Liquid Loans, a group headed by a group of verified Telegram administrators, is launching on Pulsechain. Here is what we know:
What is this project?
It’s a unique system where you can borrow a stable coin (USDL) using your Pulse as collateral. “The first truly decentralized liquidity platform on PulseChain.”
Liquid Loans is a true decentralized borrowing protocol that allows PulseChain
token (PLS) holders to obtain maximum liquidity against their collateral without
selling, and without paying interest
What are the Key benefits?
- 0% interest rate
- A collateral ratio of just 110%
- Governance free – all operations are algorithmic and fully automated
- Directly redeemable – USDL can be redeemed at face value for the underlying collateral, always and at any time
- Censorship resistant – The contract is immutable and has no owner.
FAQ:
- What happens if you put pulse up as collateral do you ever get it back or its a trade for the stablecoin? You get USDL in the form of a loan for however much you want at 110% collateral. A long as you don’t fall below you won’t be liquidated. If you pay back the loan with USDL you get all your PLS back.
- What will cause a liquidation event? Anything less than 110% collateral.
- So if Pulse PLS appreciates you only still have to pay back your original value and you get back the same amount? You can pull that the PLS you require to convert to USDL and pay off the loan. It price has appreciated since you took out the loan it would take less PLS obviously. $2000 is the min to open a loan.
- When will this protocol launch? It is expected to be ready to launch in production along with the official PulseChain Launch but may hold off for some time to ensure we launch in a stable environment.
- For tons more Frequently Asked Questions about Liquid Loans, click here.
For good measure, we have known the people behind this project for a short time now and they have always been professional and we have deemed that their intentions are good, hence why we decided on this announcement about their project.
Here is their official whitepaper. As always, be sure to do your own research and due diligence.
LiquidLoans website.
LiquidLoans on Twitter.
LiquidLoans on Telegram.
