Understanding HopeLend
A short guide to understand the basics of HopeLend
What is HopeLend?
HopeLend is a decentralized non-custodial lending protocol with multiple liquidity pools. It enables instant loans based on the state of the pool, and loans do not need to be individually matched on both sides; instead, they rely on pooled funds, the amounts borrowed, and their collateral.
How HopeLend works?
The diagram below describes the business flow of HopeLend.
HopeLend Tokenization Model
hTokens (HopeLend Token)
hToken stands for "HopeLend Token."
hTokens are yield-generating tokens minted and burnt upon supply and withdrawal of assets to HopeLend Pool, mapping 1:1 to the underlying assets supplied.
All yield collected by the hTokens' reserves is distributed to hToken holders directly by continuously increasing their wallet balance. The balance of hTokens of every depositor grows over time, driven by the perpetual accrual of interest in deposits.
hTokens are fully ERC20 compliant, which means hTokens can be sent to other addresses, and possessing hToken is equivalent to simultaneously holding ownership and earning rights to the deposited assets. hToken holders have the flexibility to redeem their assets at any time.
dTokens (Debt Token)
dToken stands for Debt Token.
dTokens are interest-accruing tokens that are minted and burned upon borrowing and repayment, representing the debt owed by the token holder. There are 2 types of debt tokens:
Stable-dTokens: represent a debt to the protocol with a stable interest rate.
Variable-dTokens: represent a debt to the protocol with a variable interest rate.
The value of dToken is pegged 1:1 to the value of underlying borrowed assets and represents the current total amount owed to the protocol i.e. principal debt + interest accrued.
Users who provide liquidity or engage in lending activities will receive a share of the interest income and some $LT as a reward for their participation.
dTokens are not transferable.
Interest Rate Model
The rates are determined by the supply and demand relationship in the market. HopeLend's interest rate algorithm is calibrated to manage liquidity risk and optimize utilization.
pageSupply RatepageBorrow RateHow do I interact with HopeLend?
In order to interact with HopeLend, you simply supply your preferred asset and amount. After supplying, you will earn passive income based on the market borrowing demand.
pageSupplying & EarningAdditionally, supplying assets allows you to borrow by using your supplied assets as collateral. Any interest you earn by supplying funds helps offset the interest rate you accumulate by borrowing.
pageBorrowingWhen you borrow, there are a few things you should know about liquidation for the safety of your fund. Please refer to the following doc:
pageLiquidationsHow can I get rewards by participating in HopeLend?
Holders of hTokens and variable-dTokens will receive $LT rewards. Holders of stable-dTokens will not receive rewards under the default configuration.
veLT holders will receive a share of the interest income.
Relevant Contract Addresses
HopeLend's contracts are currently running on Ethereum Mainnet.
pageContractsThe HopeLend Treasury Reserve is a fund held within the HopeLend protocol to address potential risks and adverse events.
pageEnsuring Stability and SecurityWhat can developers do in HopeLend?
If you want to dive more into the details about HopeLend protocols, please refer to the following docs.
pageLearn More about LiquidationspageFlash LoanspageHopeOracleLast updated
