Highlights of $AMP Addition AMA for Lending/Borrowing on Yield Credit

Highlights of $AMP Addition AMA for Lending/Borrowing on Yield Credit


On May 8th, 2021, $AMP hosted an AMA with Yield Credit to discuss the upcoming integration of $AMP as collateral onto the Yield Credit lending platform. 

The Yield Credit team showed up with their lead developer, Coiner_, making a special appearance for the AMA itself. 

If you don’t know, Yield Credit is an individualized loan creation platform that allows users to put up a plethora of ERC-20 tokens as collateral to take loans out against. In their short time running, they have already managed to facilitate over $700k worth of individualized loans;

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Source: YieldGang.io

The great thing about loans on Yield Credit is that the lender/borrower chooses their own terms for their loans. They can choose the interest rate and the duration of the loans - making each loan totally individualized.

Unlike traditional pool-based lending platforms, lenders can be sure to know that the interest they see on the loan is exactly what they will receive when the repayment term is due. This is because the interest rates on Yield Credit is fixed once the terms have been set.  

In addition to this, borrowers are also incentivized through $YLD tokens and will earn them once they repay the loan on time. If a borrower happens to default, the lender has the right to seize the collateral - similar to traditional pool-based lending you see today. 

Notable Questions & Answers In The AMA

The AMA kicked off with a quick introduction to the project. The project lead, Coiner_, made a point about “fixed rates” which is important to consider;

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An important question cropped up regarding why somebody would want to borrow at a fixed rate of 12.5% when other lending platforms offer lower APR. Again, this was answered brilliantly by Coiner_ himself;

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Next, came questions on the tokenomics of the $YLD token itself. Firstly, Shai had the following to say about tokenomis;

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And Coiner_ chimed in with a better understanding of why they chose that route. A very interesting response that sheds light on why Yield Credit has no team funds and why the protocol still chargest fees;

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Moving forward, an important question came forward about the governance of the protocol itself, again fully cleared up in the response from the team;

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Conclusion

In conclusion, the AMA went brilliantly and the Yield Credit team helped to clear up a host of questions that had previously been unanswered elsewhere (unless you are keeping up-to-date in their active Telegram group).

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Mr Paperclip
Mr Paperclip

NOT an official YLD team account. Just a $YLD Freak. DYOR. "It looks like you’re taking out a crypto loan - would you like help?"


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