๐Ÿ“ˆMultiplying Rewards

Benefiting As A Borrower

One of Ion Protocol's most compelling initial use cases is its ability to enable capital efficient leveraged staking and restaking. From the beginning, borrowers in Ion Protocol will be able to collateralize their LRTs and multiply their exposure to their underlying collateral's yield and points. By removing price volatility from the equation for borrowers through the use of staking-specific underwriting, the major risks associated with compounding rewards are reduced, making it safer and cheaper for borrowers to increase their exposure to their collateral.

Key Features

  • Flash Leverage: Creates a leveraged borrowing position or deleverages a position in one-step process instead of requiring manual recursive transactions.

  • Interest Rates: Interest rates within Ion are parameterized via collateral type, providing each collateral asset a uniquely parameterized interest rate model. These interest rates are additionally reflexive to the yield of the underlying asset being used as collateral to minimize cost variability for borrower.

  • ZK Proof of Reserve: Ion quantifies the creditworthiness of a collateral asset by internalizing the solvency of the asset by viewing the underlying validator reserves of the asset instead of depending on price oracles or AMM counterparty liquidity to facilitate pricinThis methodology removes volatility and price depegging as risk factors for borrowers.

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