What’s the next collateral for Llama Lend?
Several interesting ideas got floated… rETH, TryLSD, weETH, ezETH, rswETH, FXS.
But the winner was…?
Admittedly not the collateral we expected, but there’s a bit of a backstory, part of which is that Mich is a power user of lending platforms that accept $CRV, of which UwU is one.
It gives us a nice snapshot of how Llama Lend might look with extremely volatile collateral, for which one imagines several interesting memecoins might fit the bill. In this case, the starting LTV is 55%, and the market is taking off nicely.
For its affiliated Curve pool, an UwU/ETH pairing NG pool was launched and seeded.
The team at UwU Lend also tossed up a blog post, which mostly provides a nice primer for the uninitiated on how Llama Lend works.
What if you are familiar with Llama Lend, but not UwU? The mechanics of UwU Lend will be familiar to anybody who has used Aave v2, as it orginated as a fork of the battle tested code.
There’s plenty of differences from Aave, of course. As described in the launch article, “UwU Lend is not a DAO and therefore not subject to governance friction or slow results.”
UwU features short term lockups for LPs, with early withdrawal possible:
“LPs are only locked for eight weeks. UwU emissions directed to lenders and borrowers are vested for four weeks but may be claimed instantly for a 50% penalty. That penalty is given to LPers as a bonus”
The revenue mechanics are detailed on the homepage:
UwU Lend shares 100% of revenue. While LP stakers receive the majority of revenue, 10% is used to support buybacks for our xUwU staking system. In addition to distributing all platform fees to stakers, depositors and borrowers earn rewards in UwU. All rewards and current percentages are displayed on the dashboard.
The protocol’s xUwU staking system earns compounding rewards. 10% of protocol revenues are used to repurchase UwU, which is added as rewards for stakers.
Other touted features:
One of the major difference is simply in the choice of assets available to borrow. The team launched support for $CRV and $crvUSD in February. Here is a snapshot of current borrow APRs:
A snapshot of key stats for the protocol:
As you can see, the platform is doing healthy numbers. $8.6MM in revenue for the nascent protocol, on a TVL consistently in the 8-9 figures.
Other links:
Exciting to see both protocols expand and build together, bringing everything full circle…
WARNING: Graphic content…