Neptune Finance: on injective
Introduction:
Embarking on its journey in May 2021 with a focus on integrated leveraged vault strategies, Neptune’s narrative takes an intriguing turn after the transformative events of May 2022. This pivotal moment spurred Neptune to pave the way for an innovative money market, reshaping the landscape of decentralized finance.
Neptune Finance Unveiled:
At the core of Neptune’s evolution is the creation of Neptune Finance — a groundbreaking collateral-based lending and borrowing platform meticulously crafted using Rust and the Cosmos SDK. This development kit, engineered for interoperable networks, serves as the backbone for Neptune Finance’s seamless functionality.
Leveraging Neptune:
Neptune Finance empowers lenders to earn interest by extending loans to borrowers who secure their transactions with collateral. Lenders reap rewards based on their proportional share of the interest paid by borrowers, minus any applicable protocol fees.
Getting Started:
To access the Neptune protocol, users must possess a Supported Wallet such as Keplr or Metamask, along with the Gas Token (INJ) to cover transaction fees. Connecting to the Injective Blockchain using your wallet, navigate to the Neptune app button at nept.finance to unleash the full potential of the platform.
The Role of Gas Token (INJ):
Integral to the Neptune protocol is the Gas Token (INJ), a nominal amount of which is required to facilitate transactions within the network. Discover how to obtain INJ and seamlessly integrate it into your Neptune Finance experience.
Supported Assets and Networks:
Neptune operates on a whitelist system for assets, only approving specific assets for lending, borrowing, and collateral use. Additionally, the platform is available exclusively on the Injective blockchain, accessible at app.nept.finance.
Conclusion:
Neptune Finance emerges as a pioneering force in the decentralized finance space, seamlessly blending collateral-based lending with cutting-edge technology. As users delve into the realm of Neptune, they unlock a world of possibilities, shaping the future of decentralized financial ecosystems. Join the revolution at nept.finance and witness the evolution of finance with Neptune.
Lend
Users can deposit assets to Lend and earn a share of the Interest that borrowers generate. Once an asset is deposited to the lending market, users receive nTokens.
nTokens
nTokens are used to claim the lender’s tokens from the lending pool plus the interest accrued. The issuance of nTokens allow depositors to lend while retaining the ability to use the asset as Collate https://docs.nept.finance/__attachments/12812353/deposit%20for%20ntoken.png?inst-v=fc304afc-f508-4b77-bc41-ca8a201de28b ral.
Borrow
A user can open an Account by providing Collateral. Once an account has collateral, the user can Borrow. Borrowers pay Interest for the duration of the loan (exception: Flash Loans).
Collateral
Collateral is used to ensure debts are repaid.
Collateral assets can be volatile. It is the responsibility of the borrower to ensure their account’s collateral can maintain the value of the debt. If a borrower’s Account Health falls below 1.0, a partial Liquidation should be expected for that account. Since each account is separated, a liquidation for one account will not affect other accounts.
Each collateral has a Max LTV that is used when opening a position. Each new collateral asset added must be approved by governance (see Token Listing Framework). Token values are determined using a multi-source Price Oracle.
Max LTV
The Max LTV is the maximum loan value that each collateral asset can borrow. For example, if an account has $100 value of INJ with a Max LTV of 80% then the account can borrow up to $80 value of other market tokens.
Accounts
Borrowing is done through Accounts. Each account is a separate borrow position with its own Account Health. This means one Supported Wallet can have multiple borrow positions.
Account Health
Account Health measures an account’s proximity to a Liquidation.
An account can be liquidated when it reaches an account health below 1.0. When an account becomes unhealthy, debts are repaid by liquidators and collateral is taken until the account reaches its Target Liquidation Health. Accounts with collateral that do not meet the Partial Liquidation Threshold may be entirely liquidated. To improve account health, a borrower can repay debt or add collateral.
Cross Margin
An account that uses multiple assets as Collateral is a Cross Margin account. Using a mix of collateral assets can help limit the impact of price volatility on one asset that could cause a liquidation event.
