Yield.Credit is a DeFi lending app with fixed, guaranteed interest rates for lenders. It was launched in mid-December 2020, by an anonymous developer known as Coiner.

It can achieve fixed and guaranteed interest rates on the platform as both lending and borrowing are individualized - not pooled such as with Aave and Compound Finance.

The concept was born due to the lack of incentivization for borrowers in typical DeFi lending platforms. Traditionally, there are many lenders but not so many borrowers. As a result, Yield.Credit created a system that will incentivize borrowers for taking on market inefficiencies.

Borrowers that maintain healthy loans and repay them on time earn the YLD token. This provides a scenario in which borrowers are rewarded for being good borrowers and are paid for their work. To combat against hyperinflation, there is a limit on the amount of YLD that a borrower can generate. This will deter whales from simply flooding the protocol with large loans to earn absurd amounts of YLD when the loan is repaid. This limit is currently set at 350 YLD.

Like most protocols, lenders and borrowers must pay fees to interact with the platform. However, 100% of the fees generated are used to buyback YLD on the market. The yield purchased is then burnt through a smart contract. This creates a consistent buying cycle for YLD as well as reducing the token supply - making it more valuable in the long-term.

Additionally, Yield.Credit has a liquidity mining program called The Garden. It is based on the Ampleforth Geyser liquidity staking contract. Interestingly, in the early days of Yield, AMPL also seems to be their primary lending principle token.

The YLD token itself cuts 25% off of the fees paid by lenders and borrowers if they are held in the wallet. It also reduces collateral liquidation ratios and increases the YLD per loan borrowers can claim.

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