DeFiner was founded in 2018 with the vision of returning the true financial power back to the people. The way to do this is by advancing financial trust, growth, and simplicity through the blockchain. The DeFiner team has always kept innovation in the front and center of product development. Consequently, the DeFiner protocol is constantly evolving to meet the needs of an ever-growing and ever-advancing web3 technology and community.
HODLer Market - First Stage of DeFiner 2.0
DeFiner started as a peer-to-peer (P2P) lending protocol, which then changed into a lending pool model. Now, We're thrilled to announce the beta launch of our long-awaited HODLer Market! This product release marks the beginning of DeFiner 2.0 - a permissionless and configurable DeFi lending protocol with privacy 100% protected.
The HODLer Market introduces DeFiner 2.0 features, such as the Smart Contract Factory and configurability based on risk controls, interest rates, and oracle models. The permissionless aspect of the market offers the infrastructure to empower anyone to create isolated markets for lending and borrowing, supporting any ERC-20 token and BEP-20 tokens. Just like anyone can go to UniSwap to create a token pair, anyone can come to DeFiner to become a HODLer Market Creator.
The idea behind the name stems from one of the biggest questions many DeFi protocols have, ""How do I stop users from dumping my token?" Mercenary capital has been affecting DeFi for years now, especially when projects start incentive programs for their community - e.g., liquidity mining. These programs both attract investors and encourage them to farm and provide liquidity via the protocol's governance or utility token with the promise of high returns. However, the reality is that these programs tend to attract capital for short-term gains instead of supporters who stick with the protocol long term.
HODLer Market Use Cases
The HODLer Market is more than just lending and borrowing; it offers a platform where protocols can create their own incentive programs - e.g., liquidity mining - with a lock-up mechanism, and more. Projects can use this infrastructure to build strong communities, avoid the death spiral, and take the utility of their tokens to the next level.
Here's how you can leverage the power of the HODLer Market:
- 1️⃣ Lock Your Token After TGE. When new tokens are created (TGE), they usually have a vesting period, which increases selling pressure. With the maturity date set up (lock-up function), HODLer Market Creators encourage their users to HODL and grow together. When the market is up, users promote; when the market is down, users borrow against their locked assets to unlock capital.
- 2️⃣ LP Token Lock-Up. One of the major problems in DeFi is mercenary capital creeping into LP mining programs. When these rewards dwindle or stop altogether, these mercenary miners go to the next "big thing", leaving behind a dead community and a worthless token. With the LP token lock-up function, HODLer Market Creators can set an LP mining program and avoid mercenary capital.
- 3️⃣ Auto Vesting. Creators can use the HODLer Market as a vesting tool right after TGE. They have the option of having either a linear or an interval vesting mechanism. If linear is preferred, Creators can use the tokenized position as the base or collateral token and their native token as reward. On the other hand, an interval vesting schedule would require Creators to use their native token as the base or collateral token while setting a maturity date for their market. With auto vesting, HODLer Market Creators can have a flexible and transparent TGE.
- 4️⃣ Unleash the Value of Unvested Tokens. The HODLer Market can provide investors with the flexibility to trade, transfer, and borrow against their unvested tokens.
- 5️⃣ Salary Issuing. Now, DeFi protocols and DAOs alike have more options for salary issuance. Projects can definer a lock-up period when issuing tokens as salary. Team or DAO members can easily borrow against their locked positions. Everyone can HODL, borrow, earn, and grow together.
- 6️⃣ Airdrop HODLer. The HODLer Market enables Creators to attract and retain more users while increasing airdrop ROI. Creators have two options when using the HODLer Market for airdrops: 1) Direct airdrop with lock-up period; 2) Linear vested airdrop rewards.
- 7️⃣ Leveraged Long Position. Investors can utilize the HODLer market to add leverage to their token holdings after TGE. The cycle is simple for users: Deposit the token ➡️ borrow stablecoins ➡️ buy more tokens ➡️ deposit back to the HODLer Market and repeat 🔄. Note: A higher collateral factor for a market with this purpose in mind may be required for higher leverage.
- 8️⃣ Initial Loan Offering (ILO). DeFi projects have the ability to raise funds through debt via the HODLer Market. This means that more retail investors can come in and build the community through crowdfunding at an early stage. Everyone is participating and invested in the project. Gone will be the days of high pressure and high expectations for new projects in web3.
- 9️⃣ Governance. The HODLer Market is a tool that DeFi protocols and DAOs can use to facilitate the governance process. They can generate governance tokens while encouraging their users to HODL. Simply, Creators can set a market for their governance tokens and have stTokens issued for users, which can then be swapped into veTokens. This way, projects and DAOs grant voting power to long-term supporters.
How to Become a HODLer Market Creator
To become, or not to become, that is the question. To determine if you want to become a HODLer Market Creator, ask yourself these simple questions:
- Do we see a need for a lending/money market for our token?
- Do we want our token holders to unlock more capital using our token?
- Is our community looking to compound more value and earn more using our token?
- Do we want to decrease selling pressure and avoid mercenary capital for our token?
- Do we launch airdrop campaigns regularly?
- Are we looking to build an incentive program to attract more users to our ecosystem?
- Are we looking to issue governance tokens for our project or DAO?
- Do we want to build deeper liquidity for our token?
- Do any of the use cases described in this article apply to us?
If you answered YES to any of these questions, you might be in need of a HODLer Market. The process of creating a HODLer Market is simple and convenient. Anyone can create a market in 3 steps:
Step 1: Market Deployment. Visit the DeFiner App and go to the "HODLer" tab. On the top right corner, select the "Create a Market" button to start the deployment process. In this step, you have control over the following aspects of your market:
- Collateral token.
- Initial price and oracle model.
- Loan currencies.
- Collateral factor.
Step 2: Market Initialization. Once the market is deployed, another pop-up window will appear with your market ID and a prompting for you to initialize the market. Please keep your market ID in mind, as it is the information that the DeFiner team will need to better serve your market. You will get information about the parameters you set in the previous step and will be asked to pay a $150 initialization fee. This fee goes to fund DeFiner HODLer Market maintenance and operations. Additionally, a portion of this fee is given to the DeFiner community. Initializing the market enables you to configure it, which is the next and final step of the HODLer Market creation process.
Step 3: Market Configuration. This step is the bread and butter of the whole process. Here, you will have the ability to set up the following parameters for your market:
- Maturity date (6 to 12 months recommended).
- Loan APR range (10% to 20% recommended).
- Mining rewards.
Great job! Now you have a HODLer Market ready for your token! This process shouldn't take you longer than 15 minutes to complete. If you are a DeFi project or DAO looking for more information, a personalized demo, or support for your HODLer Market, please email our Customer Success Manager, Jeral, with your contact information, market ID, and your request here.
The HODLer Market Beta Launch is just the beginning of a new era not only for DeFiner, but also for web3 as a whole. The DeFiner team will be announcing HODLer Market launch partners regularly in the upcoming weeks and months. So stay tuned! Build a loyal and strong community behind your protocol and/or DAO - come and become a HODLer Market launch partner. For a better Web3 DeFi experience - cheers!
DeFiner is a permission-less and configurable decentralized lending protocol with privacy 100% protected. DeFiner’s configurable lending protocol enables users to borrow, earn and stake any crypto assets privately.
DeFiner removes the extant restriction and centralized control in DeFi and offers flexibility to create a customized lending market where users can borrow funds against any crypto asset.
DeFiner also enables users to create staking pools and set configurations to lock up liquidity and reward communities.
By participating in staking and lending pools, crypto investors can earn passive income from their parked crypto asset on DeFiner’s globally available marketplace. Users have the option to transact in a private model to protect their privacy.