To ensure liquidity for the resource pool, users will provide digital assets to their respective liquidity pools where the aggregated liquefaction corresponds to the borrower’s request. Users may remove their liquidity at any point unless otherwise staked in time-locked pools. BSC ‘gToken’ (Gennix Liquidity Pool Token) represents the assets in their respective pools. Liquidity Token holders retain gTokens in a proportionate sum that reflects the user’s share of the pool and entitlement to interest received over time from the monetary sector. As a result of the borrowing demand, the accrued gTokens are convertible to underlying properties by merely keeping “gToken.”
Borrowing from the liquidity pools means that borrowers who wish to borrow from the money market protocol of Gennix and other ecosystem-integrated protocols can do so using the Gennix system. Users may decide the asset that is being borrowed and what collateral they are using to underpin the borrowing contract, determined by the smart contract of the Gennix platform and lending pools, without having to bargain for terms. This robust, fast methodology for borrowing and providing transparency and uniformity makes the Gennix money market special.
The leverage element indicates the amount of liquidity present in each asset pool, with a smaller number of meaningless liquidity and a more significant number meaning more underlying assets forming the liquidity provision. The ability of users to obtain loans is reliant upon the number of pools of underlying assets and liquidity based on available collateral.
Holders of the Gennix governance tokens can vote on the interest rate formula, codified by a smart contract for the demand curve and represented by the use ratio, baseline interest rate, and reserve ratio. The market supply interest rate is calculated by the borrowing rate, the reserve factor, and the total borrowers’ amount or S total spread in the respective market.
For any operation carried out in the protocol, user balances shall be reflected in proportion or sum of gToken balances. Users will pay for gTokens with the accumulated principal and interest that can be traded for underlying market assets with exchange rates, mint, borrow and repay (Price of gToken for the underlying asset).
As the demand and supply fluctuations in the platform are the deciding factors of interest rates, such rates are measured and consistently adjusted on all borrower adjustments over time. This adjustment is periodically recorded and interpreted for each transaction in the protocol as an interest rate index.
Borrowers are paired with lenders under current standard frameworks. These buyers are paid for their provision of collateral and liquidity by the borrowers paying an interest rate for the borrowed funds. The yield for investors (lenders) is thus encouraged for lenders to serve as liquidity providers and collateral providers to keep liquidity in the platform. They serve as money market traders, thereby providing the reservoirs of liquidity with ample depth.
Stringent and relevant collateral criteria are essential for promoting market access to borrowers. Collateralization is a deterrent to entry since market losses resulting from uncertainty and eventual liquidation must be mitigated. Traditional capital markets provide an adequate measurement of reputation metrics that facilitate users’ creditworthiness through the appropriate entities in position. They then create a sufficient trust in the mechanism to help investing and lending and reduce the inherent risks of defaults or failure to pay.
Because of the lack of access to consumer information, DeFi fails in specific traditional benchmarking mechanisms. To achieve creditworthiness and to report default and failure to reimburse the creditor, consumer data must be retained over a lifetime. However, the rights and data protection of consumers are another pressing issue. It is also appropriate to create creditworthiness, verify data, and protect appropriate privacy. A new, balanced method is followed. Gennix has introduced the Trustscore mechanism for determining such creditworthiness.
Peer-to-peer lending has seen massive growth in the demand for digital lending, with strong developments in the p2p industry occurring in the past two decades. Micro-finance is one of the main uses of peer funding. Since DeFi exploded upon the financial scene, it is our thesis that there is a clear need to serve customers by offering micro-financing. Micro-finance allows real-world deployments of funds and leads to more significant value savings. Borrowing tends to build trust in multi-party relationships and enables micro-financing loans through a common pool and credit delegation to an option seeker that undertakes the risk. The objective of Gennix is to make it easier for lenders to sell small volume, undercollateralized loans. Current lenders are proportionately responsible for the risks of loan default and non-payments. Here the lenders have collateral for pools for several thousands of micro-credit portfolios. By extending the exposure over a wide range of providers, the whole portfolio is protected against catastrophic loss. This makes it possible for DeFi to expand its lending markets to different market segments.
Alternative approaches such as peer funding enable users to get loans directly from other users and cut the middleman. “Know your borrower” is the most crucial factor in a connection that implies that a lender knows whom he lends. The risk pressure that could occur in case of default is therefore taken. But the only way in the absence of an identity layer, in decentralized financing as mentioned above, is to mitigate the primary risk of default through a reliable method in the absence of an identity layer. Credit Delegation plays a key function, namely that of the bi-party arrangement between lenders and borrowers, as a programmed or coded version. A trustworthy arrangement can be signed by all parties to allow the debtor to borrow the capital of the creditor. The interest rate, loan provisions, and other agreements are laid down in an Open Legal Borrowing Arrangement and held as an unchanging reference point. In combination with creditworthiness (TrustScore), the credit risk delegation provides a certain degree of collateralization. It can be converted into noncollateralized loans in the future.
Smart contracts can plan, build, and sell various customized financial products utilizing various protocols or platforms. Smart contracts are written at an increased degree of sensitivity for improved analysis and testing. It may also be combined to make more advanced and productive goods, such as credit swaps, standard swaps, and more.
A collection of linked smart contracts allows TrustScore to be calculated and processed on the blockchain to prevent any prejudices or malicious activities in calculating users’ success in respect of such transactions. These smart contracts seek to archive the historical records of consumers, to analyze and benchmark them according to set criteria and conditions. These are easily customizable smart contracts that provide a large variety of application cases, such as measurement of results, credit rating, and user identity.
Through special smart contracts, cross-chain exchanges may be used in non-custodial ways to lend, lease and handle digital assets in real-time. This allows users to lend assets and collateral to blockchain networks without transferring tokens. Noncustodial collateral contacts establish a synthetic digital asset supply that blocks initial tokens or assets in themselves and enables transfers through different networks. The smart contract extracts the valuation of such assets from business oracles and reconciles the resulting asset values across network nodes throughout the borrowing period. Nuclear cross-chain swaps allow exchanges on separate blockchain networks between the two tokens, while cross-chain bridge interactions between different networks are an immediate solution. The protocol seeks to use these cross-chain bridges to enable the assets to be lent and borrowed for digital assets in real-time, cross-chain atomic swaps. This ensures that asset suppliers (lenders) and borrower companies can simultaneously access various markets and financial products through various blockchain networks.
Risk is implicit in loans and must be administered in line with various conditions in the industry. For instance, micro-finance or non-payment risk seeks specific risk criteria to handle defaults and non-payments. Different criteria, specifications, risk models, and processes are present in various financial goods. The protocol provides a fully agile environment in which risk modeling techniques and specifications can be adhered to, tested, and used. The Gennix protocol aims to establish criteria of risk management that are necessary for interaction with more decentralized protocols, DAOs, and platforms. These criteria and design processes may be suggested, defined, and agreed upon by users to include rigorous governance and the protocol with new risk management capacities.
The Gennix protocol’s online governance model allows various network members to achieve agreement via a direct voting process. The framework for chain management controls the actions of network members with the aim of removing maladjusted actors and encouraging successful actors to get out of the network. This weighted stake system provides stakes, holding higher vote privileges, a choice of different conditions, new laws, markets, collateral limitations, etc., to be proposed and defined. In addition, the protocol specifies the scope of off-chain administration, which is detailed for users sometimes.
Yield farming governance, along with the concept of dual yield farming and a new incentive system based on the GEN governance token, has made decentralized finance much more feasible. The network influence of vested interest contributes to the development of vast liquidity pools of lending collateral. Yield farming allows a robust and highly innovative network. Yield farming means that a digital asset holder who works with his digital assets through investments in the network can lock his collateral within a yield farm in exchange for yield.
To speed up the adoption of the new lending protocol launched and attract new assets to the Gennix platform and lending liquidity pools and its various partner projects and tokens, Geninx will allot a portion of the GEN tokens and the partners’ native tokens to the Gennix platform. In return, the Gennix protocol can provide yield and interest to the users and allow for the liquidity and involvement of the community in the decentralized project.
A higher APY can be accomplished safely under dual yield farming. Native token inflation is regulated and complemented by the matching rewards of another collaborator token, lenders and liquidity providers may make more sustainable profit over time. By innovating with the Gennix yield farms and combining the strengths of the GEN tokens with other quality projects’ native tokens, Gennix is accessible to a more collaborative and committed community that aims to stimulate users for the longer term and win loyalty. More information on dual farming and future partnerships shall be published occasionally and updated on the Gennix website.
Binary options offer users convenient access to appropriate financial instruments necessary for the success of the project. Gennix’s binary options tool is uncomplicated and features an intuitive UI/UX, allowing the technology to be easy to use and readily accessible to retail investors of all levels.
