Nolus Protocol, a Web3 financial suite built on a fast Layer-1 blockchain using Cosmos SDK, is set to transform the DeFi landscape with its innovative DeFi Lease solution.
By offering users up to 150% financing on their initial investment while allowing them to retain ownership of their digital assets, Nolus aims to bridge the gap between traditional finance and DeFi, providing a seamless, user-friendly experience for both lenders and borrowers.
Quick Verdict: Nolus Protocol is a Web3 financial suite that offers an innovative approach to money markets with a novel DeFi Lease solution aimed at developing the DeFi space further.
Summary
- Nolus utilizes a fast Layer-1 blockchain built with Cosmos SDK. It is decentralized, censorship-resistant, with low transaction costs and no custody over users’ funds.
- The Nolus DeFi Lease provides up to 150% financing on the initial investment, where the user retains ownership of the digital asset. It has lower margin calls, total costs, and an intuitive UI compared to alternatives.
- The DeFi Lease is a money market between lenders earning yield on stablecoins and borrowers looking to borrow more digital assets than their equity. Borrowers provide a down payment as collateral.
- Nolus aims to merge boundaries between TradFi and DeFi, offering asset management features like swapping, earning yield, staking, and the DeFi Lease financing product.
- The protocol incentivizes usage of the native NLS token which grants benefits like reduced interest rates on leases. NLS is also used for governance, transaction fees and rewarding lenders.
- The protocol generates revenue through interest on leases, swap spreads and transaction fees which are used to buy back NLS tokens.
- Nolus targets both new crypto entrants and existing holders, as well as institutions looking to diversify into digital assets. The addressable market is projected to reach $5.2 trillion by 2026.
What Makes Nolus Special?
Nolus is leading with education so that DeFi is never inaccessible. It additionally demystifies DeFi by showing how compelling DeFi projects are when presented in detail. In this way, such possibilities are accessible to many through comprehensive instructional materials and streamlined UX.
Several problems restrict the practical viability of potential growth in financing through cryptos. Many people don’t even understand what staking is. So education is important.
Consumers require a higher quantity of crypto provided as a guarantee compared to the amount they need to borrow. This will restrict both centralized and decentralized lenders from potential loss in capital if at all the value of the token structured in the collateral security falls substantially.
Financing amounts across platforms usually vary from 50%-60% of the value of the placed collateral.
Nolus, the DeFi protocol built on Cosmos and accelerated in its genesis with funding from the project, is also part of the Cointelegraph Accelerator after raising $2.5 million in seed and pre-seed capital for its mission of enabling frictionless crypto lending for the masses.
It features the just-released Nolus Protocol for DeFi Lease. On the one hand, DeFi Lease allows the customer to take out a loan up to 150% against his principal and collateral, compared to these traditional crypto lending services. Nevertheless, the customer can still claim the right to the asset.
Web3 will let customers borrow in digital more of the asset they actually want than their current equity position, without any hassle over hard-to-understand structures on loan fees, onerous small print, or technical formulae on how they’re charged. Considering the general fees being expensive to finance, the general fees per transaction are kept very low.
A Traditional Lease vs A DeFi Lease
Nolus makes sure that leasing does little to maximize anonymity and remove bureaucracy. Traditional financial leases, on the other hand, have clients go through very rigorous processes of financial screening, while DeFi leases could be done anonymously, with only the digital wallet being the interface that identifies an individual.
This will be one of the modes that shall ease and open doors for the unbanked to share in accessing leasing options without necessarily giving up some personal information about their financial past.
Dealing with these issues for people who are new to the information and to the use of DeFi applications over platforms like Nolus is a frictionless, absolutely unproblematic experience. This is a very favorable comparison with the traditionally heavy seriousness of agreements and requirements in traditional centralized finance systems.
Nolus Financials also gives finance of as much as 150% of the down payment. In most traditional finance, these liquidation rates choke people, meaning they may lose everything.
Comparatively, Nolus has a liquidation rate lower by 40% of the market average. Also, Nolus introduces novel innovative ways for down payments by staking its native Nolus token in the bid to make the DeFi lease rather than the popular norm lease.
With this path towards open and efficient financial landscapes, more people will love DeFi. People can rethink how lending and finance work in the digital age.
People will be attracted to DeFi as they become more comfortable with cryptos. The use of cryptocurrency globally is still low, so there is a lot of room for growth.
Read: Understanding the Nolus DeFi Lease.
Regulatory and Compliance
The major challenges for DeFi lie with compliance and legal, as this is such a semi-anonymous area. Many governments are looking for ways to make regulations work in the DeFi space. With these opportunities growing, there is a lot of room for companies that want to work within the system.
Nolus is developing the first legal and compliance framework for DeFi protocols, supporting full integrations of these processes in ensuring the privacy of end-users. Regulatory bodies work with Nolus to ensure the development of a compliant and transparent DeFi ecosystem.
Among the innovative features in Nolus that have been integrated into the platform are 150% funding on the initial investment, reduction of the margin call risk, uplifting the service experience of leveraged investors, and an approach to target the liquidity inefficiency.
The Nolus Business Model
Nolus is building an innovative alternative to over-collateralization with its flexible funding model, which is characteristic of traditional financial leasing products. It is constructed with the use of Cosmos SDK and the CosmWasm Smart Contract Engine to provide a lease that is semi-permissioned PoS blockchain, to encourage interoperability and efficiency in capital markets.
Nolus offers many available sources of liquidity across different blockchain networks to cushion its users during market downtimes.
Core developments under the Nolus Protocol will involve adding and supporting Liquid Staking Derivatives (LSDs), as well as adding a self-paying loan system in-line as the first major use for LSDs in the Cosmos ecosystem.
The ultimate beneficial owners will earn interest on their deposits with some added earning exposure, subject to less risk in their portfolio at the time of maturity; lenders will leverage their portfolio with more assets than the equity they have and will end up owning most of the equity but still have access to some other simplified features of the platform.
Most important to Nolus of all these, however, is the fact that through Interchain Accounts and Inter-Blockchain Communication (IBC), it can help its users access several liquidity hubs without leading to a fragmented chain.
Nolus Mints to Lirio is a special advisory board that will pull together some of the ecosystem’s most prominent figures led by Shane Molidor, Zaki Manian, and Strangelove.
Notable Achievements
The fundraising aside, after several months in private testing, Nolus launched the public mainnet last year in May, ushering in the beginning of an extensive period of network mission polish, making quality refinements and developments in the DeFi space.
- The Nolus (NLS) token forms the base of the Nolus Ecosystem, It empowers the network through transaction fees from securing and governing the environment well for transactions, actively rewarding validators and delegators who take part in processes.
- Within 4 months, Nolus landed a TVL worth $3 million and processed transactions to the period of $6 million, 2500 DeFi leasing positions came into existence.
- Since Nolus is working to become an all-inclusive margin protocol, it will further go on to make it a piece of cake to understand the technical details that simplify DeFi for non-crypto users.
Conclusion
As the DeFi space continues to grow and mature, Nolus Protocol is well-positioned to lead the charge in revolutionizing money markets with its innovative DeFi Lease solution.
By offering a user-friendly, cost-effective, and intuitive platform that caters to both new entrants and existing crypto holders, Nolus is bridging the gap between traditional finance and DeFi, making it more accessible to a wider audience.
The protocol’s unique approach to financing, combined with its native NLS token’s utility and governance features, creates a compelling ecosystem that incentivizes participation and growth.
With a projected addressable market of $5.2 trillion by 2026, Nolus Protocol is poised to capture a significant share of the DeFi lending space, ultimately reshaping the future of decentralized finance.
