Annex Finance is a lending and borrowing platform based on Decentralized Finance (DeFi) that attempts to bridge the gap between existing lending platforms and DeFi. Annex Finance understands the inefficiencies and difficulties associated with existing centralized financial systems and is working to develop a better solution by using the power and flexibility of DeFi.ADVERTISEMENT
Introduction
The use of blockchain in decentralized finance has resulted in a tremendous amount of variety in the crypto-financial arena. For new users, this may be quite intimidating. In order for the concept to be widely embraced, the Defi space must be user-friendly and secure across the network.
In conventional financial lending systems, a borrower must offer credit or verifiable income to a lender before lending funds are considered. Annex Finance attempts to alleviate this friction in the traditional lending system by employing digital assets and cryptocurrencies as collateral that can be pledged and utilized to generate interest.
Annex finance is not the first decentralized financial platform to try to bridge the gap between traditional lending platforms and blockchains. Annex Finance benefits from the lessons learned from these previous initiatives, resulting in a much-enhanced platform.
Annex Finance will be the first to provide a DEX swap, allowing users to produce LP and liquidity themselves in order to get high APY returns and boost ANN price/volume while also letting users borrow and supply assets using smart contracts.
Features
To enforce the project’s commitment to the benefit of the community. Annex Finance will be launched with the following:
BEP20 tokens swap & Liquidity Mining.
Borrowing cryptocurrencies and stablecoins with collateralized lending through the Binance smart chain network.
Supply cryptocurrencies and stablecoins and earn variable APY for providing liquidity to the protocol.
Borrow stablecoins from supplied collateral.
With ANN, the first liquidity source will get an exceptionally high APY. Annex Finance will have a time lock system to manage the value of funds. Users will be able to pick a lock-up time; the longer the assets are locked, the greater the ANN APY will be paid out.
Securing native LP enables users to earn a high APY in exchange for supplying liquidity to the system.
The ANN token will serve as a governance token for the community, as well as a support token for any future projects.
The project token will be distributed with an initial distribution quantity of 50,000,000 tokens, with a total restricted supply of 1,000,000,000 tokens released during the duration of the platform’s growth.
Their liquidity will be managed by smart contracts, and only stakeholders will have access to their own money. A security audit will be conducted as quickly as feasible to provide investors with peace of mind that all money is secure.
Product Utilities
Annex Auction
Annex Finance has pioneered a new mechanism of onboarding projects to the AnnexSwap exchange. Annex Auction is a set of ready-to-launch open-source smart contracts designed to assist projects in launching on the AnnexSwap exchange by increasing the desirability of the ready-to-launch token.
This function has a lot of advantages for both the new project that is about to start and Annex Finance. “The primary feature of Annex Auction is that it offers Initial Liquidity Providers for new listing tokens at low rates and keeps the auction token price higher than the listing price,” according to Annex Finance’s Whitepaper.
Annex Lending
The Annex Lending protocol has developed a collateral token known as aToken. According to the Annex Finance Whitepaper, “aTokens represent the unit of the collateral given, may be used as a redemption mechanism, are produced and executed by Governance procedures, and are voted on by Annex Token holders.”
Users of Annex Finance will be able to provide supported crypto assets to the platform, which may be utilized as collateral against loans, supply liquidation, and capitalizing on the APYs given. Users who have provided Annex Finance with their digital currency will obtain an aToken, such as aBTC or aBNB. The aToken will be used to redeem the provided collateral.
Users who want to borrow supported cryptocurrency from the Annex Finance platform must deposit collateral or aTokens that get locked in the protocol. However, once completed, customers can borrow up to 80% of the collateral value. A liquidation event will occur if a user’s collateral value falls below the collateral ratio level.
Annex Finance’s Automated Market Maker (DEX)
Annex Finance’s platform will also have an Automated Market Maker (AMM) DEX component, allowing users to trade and mint LP tokens. This will provide active Annex Finance users with the opportunity to earn large APYs while also raising ANN price and volume.
Exclusive yield farming for aTokens will also be possible on the platform. Users may substantially increase their cash by taking advantage of extra chances by utilizing their DEX mechanism. SushiSwap’s code will be used on the platform’s DEX to improve token farming.
NFT Marketplace
Annex Finance will also host a Non-Fungible Token (NFT) marketplace where users will be able to purchase, sell, and swap NFTs. Users will be able to mint NFTs using Annex Finance’s NFT minting tool. Annex Finance’s native token, ANN, will be utilized to bid on for-sale NFTs.
Source : bscdaily
