Apr 23, 2019 12:00 UTC
Apr 23, 2019 at 12:00 UTC
Nuo Network Becomes Asia’s Largest Lending Protocol
Nuo Network is a non-custodial lending protocol that is backed by ConsenSys Ventures. It has recently cracked the top 5 of USD value locked-in DeFi projects and is, at present, the largest lending protocol based in Asia, as indicated by DeFi Pulse.
The value of loans disbursed through the platform has currently doubled over the past month, that is fueled in part by growth in DAI reserves which are now close to $500,000 and Maker stability fee hikes.
The collateralised lending application at press time offers to borrow in a handful of assets, incorporating, MKR, USDC, ETH, DAI, and wrapped BTC. Also, Nuo recently enabled the ability to margin trade with up to 3x leverage via Uniswap and Kyber pools.
Varun Deshpande, the co-founder of Nuo, told The Block that the recent stability fee hikes of Maker (MKR) had pushed DAI liquidity to the platform since traders seek additional avenues for leverage.
Deshpande noted –
“As the stability fee increases, more users want to Long ETH with 3x leverage by taking higher loans from our reserves. This increases the returns and attracts more lenders on the platform bringing additional DAI liquidity for traders to sell.”
He added –
“What makes Nuo unique is that lenders pool funds in a contract, which directly leads to borrowers or provides margin to trade against Kyber or Uniswap pools. This is the first contract to contract implementation of margin trading and loans across DeFi. This C2C model unlocks massive liquidity and makes all transactions near instant.”
Where Nuo, at press time, offers collateralised cryptocurrency loans as well as margin trading, the team is aimed at providing other debt products like refinancing Maker CDPs and tokenised bonds, amongst others in the future.