In addition to well-known DeFi lending solutions and their forks in various ecosystems, our competitors include CeFi money markets. Since we want to reach not only seasoned DeFi users but also individuals and organizations with little to no DeFi expertise, we compete with CeFi lending solutions on that front.
Most of the current money market solutions provide over-collateralized loans and expose users to a high risk of liquidation. Futures contracts on centralized exchanges do not grant ownership over the asset, lack transparency, and are subject to censorship. The Nolus Protocol combines the best of DeFi and CeFi money markets and seeks to address the inefficiencies outlined above:
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- Financing up to 150% on the initial investment, thereby reducing the level of collateralization by a factor of 3;
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- 40% lower liquidation rates compared to the market average;
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- Ownership of the underlying assets – the smart contract which holds the assets is associated with the leaser;
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- Flexibility to take advantage of certain self-repayment loan mechanisms through liquid staking;
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- Easy-to-use UI and simplified processes.