What Is UwU Lend (UWU)?
UwU Lend is a liquidity market that offers depositing and borrowing. Users earn interest on deposits and pay interest to borrow. This provides the ability to free capital against assets users are planning to hold for utilization in other investments, leveraging, or expenses. Outstanding loans have more collateral backing them than debt, known as overcollateralization. This eliminates risk of non-payment for depositors. The UwU treasury earns a small amount of fees to cover bad debt in the event of extreme volatility. Borrowers do not have a repayment schedule with no limit on loan duration. UwU Lend is non-custodial; no user funds can be seized by the protocol.
UwU Lend Storage Key Points
|Coin Name||UwU Lend|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Why Uwu Lend?
UwU Lend has evolved from AAVE, the largest lending and borrowing market on Ethereum. AAVE’s contracts have been thoroughly audited and battle tested so users can have confidence in using. The protocol has no DAO or governance friction of any kind. Protocol earnings are paid directly to Lend stakers in the form of a basket of assets the protocol supports.
How to Use UwU Lend
Connect to UwU Lend
Connect your wallet using the button in the top right corner. Multiple wallets are supported. If you do not have a wallet, you can go to install the popular MetaMask wallet on desktop. It will add a browser extension to connect to other DeFi apps. The mobile version contains a built in browser inside the app. Your wallet must connect on the Ethereum network where the app resides to interact with .
Depositing into UwU Lend
Go to the Deposit section and select the asset you want to deposit. You will need to approve UwU Lend to access the asset you want to deposit if you have not done so before. Now you can deposit into and immediately begin earning interest based on protocol and borrowing demand. All deposits are approved collateral to take out loans if desired. Interest earned by deposits auto compounds the position with no need to harvest or claim rewards. Some assets may have a deposit or borrow cap to keep exposure to volatility healthy.
To withdraw simply go to the Deposit section and press “Withdraw.” Determine the amount to withdraw and submit.
If you have an asset deposited you can borrow against it. Select Borrow from the dashboard and press “Borrow” for the asset you want to borrow. You can see the variable interest payment required to borrow from here. Set the amount you want to borrow against your available deposit(s). The most liquid assets such as LUSD and DAI allow you to borrow up to 90% LTV (loan to value).
Liquidation may occur if the value of the assets borrowed reach the value of the collateral deposited. This may happen in the event of collateral reducing in value, the borrowed asset gaining value, or both. Borrowers may see the health factor of their loan on the “Borrow” page. Higher health factors are at less risk.
Users may choose to borrow if they want to hold an asset because they believe in its growth potential. Borrowing against it frees capital to invest in other protocols, leverage positions or pay expenses while keeping exposure to potential upside.
How to Borrow
You need an asset deposited to borrow against. Select Borrow from the dashboard and press “Borrow” for the asset you want to borrow. You can see the interest payment required to borrow from here. Note that interest rates on loans are variable. If a high percentage of the asset you are borrowing is lent out the rate will increase. Set the amount you want to borrow against your available deposit(s).
The borrowable amount depends on your collateral value, available liquidity of the asset you are trying to borrow, and the LTV of your collateral. If your collateral has a 50% LTV that means you can borrow against half of its value so long as enough assets are available to borrow. Each asset has its own loan parameters in the “Accepted Collateral” section.
Loans are repaid in the asset borrowed. Borrowing wBTC against wETH will require wBTC to be repaid with any interest accrual to free all your collateral for withdrawal. Users may also opt to sell a portion of their collateral to repay their loan via a flash loan. In this example the amount of wETH needed to cover the loan will be sold into wBTC to clear the debt. All of this happens behind the scenes but may incur high slippage for low liquidity assets, extremely volatile markets, or large positions. There is a 0.09% fee for flash loans.