🌐ETH-on-ETH Yield
Last updated
Last updated
Ion Protocol utilizes a lending market design that provides the optionality to isolate each market's risks, allowing lenders to earn higher yields by supplying LSTs to borrowers who collateralize LRTs and other staked/restaked assets. This model mitigates the centralized lending risk associated with pooled lending, offering a more well-defined and secure lending environment. Ion's first market is designed to support the demand for EigenLayer and LRT rewards, promising lenders ETH-based yields for depositing LSTs to lend to borrowers.
Composable Markets: Ion's markets are composable, enabling lenders to tailor their DeFi strategies according to their risk preferences. Unlike traditional pooled lending protocols, Ion allows lenders to focus on specific collateral assets or subgroups of collateral assets, reducing exposure to insolvency risks from other markets.
ZKML Supported Risk Underwriting: Ion employs a validator-based risk analysis approach, leveraging zero-knowledge machine learning to assess the risk of slashing based on validator metrics, enabling off-chain data analysis that's verifiable on-chain for cost-effective complex computations. This assists in facilitating Ion's dynamic interest rate adjustments based on the analyzed risk.
Enhanced Earnings: By supporting LST lending and LRT collateralization, Ion redefines earning for lenders, enabling lender returns to include: Staking Yield + Borrowing Yield + Additional Incentives.
Ion Protocol focuses on maximizing lender exposure to ETH-on-ETH yields and supporting specific demands within the DeFi ecosystem, providing a unique opportunity for stakers to earn more with their LSTs securely and sustainably.
