EARN Lending Protocol
EARN Protocol, the Enhanced Autonomous Rewards Network, operates as a decentralized finance (DeFi) protocol, enabling interest-free collateralized borrowing. Users can borrow $PXDC (PulseX Dollar Coin) by depositing $PLSX ($PulseX) into a Vault with a minimum collateral ratio of 110%. Its dual-token system offers an appealing alternative to traditional finance and other DeFi protocols.
- Interest free borrowing.
- Low minimum collateralization ratio of 110%.
- Immutable — no admin keys.
- Censorship resistant.
- A user can open a Vault, deposit $PLSX, mint $PXDC, and manage their own collateral health. There is a $500 $PLSX minimum loan amount per Vault.
- There is a one-time fee when opening a Vault. This fee ranges between 0.5% - 5% depending on the overall health of the system.
- When a borrower opens a Vault, a $50 worth of $PLSX fully refundable retainer is held. This retainer is surrendered only if the Vault is liquidated. When closing a Vault, the retainer is returned to the user.
- There is no fee to pay down debt or close a Vault.
- $PXDC is always directly redeemable for $1 worth of $PLSX.
- Users are incentivized with the emission of $EARN tokens when $PXDC is deposited into the Stability Pool. This pool is used to settle any debt from liquidations.
- There are two ways in which stability depositors are rewarded. The first one is through $EARN emissions, and the second one is by receiving $PLSX from liquidation events.
- When a Vault is liquidated after falling below the minimum collateral health requirement set by the protocol, stability depositors obtain $PLSX from liquidations. This clears the corresponding debt by utilizing pooled $PXDC in proportion to a user’s staked percentage of the Stability Pool. When this event occurs, the net value of each stability depositor increases.
- Staking pool - Stake $EARN to obtain borrowing and redemption fees proportional to your staked position. Stakers receive $PXDC whenever a new Vault is opened and initial minting of $PXDC occurs, and $PLSX whenever a redemption occurs.
- EARN Protocol can be accessed via a network of third-party Frontends. A list of active front ends can be found at earnprotocol.io, one of which is the POWERCITY Amplifier which simplifies and automates EARN Protocol.