Borrow on Lend Flare
For borrowers, who deposit Curve LP tokens and borrow on Lend Flare, the main advantages are:
1) To unlock your staked Curve LPs
Lendflare allows every Curve LPs holders to contract an overcollateralized loan, with Curve LP tokens as collateral. Borrowers keep all the advantages of having curve LPs (see points below), and at same time the opportunity to get an attractive loan.
2) While still earning your Curve and Convex rewards.
In addition to receive new assets when subscribing a loan, Curve LPs used as collaterals are deposited by Lendflare smart contracts on Convex, and continue to earn rewards from Curve and Convex. LendFlare doesn’t take any commission on the rewards earned, they are fully distributed to their respective recipients, exactly just like a normal staking on Convex.
3) Without price liquidation
The assets you can borrow are always pegged assets relatively to your collateral. For instance, if a user deposits mim3crv, he will be able to borrow only stablecoins like Dai and USDC. If a user deposits renbtc, he will be able to borrow wbtc.
Hence, it is highly unlikely to be liquidated, except if the collateral depeg or the duration of the loan is exceeded.
4) With a high Loan-To-Value
Due to the very low risk of price liquidation, it is possible to reach high LTVs. Lendflare currently offers 85% LTV on all available collaterals.
5) At a fixed borrowing rate
Lendflare allows borrowers to subcribe loans on their curve LP tokens at a fixed rate, just above the spot Compound borrowing rate. 6) Without commission fees
Lend Flare does not charge users for any management fees of Curve investment in order to ensure the maximum interest of investor’ assets.
For more information about the borrow process, please read Borrow Asset and How to borrow from Lend Flare.