Yamfore
Search…
⌃K
❓

Frequently Asked Questions

Can you give me a quick summary of Yamfore?

Yamfore is a decentralised non-custodial lending protocol on Cardano. Yamfore is the first community backed lending protocol, providing stress-free “set & forget” crypto-backed loans for anyone & everyone. Yamfore differentiates itself by offering crypto-backed loans with no margin calls or ongoing interest payments and indefinite loan terms.

How does it work exactly, who would fund the protocol with such favourable terms?

The Yamfore protocol is funded through two methods. The first method is the collection of staking rewards earned from the deposited ADA collateral of all borrowers in the protocol. These staking rewards are then exchanged to stablecoins and resupplied to the protocols stablecoin treasury.
The second method is through the liquidity treasury, which contains 50% (500 million) of the total fixed supply of the native governance and utility token of the protocol, $CBLP. The liquidity treasury enables individuals to provide liquidity to Yamfore via depositing their ADA into the protocols staking portal. This allows individuals to forfeit their usual ADA staking rewards, in return for an allocation of $CBLP tokens distributed, and redeemableon a per epoch basis.

Are there really no margin calls, interest repayments and indefinite loan terms?

Yes, the Yamfore protocol is fundamentally long on the price appreciation of ADA over time, so the borrowers deposited ADA collateral never gets liquidated, regardless of the price action in the market. All crypto-backed loans facilitated through Yamfore are directly funded from the protocols 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 etc. Yamfore simply operates by collecting the staking rewards of the borrowers deposited ADA collateral in the protocol. All staking rewards earned from the borrower’s deposited ADA collateral is collected as payment for their loan position, with no further payment obligations.

How does borrowing work on Yamfore?

To acquire a loan, a user must first provide ADA as the collateral to borrow against. The users deposited ADA collateral will also require a corresponding amount of $CBLP tokens deposited alongside it. This ADA / CBLP ratio will be dictated by on-chain governance amongst $CBLP token holders. The loan amount a user wishes to borrow is always proportional to the value of their deposited ADA collateral, since the protocol only gives back a 1:1 value exchange for any deposited ADA collateral. The $CBLP tokens deposited alongside the borrowers ADA collateral simply act as a security deposit for establishing a loan position, and are ALWAYS returned in their entirety to the borrower on closure of their loan position.
The Yamfore protocol simply operates by collecting the earned staking rewards of the deposited ADA collateral of all borrowers in the protocol. All staking rewards earned from the deposited ADA collateral of borrowers during their loan term are collected as payment by the protocol with no other / further payment obligations.
During a loan term, the borrower is never subjected to any margin calls or ongoing interest repayments, and maintains an indefinite loan term. The borrower is able to close their loan position at any time, pending the value of their deposited ADA collateral is equal to or above 110% of the borrowed principal amount. If a borrower wants to exit their loan position early and redeem their deposited $CBLP tokens, but their deposited ADA collateral isn’t at or above the required level. The borrower can choose to pay the owed deficit of their ADA collateral to close their loan position immediately, and redeem their deposited $CBLP tokens.

Ok sounds great so far, but what are the risks involved?

The main risk for borrowers taking a crypto-backed loan through Yamfore, comes from over exposure to the native utility & governance token of the protocol, $CBLP. The $CBLP token is inherently riskier than ADA due to its relatively limited use case and smaller market capitalisation. Ideally any user taking out a crypto-backed loan against their ADA would prefer the majority, if not, all of their deposited collateral remains denominated in ADA. Although the borrowers deposited $CBLP tokens are ALWAYS returned in their entirety, on closure of a loan position. The market value of a borrowers deposited $CBLP tokens can vary greatly from the start of their loan term to the end of it. The Yamfore protocol is only concerned with ensuring the value of the borrowers deposited ADA collateral is of sufficient value before allowing a borrower to close their loan position and redeem their $CBLP tokens. It is entirely possible for a borrower to close their loan position and be in profit on their deposited ADA collateral whilst neutral / down in price on their deposited $CBLP collateral.

Who is the team working on Yamfore?

Will Yamfore be audited before launch?

Yes, we believe transparency and accountability are essential aspects of building any worthwhile projects. Yamfore will go through external auditing before mainnet launch and will be completely opensourced to the community later on. You can keep an eye out on our official Audit page to keep up to date with any code reviews.​

When will Yamfore launch?

Where can I find out more about Yamfore?