Imagine you could own a bank.
Anytime somebody pays a bank fee, you get paid.
But in this case, you don’t have to work for the bank, worry about employees, or pay rent.
You simply interact with code on the blockchain. Using your phone or desktop - you press a few buttons and you're done!
The LOAN token allows anybody to do just this with the Liquid Loans protocol on PulseChain.
The LOAN Token, also called the Liquid Loans Token, is a PRC20 on PulseChain which is created by the Liquid Loans Protocol.
By staking LOAN token, users receive rewards from the fees of the protocol in proportion to their size in the pool.
The Liquid Loans protocol has two fees which pay the LOAN stakers:
The LOAN token is a form of utility token, in that when staked, it results in fee generation. It is not, however, a governance token, as the Liquid Loans protocol is governance-free.
Follow these steps for how to buy LOAN token:
If you were not one of the many who sacrificed for the right to have truly decentralized stable assets, then there are three ways to get LOAN token (other than buy it off the market):
The Stability Pool is a liquidity pool full of USDL which functions to automatically repay the debt undercollateralized vaults and seize its PLS as a reward.
Users who choose to deposit USDL in the pool receive rewards in PLS and LOAN token.
The amount of LOAN token issued to stability providers decreases overtime, much like the Bitcoin Halving.
The earlier you get into the pool, the more LOAN tokens you will receive.
In order to encourage users to provide liquidity on PulseX for the USDL:PLS pair, the Liquid Loans protocol will issue LOAN to liquidity providers.
The Liquid Loans dApp will have a function that allows LPs to deposit LP tokens from the USDL:PLS pair and receive an issuance of LOAN token. This will be available for the first 42 days.
The pair is incentivized because more liquidity through USDL helps protect the Liquid Loans system and also encourages the use of truly decentralized stable assets.
LOAN token has # reasons why it can appreciate in value:
There are fundamentally two different ways you can use LOAN token:
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Disclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.
Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.