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Earn Network – The DeFi Lending Equivalent to OpenSea is Now Live and Booming
Earn Network, a smart contract-based, open marketplace for connecting liquidity providers and pool creators, has officially launched to fill a void in the DeFi lending sector. The platform aims to provide yield-earning opportunities entirely non-custodial and easy global access to peer-to-peer (P2P) lending. More importantly, it plans to become for decentralized finance what OpenSea is for NFT marketplaces.
Boasting an advanced smart contract infrastructure and innovative tools for the creation of staking solutions, Earn Network has the potential to reshape DeFi lending as we know it.
This Earn Network review looks closely at the project’s features and inner workings. Read on as we reveal its tokenomics, team, and roadmap!
What is Earn Network?
The DeFi peer-to-peer lending sector is playing catch-up with traditional P2P lending, a market projected to reach $700 billion by 2030. Conversely, DeFi’s market size was around $11.96 billion in 2021 and is projected to reach $232.20 billion by the end of 2030.
This enormous gap is difficult to close, despite DeFi’s significant anonymity advantage, which lenders and borrowers can rarely enjoy in traditional P2P lending. Furthermore, DeFi struggles with state influence and regulations preventing the blockchain-based ecosystem from reaching its latent potential.
Earn Network aims to improve long-term forecasts for decentralized finance by providing better lending and staking tools. Ultimately, this liquid marketplace for yield-earning opportunities should accelerate the mainstream adoption of DeFi P2P lending as a globally lucrative environment.
Earn Network’s mission focuses on all the benefits that come from making DeFi more reliable and accessible:
- More people will be learning about the earning possibilities in crypto.
- Higher growth opportunities for businesses seeking access to global financial markets
- Increased diversification of backup assets in DeFi supporting investments like providing liquidity, locked staking, or lending.
- The ability to buy/sell DeFi liquid assets at any time without locked time restrictions
- More power for individuals to manage their portfolios in the emerging Web3 economy compared to the confining terms of traditional finance.
Earn Network focuses on bringing DeFi closer to providing these benefits. To this end, it develops a liquid marketplace for a new, genuinely open, community-driven financial marketplace.
Taking DeFi Earning Opportunities to a New Level
The Earn Network aims to become the go-to DeFi platform for staking and lending products. Its development should truly open global money markets in a non-custodial manner while checking these boxes:
- Easier access to new types of yield-bearing opportunities for crypto enthusiasts
- Prepare the financial marketplace to cater to the regulatory framework standardization
- Improve the synergy between DeFi and the centralized, traditional world
- Enable easy, non-custodial creation of staking solutions, including DeFi farming options and DeFi Pools
- Provide a hub for non-custodial P2P collateralized lending
- Allow DeFi traders to maximize their gains by combining multiple DeFi strategies
Furthermore, Earn Network aims to meet global compliance requirements for its products. Therefore, the verification process for selected pools will include AML and KYC procedures. Lastly, the liquid trading of pool shares and staking should allow traders to enter and exit active positions at any time.
Here is the platform’s take on DeFi staking and lending!
Earn Network helps projects incentivize user participation, increase liquidity, and strengthen the security of their networks. The key features of the platform include:
Customizable Staking Solutions
This feature enables projects to create and manage staking pools bespoke to their specific needs. For instance, they can use Flexible Staking and Locked Staking pools to employ the best-suited staking mechanisms for their growing communities.
A User-Friendly Interface
Earn Network delivers is easy to use thanks to its simple layout and intuitive interface. Users can quickly stake, unstake, and claim rewards as part of a smooth interaction with deployed staking smart contracts.
Decentralized and Self-Custodial
The Earn Network team built the platform’s DeFi Staking solution on decentralized smart contracts, prioritizing transparency and security. Moreover, users maintain complete control over their assets throughout the staking process.
Earn Network plans to issue a pool share token as part of its development. The platform will distribute this token to stakers, thus ensuring an extra layer of rewards and incentives.
DeFi Lending on the Earn Network
Earn Network is building a completely open lending ecosystem and a decentralized marketplace, providing easier terms for borrowers and lenders than the traditional, centralized system.
Borrowers can rely on the platform for quick access to funds instead of dealing with the lengthy processes and complex requirements that centralized finance imposes. This way, businesses and individuals can tap into a global audience and raise capital more efficiently.
Earn Network denominates Borrowers as Pool Creators within its ecosystem. These users can create a Borrower’s Pool after undergoing a verification process (KYC/KYB) provided by an external service (an Oracle).
Next, the platform will mint an NFT comprising the verification outcome and custom user-provided data to link the verification with a given address. Pool creators do not have to provide custom data. However, this information may turn them into more desirable capital receivers for lenders.
Following this process, borrowers can create smart contract pools by specifying details like:
- The name of the loan and its purpose
- The blockchain on which the loan/offer will be deployed
- Currency, yield, aggregation periods, and other details
For now, all parameters of a Borrower’s Pool will be minted directly on-chain and won’t be subject to modifications. However, Earn Network aims to enable users to modify some non-critical data for more flexibility and updates later in the marketplace’s development.
The platform allows borrowers to create repayment conditions by specifying how many repayments will occur during the loan period. Moreover, the Borrower can establish whether the principal will be part of the repayment schedule or only the interest.
Earn Network also enables borrowers to collateralize loans with selected assets. The collateralization ratio will be constantly reviewed to establish its value by the platform’s token stakers.
Lastly, Borrowers can limit the pool’s use only to Verified Lenders. Also, they can pick the loan’s visibility between private and public.
The Earn Network will enable lenders to finally reach a global audience for quick and cost-effective access to capital. In addition, the platform’s solutions will also allow yield hunters (professional DeFi traders) to borrow funds to profit from yield arbitrage opportunities across various ecosystems.
As part of its working mechanisms, Earn Network establishes that the collateral provided by borrowers protects repayments. In this case, borrowers must overcollateralize the pool with allowed assets.
The platform describes Lenders as Liquidity Providers and allows verified and unverified entities to participate in this role.
Liquidity Providers receive a “pool share token” representing a part of the pool share they chose to fund. The token’s value should grow over time since the pool’s interest of the pool will be repaid directly to it. Moreover, the pool’s owner doesn’t have to wait until the end of the loan period if they wish to exit. Instead, they can simply trade their token to receive the native token back from another marketplace user.
The EARN Token
The Earn Network is developing EARN, a token yet to be issued that will serve as the primary utility token in its ecosystem. This token will differ from enTokens (e.g., enMATIC, enAVAX), the share pool tokens supporting extra functions.
The EARN Token will have the following utilities within the Earn Network ecosystem:
- Members will use the token to get verified or to pay platform fees with EARN Tokens.
- EARN stakers can gain rewards in EARN tokens by performing various actions on the marketplace.
- Pool creators will have the option to stake EARN tokens to increase the visibility of their offer.
- Grants & incentives
The fees resulting from EARN transactions will go towards:
- EARN Token Buyback
- Staking Pool
- The Community Fund
- The Treasury and platform development
EARN Token Allocation:
- Seed Round – 20%
- Ecosystem – 20%
- Team – 13%
- Marketing – 10%
- Treasury – 10%
- Liquidity – 8%
- Private Round – 6%
- Reserve – 5%
- Public Round – 4%
- Advisors – 4%
The EARN Referral Program
The Earn Network is part of a larger DeFi initiative comprising MyCointainer – a crypto-earning platform operational since 2018. Developing 8 pre-staking solutions and an industry-leading platform supporting over 100 staking assets helped it onboard 143 projects.
As part of its referral program, projects requiring staking functionalities can deploy a smart contract instantly in the MyCointainer ecosystem, including Earn Network and MyCointainer. In addition, the staking pool can be among the most effective marketing strategies for attracting new investors and buyers. This way, an up-and-coming project can gain traction within the market while helping the Earn ecosystem develop.
The team started building the Earn Network concept, including its infrastructure and whitepaper, in 2022. They spent the last quarter of last year growing a community of supporters and strategic partners around the platform.
In 2023, the developers launched the project’s landing page and social media channels. Also, they launched the platform’s first DeFi pools.
For the rest of 2023, Earn Network aims to reach these objectives:
- Enable pool creation for selected participants
- Continue onboarding new partners/pool creators
- Launch Token and implement token utility on the platform
- Connect a few 3rd party providers with our factor smart contract pool creator
- Enable pool creation for everyone
- Continue onboarding new partners & pool creators
- Integrate the option to enable private pools & verified only users’ pools
- Establish operational processes to build quality around the project
- Get listed on a major exchange
- Establish more partnerships with real-life businesses in emerging markets
- Implement MPC wallets with mobile verification for customers to enhance UX and onboard more users
Earn Network’s mission is to create a renowned and successful marketplace for financial products that can actively contribute to the future of decentralized finance.
Behind the project is a 9-member team of developers, with the core funding team members coming from MyCointainer – a cryptocurrency earning platform with over 4 years of experience in the market.
They aim to increase DeFi earning opportunities by developing a liquid marketplace prioritizing easy access to financial solutions for its growing community.