Nov 1, 2021
Tranquil Finance is Here!
Overview
Our team is proud to finally announce the mainnet launch of Tranquil Finance! We are the first algorithmic money market protocol on Harmony ONE, allowing users to lend and borrow assets on a decentralized and permissionless platform.
Use Case
Lenders can deposit assets that might otherwise sit idle and earn interest by lending them out. Additionally, the deposits can be used as collateral to borrow other assets.
For example, a user can deposit ONE tokens and borrow USDC stablecoins for spending without selling their ONE tokens. This allows them to take advantage of potential price appreciation of ONE, and not pay taxes triggered by a sale.
Because the protocol is operated through smart contracts, users can lend and borrow with each other permissionlessly, and the Harmony blockchain enables these transactions to be executed very fast and cheap.
Protocol Info
The smart contracts for Tranquil Finance can be found on our Github. The core contract is forked from Benqi (which was in turn forked from Compound) with minimal naming and comment changes. We also adapted the triple slope interest rate model used by CREAM Finance.
At launch, the following assets will be available for lending and borrowing:
- ONE
- 1WBTC
- 1ETH
- 1USDC
- 1USDT
For more details, please visit our docs.
Oracle Stack
TRANQ Token
The TRANQ token entitles the holder to dividends of 75% of all fees generated by the protocol. Dividend distribution is coming soon. Please consult our previous article about the tokenomics.
Sushiswap Liquidity Incentives
To incentivize liquidity for the TRANQ token, we are offering rewards to liquidity providers of the TRANQ / ONE pair on Sushiswap. After adding liquidity, please stake the LP tokens in the Tranquil Finance app.
Liquidation
All borrow positions that exceed the borrow limit of their collateral can be liquidated in order to defend the assets deposited with Tranquil Finance. An 8% (5% to liquidator, 3% to protocol) discount will be applied to the liquidated position, which incentivizes both borrowers to be mindful of their leverage and liquidators to promptly close shortfalls.
Risks
Risks
Although Tranquil Finance is a fork, our smart contract code has not yet been audited. We will complete an audit as soon as possible after launch.
Additionally, exercise caution when borrowing assets and try to maintain a healthy amount of leverage. Your position may be liquidated at a loss if your collateral is not sufficient.
Our contracts are also implemented as upgradable proxies, which we will put behind a timelock shortly after reaching a stable state post-launch.
Please consider these risks before using Tranquil Finance.
