Next-generation lending with built-in liquidation protection
Curve Lend (also known as Llama Lend) is an innovative lending platform developed by the team behind Curve Finance. Currently operational on Ethereum, Arbitrum, and Fraxtal networks, with Optimism and Sonic preparing to launch their markets soon.
The platform enables users to borrow crvUSD against any supported token or vice versa, while incorporating a sophisticated liquidation protection system. Lenders on the platform earn competitive interest rates on their deposits.
Launched in February 2024 with its user interface released in March, Curve Lend features a unique liquidation mechanism called LLAMMA. This system automatically converts collateral into crvUSD if its value declines and reverts it back if the price recovers, significantly reducing potential losses for borrowers.
For those interested in understanding more about how this innovative liquidation protection mechanism works, detailed technical explanations are available.
Borrowers can easily select a market in the Borrow tab and customize settings such as liquidation steps (N). The platform's intuitive interface makes managing positions straightforward.
To provide liquidity, users simply deposit tokens into ERC-4626 vaults via the Supply tab. As the value of their shares increases, lenders earn yield on their deposited assets. Withdrawing funds is equally simple - users just need to burn their shares to reclaim the original asset.
Each market on Curve Lend operates in isolation, providing additional security and stability to the ecosystem. Notably, new markets can be deployed by anyone with access to a valid oracle, making the platform highly extensible and community-driven.