Automatically earn from idle assets
Last updated
Last updated
As a decentralized financial lending protocol, DEFED allows people to supply or borrow cryptocurrency without going through a centralized intermediary. When they supply, they earn interest; when they borrow, they pay interest.
When a depositor deposits cryptocurrency into the Vault smart contract, the smart contract will mint the corresponding liquidity token, which is named sToken (Saving Token) at DEFED, as proof of deposit for the depositor. The sToken will automatically grow to ensure that the depositor can earn interest income. Another crucial element is the free circulation of sToken.
If you need to deposit cryptocurrency into DeFi Protocol in order to earn interest, and you have to withdraw it when you need to use it. This complicated process adds time and money to the cost, so it can't be called automatic interest earning on idle assets.
Therefore, DEFED provides a solution to ensure that users can use assets without further manipulation (such as withdraw), achieving a true free circulation of assets and earning interest with idle assets.
