Of course, we firmly believe that in the flood of DeFi, decentralized lending is one of the most practical applications of blockchain at present. DeFi lending can not only meet the most essential borrowing needs of finance, but also greatly improve the borrowing efficiency of users. The future market potential of this track is huge and worth exploring.
- How has the response from the market been so far since launch? (turnover, user base, etc)
Guest: LendHub was launched on Huobi Global at 15:00 (GMT+8) on May 6, 2021. After that, the 24-hour trading volume of LHB/USDT trading pairs exceeded 31.07 million U.S. dollars, and the 24-hour trading volume of the entire network exceeded 42.5 million U.S. dollars, The total amount of pledges in the second pools exceeded 5.19 million U.S. dollars.
As of May 11, the LendHub platform TVL and currency holding address data have leapt to the top 5 in the DeFi lending market, second only to Compound. Prior to this, LendHub's multiple data have led the Heco lending track for a long time. The total amount of platform deposits exceeded 1.86 billion U.S. dollars, and the maximum locked value exceeded1.128 billion U.S. dollars.
- What does your average user/investor look like? Average lending/investment?
Guest: At the initial stage of the project, users of LendHub platform were mostly professionals in the industry, such as well-known investors or users with financial strength in the industry, or early digital currency trading groups. Because most people would think of decentralized lending platforms as professional financial instruments.However, as we introduced more and more ordinary users to "how to use the DeFi LendHub platform to maximize profits", more and more ordinary users began to become loyal users of LendHub platform.
- What are the biggest challenges in attracting new users and investors to the DeFimarket?
Guest: With the rapid expansion of the DeFi lending market, more and more DeFi lending platforms have emerged, but it is worrisome that many lending platforms ignore security in order to go online as soon as possible to seize the market and pursue speed. Security accidents such as contract loopholes occur frequently, which makes many users bear huge economic losses. This has caused many new entrants to the DeFi market to worry about the security of DeFi's loans. One of LendHub's biggest challenges in expanding the market, especially in attracting new users, is how to prove that user assets are safe.
The LendHub team takes the security of our platform assets extremely seriously and always puts security at the top of its agenda. Since its launch on January 14, the platform has been safe and there has been no accident. The code is completely open source in the first time. At the same time, LendHub has passed the security audits of many well-known companies, and in order to maximize the stability of the system's price feed, it has chosen to reach a strategic cooperation with the oracle Chainlink.
- What makes Lendhub token a good long term investment?
Guest: There are 3 reasons why LHB has become a user's long-term investment project: First, the safe and steady development.The founding team of LendHub understands that all development must be based on asset security. To allow users to deposit with peace of mind, this is the basis for continued empowerment of LHB. Second, innovative development of lending products. LendHub innovated and launched automatic reinvestment type LP compound interest mining, which greatly improved the user's fund utilization rate. The platform will use 30% of the handling fee for repurchase and destruction of LHB and HT, of which 20% will be used for repurchase and destruction of LHB and 10% will be used for repurchase and destruction of HT, and the platform will destroy every 10 minutes. In addition, the community will vote on whether the platform will be able to launch a popular asset. The birth of these innovative products has injected vigor into the development of LendHub. Third, we need to pursue long-term sustainable development. LHB team tokens will be unlocked for 10 years, which is the longest team token unlock time in history. The total amount of LHB tokens is 1 billion, of which 800 million is generated by borrowing and mining, and 200 million tokens are linearly unlocked to the team over 10 years. This move also demonstrates the team's determination to develop LendHub into a head lending platform.
- Futurewise, what will you base your growth and expansion on?
Guest: The expansion of LendHub is based on the consensus of the community. In the strategic goal of the platform's global development, the platform will actually empower the LHB holders' rights and interests through community governance. Every coin-holder has the right to decide the direction of ecological development, so that community governance can play a leading role in ecological development. "Everyone governs the ecology, and ecology empowers everyone."
- Where do you realistically see blockchain technology, DeFiand mainstream adoption in 5 years from now vs. your wishlist?
Guest: Looking ahead to blockchain applications 5 years from now, what I look forward to most is that when DeFi grows, decentralized applications on the Internet that can actually be given value, such as Taobao, Tik Tok, WeChat and other Internet giants, also start to realize fast payment, financing, transaction and other processes in the DeFi world. It can even realize cold start quickly by means of hair token and mining, and realize network effect by combining block chain with DeFi and mainstream Internet technology. In addition, I hope that five years later, countries will start to effectively regulate DeFi from an open perspective, so that blockchain finance can develop in an orderly and healthy way.
- What's one key component of LendHub that you think people don't fully know or understand?
Guest: As I said before, people will subjectively think that the LendHub decentralized lending platform is not suitable for primary users, but is a professional financial tool, or you need some professional guidance on how to make good use of LendHub. However, with the development of the DeFi lending market, more and more people will begin to use specialized financial instruments to expand their returns. In the future, one of the development goals of the platform is to attract more new users to deposit and borrow on the platform, and truly gain more benefits through the use of LendHub platform.
- Why did you partner with Heco?
Guest: First of all, the Heco chain is energy-saving and efficient, which can realize the flash lending. Heco produces a block every 3 seconds on average, and the TPS reaches 500+. The high-performance public chain enables the lending to be completed in seconds. Secondly, the transaction fee on Heco chain is as low as 0.001U/ transaction, which is 1/140 of the similar public chain and 1/1800 of the ETH public chain. Compared with the high service fee of Ethereum, LendHub users only need to pay very little GAS fee to mine LHB. In addition, the official announcement that Huobi Ecological Fund will focus on supporting Heco's "Lending" track quality projects, I believe that with the attention and support of Huobi Ecology, LendHub will achieve more outstanding results.
- What's the best way for me to stay in touch with your project?
Guest: LendHub can make rational use of assets to obtain higher returns. Under the ecology of Huobi chain, there are many things that can be done with LendHub.
(1)Shorting by borrowing currency. At present, there is no financial derivatives trading platform in Huobi chain ecology, so when users want to short a certain currency, they can only recharge the currency into Huobi in general to short. However, if users make reasonable use of LendHub, when they predict that the price of a certain currency will fall, they can borrow the currency and sell it at a high price. When the currency falls, they can buy it at a low price and then return it to LendHub. In this way, they can short a certain currency.
(2) Single mining by borrowing currency. At present, there are a lot of various DeFi projects in the Huobi ecological chain. Whenever a "new mine" is online, the income of the first mine will be very high in general, and the gap between the mining yield of different currencies will be very large. How do you ensure that you maximize your mining income at this time? Quite simply, comparing the mining yield of each asset, and then borrowing the currency with the highest mining efficiency through lending and borrowing at LendHub to participate in new mines, so that you can get the maximum yield.
(3) Borrowing currency to participate in liquidity mining arbitrage, for example, user A only has USDT in hand, and the income saved will be very low. However, if part of USDT is used as collateral in LendHub and MDX is lent to participate in MDEX's liquid mining, he can get 400% annualized return and LHB mining reward. Subtracting the fickle losses of liquid mining and the interest on borrowing money is the final real return.
Cross-market future-spot hedging arbitrage, this is mainly through hedging with the contract market to arbitrage the funding rate. For example, when the contract funding rate of a certain currency is negative, and the funding rate can be obtained by 'going long', you can borrow the currency to go short through LendHub, open long perpetual contracts, carry out hedging arbitrage, and earn daily users Contract funding rate.
The above is the most common way to maximize profits by using LendHub in the market. It is hoped that LendHub users can use the LendHub lending platform flexibly. Interested users can learn about the platform through the official website：https://www.lendhub.org/.
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