🏰For Protocols

Raise Protocol-Managed Liquidity via Capital-Efficient Loans

Use Cases

Bootstrap TVL

Protocol-managed liquidity raised via Copra fixed-interest loans can be allocated as initial bootstrap liquidity when launching new pools or deploying to new chains. This way other LPs (including retail, whales, and institutions) will gain more confidence in depositing to the protocol, initiating a positive growth flywheel.

Leverage Yield Strategies

Since the loan interest cost is fixed, when the loan funds is deployed to the whitelisted pools, protocol borrowers can effectively collect the spread between the fixed-yield loan and whatever yield the whitelisted pools generate. This provides an additional source of revenue for the protocol borrowers.

Alleviate Liquidity Bottlenecks

Some protocols intrinsically have pools lacking in liquidity which can act as bottlenecks to overall protocol growth. Copra helps protocols secure protocol-managed liquidity that could be used to relieve these specific bottlenecks for protocol borrower to achieve its full potential.

Reduce Reliance on Token Emission

Compared to token-based liquidity mining which mainly attracts mercenary capitals that will exploit the token reward and leave immediately once it's exhausted, raising liquidity via fixed-yield Copra vault is an efficient and sustainable alternative to promote protocol growth.

Value Propositions

Fixed Interest Rates

Fixed and pre-determined rates on loan interest provide a predictable cost of liquidity. Any excess yield from performing pool strategies will be attributed to borrower protocols and contribute to protocol income.

Capital Efficient

Unlike overcollateralized lending where protocols would need to deposit an amount greater in value than the loan principal, Copra loan is capital efficient. It only requires deposit that is typically only a single-digit percentage of the loan principal to act as insurance buffer for the loan.

Flexible Liquidity Utilization

The liquidity warehouse whitelists pools that the loan funds can be deployed to. Protocols can re-arrange liquidity freely among those whitelisted pools to maximize loan utility while maintaining the non-custodial nature of the process for lenders.

Plug and Play

Onboarding does not require making changes to the protocol code or additional development work.

Fully Trustless On-Chain

With fully smart-contract-based mechanisms and no off-chain elements (no legal agreement, etc.), Copra loans are suitable for projects with on-chain governance. Moreover, all parties can rest assured that the terms of the deals are enforced in a trustless manner.

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