Introduction to Plend

What is Plend?

Plend is a decentralized non-custodial liquidity market protocol built on Etherlink. Users can participate as suppliers or borrowers within the Plend ecosystem. Suppliers provide liquidity to the market to earn passive income, while borrowers can borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) manner.

Starting with a native money market on Etherlink, Plend will evolve into an aggregator of EVM lending markets across all L1 & L2s with a loan/collateral-shifter showing the optimized route and realtime rates.

Why Plend?

Plend Protocol has undergone rigorous auditing and security measures, ensuring a robust and safe platform for users. The protocol is fully open-source, enabling anyone to interact with a user interface client, API, or directly with the smart contracts on the Etherlink network. This open-source nature empowers developers to build third-party services or applications that interact with the protocol, enhancing the overall ecosystem.

How do I interact with Plend?

To interact with Plend protocol, simply supply your preferred asset and amount. By supplying assets, you can earn passive income based on the market borrowing demand. Additionally, supplying assets allows you to borrow by using your supplied assets as collateral. The interest you earn from supplying funds helps offset the interest rate you accumulate by borrowing.

What is the cost of interacting with Plend?

Interacting with the protocol incurs transaction fees on Etherlink, which depend on the network status and transaction complexity.

Where are my supplied funds stored?

Your funds are allocated within a smart contract on Etherlink. The smart contract code is public, open-source, formally verified, and audited by third-party auditors. You can withdraw your funds from the pool on-demand or export a tokenized version of your lender position. These tokenized assets (pTokens) can be moved and traded like any other cryptographic asset on Etherlink.

Is there any risk?

No platform can be considered entirely risk free. The risks related to the Plend platform are the smart contract risk (risk of a bug within the protocol code) and liquidation risk (risk on the collateral liquidation process). Every possible step has been taken to minimise the risk as much as possible-- the protocol code is public and open source and it has been audited.