Last updated
Last updated
Welcome to the LEND Finance Safety section 👋
The sustainability, safety and overall longevity of the LEND protocol is something we’ve kept in mind since day one. We aren’t aiming for overnight success, we’ve been building this ecosystem for over a year and aim to stick around for many more. So this page is designed to discuss all of the steps we're taking to protect YOU the user and ensure the longevity of the LEND ecosystem. With LEND we really wanted to ensure protocol safety from any adverse events. To protect our users and ourselves we have adopted a risk mitigated approach to all aspects of the platform. Check out some of the features below 👇
Secured Collateral Requirement — All borrowers required to be overcollateralized for optimal liquidity within protocol. This means users have to provide more collateral than they are able to borrow. Doing this protects both Lenders & Borrowers as it means Borrowers are less likely to find themselves with bad debt, and Lenders can rest easy knowing their deposits are secured.
Automated Liquidations— Unhealthy borrower accounts that go into negative equity will be liquidated by the protocol to remove bad debt. This is to maintain ecosystem health and further protect the original Lenders' deposit.
For Lenders, these features means you can provide assets and earn interest without the need to be exposed to much counter-party risk.
For Borrowers, that means you’re much less likely to end up with negative equity and be subject to liquidation.
Non-Custodial— As we are a DeFi ecosystem you can access our platform directly from your wallet app. LEND doesn’t directly hold your funds when you use the platform: you will always have 100% ownership of your own crypto
We have NO access to your deposits - Your funds are exactly that YOURS. Deposits cannot be accessed by any other wallet besides the original depositing address.
Risk Management— As a team we are 100% dedicated to ensuring the safety of users' funds and the longevity of our platform. Our founders have a collective experience of 50+ years within TradFi asset management. As such you can expect the LEND experience & our operational treasury to be subject to the same high level of scrutiny required to manage award winning funds.
FLASH LOANS— Yes as LEND has no flash loan functionality so this is not a concern.
Security Audits — Industry leading experts at PeckShield and D3PLOY have reviewed and approved LEND smart contracts multiple times. You can read the latest report from PeckShield 👈 or the Audit from D3PLOY 👈
Only Liquid Assets — LEND will only ever support the most liquid assets on the market. This has been done to avoid protocol manipulation that might result in total systemic failure. () Doing this prevents the protocol from being exposed to debt that could be easily manipulated.
Discover how the LEND Finance platform is designed to protect ALL of our users and the sustainability of our ecosystem.
