PWN allows users to leverage a wide array of tokens as collateral, including ERC-20, NFTs, or even combinations of both. This flexibility ensures that users can secure loans with the assets most valuable to them, without the fear of price-based liquidation thanks to its oracle-less design.
Core Attributes of the PWN Protocol
Flexible and Secure Lending Options
At the heart of PWN's offerings is the ability to engage in fixed-interest loans that provide predictable returns. This is achieved through a protocol that exempts users from the typical risks associated with asset price fluctuations. The primary condition for borrowers is timely repayment; failing which, the collateral can be forfeited.
Enhanced Liquidity and Efficient Capital Use
PWN not only opens up avenues for enhanced liquidity but also allows for significant composability and leverage options in the DeFi space. This ensures that both lenders and borrowers experience optimized capital efficiency, which is a substantial advantage in the decentralized finance ecosystem.
Customizable Loan Terms
PWN stands out by allowing users to set their loan conditions, such as loan-to-value ratios, interest rates, and repayment periods. This level of customization ensures that the terms are perfectly suited to the needs of both borrowers and lenders.
Reduced On-Chain Costs
To minimize transaction costs, PWN enables users to initiate loan requests and offers off-chain. Gas fees are incurred only when these deals are finalized on-chain, which is a cost-effective feature for regular users.
Strategic Financial Management
Borrowing through PWN allows users to maintain exposure to their assets, which can be advantageous, especially if these assets are yield-bearing. This strategy can be more tax-efficient compared to outright selling, depending on regional tax laws.
Oracless lending
PWN differentiates itself by eliminating the need for oracles, thereby protecting users from the volatility and liquidation risks prevalent in other lending platforms.
Bundler
'Bundler' feature also allows users to consolidate various assets into a single collateral bundle, enhancing the flexibility and potential value of loans.
