Overview

What is Liquify L&B?

Liquify L&B is a decentralized lending platform that connects borrowers and lenders through collateralized loans. Think of it as a peer-to-peer lending marketplace where borrowers can secure loans by locking up cryptocurrency as collateral, while lenders earn interest by funding these loans.Key Concept: Borrowers provide collateral (like tokens) to secure their loans, and lenders fund the loans in exchange for interest payments.

How it works (simple overview)

The Loan Process:

1. Borrower Creates Loan → Locks up collateral tokens and sets loan terms

2. Lenders Fund Loan → Contribute USDC to fund the borrower's request

3. Borrower Claims Funds → Receives the raised USDC for their needs

4. Borrower Repays → Pays back the loan with interest

5. Lenders Get Paid → Receive their principal plus interest

What happens if a borrower can't repay?

• The loan gets liquidated

• Lenders receive the borrower's collateral instead

• This protects lenders from losses

Key benefits for borrowers and lenders

For Borrowers:

• No Credit Checks - Your collateral secures the loan

• Flexible Terms - Set your own loan amount, duration, and interest rate

• Quick Access - Get funded in USDC without selling your tokens

• Keep Your Tokens - Repay the loan to get your collateral back

• Partial Funding - Can claim funds even if loan isn't 100% funded

For Lenders:

• Earn Interest - Get paid for funding loans

• Collateral Protection - If borrower defaults, you get their collateral

• Diversify Portfolio - Fund multiple loans to spread risk

• Transparent Terms - See all loan details before funding

• Flexible Investment - Fund any amount, from small to large