Joule Finance Launches Composable Money Market Testnet
Introduction
Joule Finance, the premier liquidity hub of Aptos, is excited to announce the launch of its Composable Money Market Testnet Campaign. This campaign allows participants to dive into advanced DeFi experiences through lending, borrowing, and other activities in a gamified manner. Aimed at providing users with ease of unlocking liquidity and overcoming traditional money market limitations, the platform supports various tokens, including native tokens on Aptos blockchain and bridged assests like Liquid Restaked Tokens on ETH. The composable money market serves as a foundational layer, supporting applications for yield aggregation.
Campaign Details:
- Start: May 20th, 2024
- End: May 30th, 2024
Features of Money Market
Lending and Borrowing
Joule Finance offers a robust lending and borrowing ecosystem where depositors enhance liquidity in lending pools and earn interest. Borrowers can use their assets as collateral to secure loans, with borrowing capacity determined by the collateral’s liquidity and risk, guided by a Loan to Value (LTV) ratio.
Isolated Lending Positions
Each lending and borrowing activity is isolated, meaning every position’s risk is independent, even if the collateral is the same. This prevents broad liquidation and offers a more secure and segregated approach.
Composable Infrastructure
The composable money market acts as a foundational layer, supporting applications like yield loops, leveraged yield farms, and margin trading. It provides seamless integration and access to liquidity, enabling users to maximize returns through repeated reinvestment, amplify profits with borrowed assets, and trade larger positions with margin.
Variable Interest Rate
Interest rates fluctuate based on capital availability and utilization in each lending market. Rates are low when there is ample liquidity to promote borrowing and high when capital is limited to incentivize debt repayments and enhance market liquidity.
Efficiency Mode
Efficiency Mode enhances capital utilization, offering greater flexibility in borrowing. It leverages specific asset relationships for more effective borrowing and lending activities, such as using USDC as collateral to borrow USDT or using APT as collateral to borrow amAPT.
How Points Work
- Asset Point Allocation:
Each asset has certain points allocated. (e.g— 10 points per APT, 1 point per USDC). - Lending Points Calculation:
1x points per day based on assets lent. (e.g — If 10 APT is lent then 100 points will be allocated per day) - Borrowing Points Calculation:
7x points per day based on assets borrowed. (e.g — If 10 APT is borrowed then 700 points will be allocated per day) - Multiplier Thresholds:
Multipliers gets applied after point reaches certain threshold.
Note — Our points system is quite unique as all points are issued on chain and can be verified by anyone.
How to Interact with the Money Market Testnet
- Mint Tokens: Mint APT, USDC, or USDT tokens from a faucet or bridge LRTs from the BSC testnet to the Aptos network.
- Lend and Borrow: Use the Main Markets section to lend and borrow these assets.
- Manage Portfolio: Utilize the Portfolio section to manage positions, including adding new lending or borrowing assets, and withdrawing or repaying.
Here’s a video tutorial — https://youtu.be/stf9F_nY1l0
What’s Next —
Joule Finance is in the final stages of security audits and will be launching the composable money market and comprehensive yield aggregation platform for leveraged farming, yield trading, LSTFi/LRTFi, perpetuals, long/shorts, margin trading, and more.
Conclusion
Joule Finance’s Composable Money Market Testnet offers a unique gamified opportunity for DeFi enthusiasts to explore cutting edge DeFi features. Engage in isolated lending & borrowing position, and more within a secure and efficient ecosystem.
To know more about Joule Finance — Check our website : https://www.joule.finance/
