TLDR Index
TLDR Crypto

TLDR CRYPTO 2023-05-29

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01MARKETS & BUSINESS

02INNOVATION & LAUNCHES

ASTARIA IS A NOVEL NFT-BACKED LENDING PROTOCOL

Astaria, a new NFT-backed lending protocol, prioritizes borrowers by providing immediate liquidity, fixed terms, and eliminating forced liquidations. The platform employs a unique three-actor model (borrower, liquidity provider, and strategist) for NFT-backed lending. Users can borrow from various supported collections, including Moonbirds, Bored Apes, and others. To incentivize participation, liquidity providers depositing 1 ETH into the designated pool will receive an $LSD token that can be redeemed for a piece of physical blotter paper in July.

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03GUIDES & TUTORIALS

BREAKING DOWN CURVE’S LLAMMA INNOVATION

Curve has introduced a novel lending-liquidating algorithm, LLAMMA, that aims to improve the process of liquidation in DeFi lending. Rather than using "hard liquidations", which are common in overcollateralized lending, LLAMMA uses a "soft liquidation" process which gradually liquidates collateral across a price range, potentially mitigating loss for borrowers. How it works is that borrowers deposit collateral into LLAMMA, receive debt in Curve's stablecoin crvUSD, and have collateral spread across bands to create a liquidation range. The protocol relies on oracle prices and arbitrage opportunities to maintain solvency and operate the soft liquidation process.

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04MISCELLANEOUS

The winning bid for Celsius involves creditors owed more than $5,000 becoming shareholders in a new company managed by Farenheit, which includes Celsius' DeFi crypto assets, loan portfolio, PE & VC investments, and mining assets. A small distribution of remaining liquid crypto will also be given. Those owed less than $5000 will receive 70% of their claims and no equity. This arrangement is a compromise as, while the creditors surrender their debt claims against Celsius, they gain a stake in the potentially profitable NewCo. If the NewCo isn’t successful though, creditors’ equity stakes will be wiped out.

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