Yamfore is a decentralized, non-custodial lending protocol on Cardano that offers crypto-backed loans with no margin calls, no ongoing interest repayments, and indefinite loan terms.
Yes, Yamfore is a lending protocol that is fundamentally long on the price appreciation of ADA over time. This means that borrowers who deposit ADA collateral with Yamfore are never at risk of liquidation, regardless of the price action in the market. All crypto-backed loans facilitated through Yamfore are directly funded from the protocol's internal stablecoin treasury. This removes many of the counterparty requirements of the lenders, such as ensuring the value of the borrower's collateral never falls below a certain threshold or requiring ongoing interest repayments.
Yamfore operates by collecting a range of fees from all loans generated on the platform. These fees include a CBLP flat fee, accrued interest repayments, and ADA staking rewards. When a borrower closes their loan position, they must pay back the principal amount and any accrued interest. The borrower then receives their deposited ADA collateral back. The collected principal and interest amount are then sent back to the stablecoin treasury to facilitate further borrowing. During the loan term, the protocol remains the recipient of all ADA staking rewards generated by the borrowers deposited ADA collateral.
Individuals who want a simple and completely passive loan position with no margin calls, liquidation risk, ongoing interest repayments, or indefinite loan terms will choose community-backed lending protocols like Yamfore. More risk-tolerant and financially savvy individuals who want a wide range of money markets to borrow, lend, short, long, and the like, will choose other more traditional lending protocols or platforms.