Deerfi, a lending protocol for Uniswap liquidity providers, has announced that its Deer FlashLoan protocol, a permissionless flash loan marketplace, is now live on the Ethereum mainnet.
Flash loans are compelling with lots of use cases such as performing arbitrage strategies, executing liquidations, swapping collaterals, and many other creative use cases.
However, the current flash loan market is inefficient. First, not all token holders are willing to provide liquidity on DEX due to impermanent loss. Also, most tokens cannot generate passive income, like providing liquidity on Uniswap. Further, the lending protocol cannot accept all tokens due to volatility.
The Deer FlashLoan protocol makes flash loans available to all tokens. The key features of the protocol are:
- Permissionless: Like Uniswap, users are free to create massive asset pools on the Deer Flash Loan protocol.
- Low Fee: 0.05% per flash loan, adjustable through governance.
- No Impermanent Loss: Guaranteed to be profitable for liquidity providers.
- Passive income for unused tokens.
Comparison between Flashloan providers: Aave vs. dYdX vs. Uniswap vs. Deer:
Governance and Liquidity Mining
“Decentralization is the core value of Deerfi. We use a two-phased governance model. In the current phase, we use a 2-day TimeLock contract to manage all Deerfi protocol contracts. In the second phrase, Deerfi governance and liquidity mining will be up and running when there are enough users and liquidity in the protocol. This model guarantees our community forms a consensus about the value of our protocol and fairness of token distribution.”
– The Deerfi Team