Yamfore
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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. The staking rewards are then exchanged to stablecoins and resupplied to the stablecoin treasury. The second method is the sale / exchange of the native governance and utility token of the protocol, $CBLP to stablecoins by the liquidity treasury of the protocol during over heated market circumstances.

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 users deposited ADA collateral never gets liquidated regardless of the price action in the market. The Yamfore protocol 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 with no further payment obligations. 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.

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

The main risk for borrowers wanting to take a crypto-backed loan through Yamfore, comes from the exposure to the native utility & governance token of the protocol, $CBLP. Depending on supply & demand, the required ADA / CBLP lending ratio could be quite high. 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 full on closure of their 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?

The team is made up of a small group of freelance programmers largely based in Adelaide, Australia.

Will Yamfore be open-sourced and audited before launch?

Yes, we believe transparency and accountability are essential aspects of building any worthwhile projects. Yamfore will be open-sourced and made available to the community after external auditing and before mainnet launch.

When will Yamfore launch?

Where can I find out more about Yamfore?

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Can you give me a quick summary of Yamfore?
How does it work exactly, who would fund the protocol with such favourable terms?
Are there really no margin calls, interest repayments and indefinite loan terms?
Ok sounds great so far, but what are the risks involved?
Who is the team working on Yamfore?
Will Yamfore be open-sourced and audited before launch?
When will Yamfore launch?
Where can I find out more about Yamfore?