Lendroid, a non-rent-seeking startup and open protocol for decentralized lending that enables margin trading and short selling of ERC-20 tokens by using architecture inspired by 0xproject announced it will partner with Radar Relay in working to bring margin trading, a critically important financial instrument, to the token economy.
Together, the teams will introduce new participants (Wranglers), increase networked liquidity (through lending pools), and improve price discovery (through shorting). Off-chain signed data propagates an intent and on-chain settlement carries out that intent, which avoids the current computational limitations and gas costs of being entirely on-chain. Lendroid functions through the use of smart contracts, allowing it to be modular, decentralized, and trustless.
“Bringing new financial instruments is challenging enough, but when we’re out to reimagine trading itself, it takes some serious competence and adaptability. In Radar Relay, Lendroid has found the ideal innovation partner.”
Lendroid Support Token
The Lendroid Support Token (LST), the ERC20-compatible native token of the protocol, has been envisioned for a three-fold objective – to lubricate processes and drive utility on the protocol; to incentivize participation, and to empower governance.
There are four actors in the Lendroid protocol: two of whom provide utility — Lenders and Relayers; and two others who make use of these utilities and participate to maximize profits — Margin Traders and Wranglers. The new actor introduced by Lendroid is the Wrangler. By monitoring and ‘Wrangling’ terminal accounts (at liquidation level), the Wrangler maintains the general health of the ecosystem, while also protecting the interests of the lenders.