while minimizing the risks associated with the dependancy of external liquidity & oracles.
Leveraging the Layer-2 ZK rollup zkSync, with it’s low gas and faster transaction while not compromising security, Nexon Finance is able to provide the best-in-class UI/UX for it’s users and help their misson of DeFi mass adoption.
Products
Nexon Finance just launched their Pooled v1 mainnet. Allowing users to finally lend & borrow real crypto assets on their platform. Right now, the only available markets on their platform is USDC and ETH. This however, is not their main product.
After this,following their roadmap, they will launch their Pooled v2 testnet & mainnet before launching P2P Lending & Borrowing to their platform.
P2P Lending & Borrowing is the key product of Nexon Finance. In traditional lending protocols, users have to interact with central pool of funds to supply & borrow assets. P2P Lending & Borrowing allows lenders & borrowers to interact with each other directly, allowing them to negotiate terms and determine the best borrowing and lending rates for their needs.
This has several benefits such as;
- Fully Utilized Funds
- Lower Interest Rates
- Decentralized & Transparent
With Nexon Finance’s upcoming P2P feature, Lenders are able to enjoy higher interest on their crypto assets while Borrowers pay lower interest on their loans. Giving users leverage on their crypto assets for a lower cost.
What To Look Out For
Nexon Finance has confirmed in their twitter account @NexonFi that they will launch their own token NXN. Although no airdrop is confirmed, it is still possible as they have mentioned of a TGE in their roadmap and has reserved 61% of their tokens for community incentives.
Yesterday, they have announced a Token Bootstrapping Event (TBE) on their twitter here and will provide more information on it next week.
I may make a guide on how to participate in their TBE when it comes, so follow me and subscribe to my emails so you won’t miss any updates!
I would strongly advise you to keep an eye on their twitter account and join their discord to keep up with updates and announcements in the future.
Summary
Nexon Finance is the first lending protocol on zkSync with a promising product. Inevitably when the zkSync narrative comes, we’ll be seeing Nexon amongst the top projects on zkSync. Being early is always a good thing in crypto, but don’t forget to always DYOR and remember that this is not financial advice!
And that’s it for my blog today. I post every Wednesday and Saturday so make sure to follow me and subscribe to get an email each time i post. Hope this blog helped you in some way and look forward to the next post!
DYOR.
