Discovering Atlendis Protocol: Rollover Functionality
Series of educational articles on the Atlendis Protocol - Part 3
Welcome back to our educational series on the Atlendis Protocol! In this third installment, we will be shedding light on one of the new components of the Atlendis protocol – the rollover functionality. This blog article aims to provide you with a comprehensive understanding of how the rollover functionality works and why it is a game-changer for our users.
What is Atlendis RCL and the Rollover Functionality?
Atlendis RCL loans are essentially fixed-term loans that come with a unique twist – the Rollover functionality. When borrowers repay their loan in an Atlendis RCL pool, they have the option to immediately start a new cycle, thanks to the embedded rollover function. This feature allows borrowers to chain loans.
Benefits for Borrowers
One of the primary benefits for borrowers using the Rollover functionality is enhanced flexibility. Depending on their liquidity needs, borrowers can rollover their loan to better align with their specific use case. This flexibility allows them to adapt their financial strategy in real-time.
Building an On-Chain Credit History
Having a robust on-chain credit history is crucial for borrowers when they want to borrow funds. The Rollover functionality enables borrowers to build a credit history onchain, increasing their credibility and attractiveness to potential lenders.
Borrowers also benefit from the ability to secure rollover terms, thanks to a relatively short freeze period pre-maturity. This feature helps prevent withdrawals momentarily and provides visibility to borrowers regarding their next loan terms, contributing to the overall stability and efficiency of the Atlendis ecosystem.
Benefits for Lenders
Lenders can enjoy continuous interest on their funds as they're borrowed for multiple cycles. This eliminates the need to constantly search for new lending opportunities. Liquidity providers who wish to continue lending for another cycle don't need to take any action, making it a hassle-free experience for lenders.
Flexibility to Stay or Opt-Out
Lenders have complete flexibility when choosing to stay in the pool for multiple borrow cycles. They can also decide to signal their willingness to exit the pool for the next loan using the Opt-out option, allowing them to adapt to changing market conditions and their own preferences.
Predictability in Asset Locking Time and Interest Earnings
The fixed maturity of Atlendis RCL loans provides predictability in asset locking time and interest earnings. This stability is a valuable feature for lenders who want to plan their investments and manage risk more effectively.
The Rollover functionality in Atlendis RCL products offers a unique and powerful way for both borrowers and lenders to optimize their financial strategies. It provides enhanced flexibility for borrowers and continuous interest opportunities for lenders, making it a win-win for all participants in the Atlendis ecosystem. In our next article, we'll explore why positions in Atlendis are represented as NFTs and what this means for lenders. Stay tuned for more insights into the innovative world of Atlendis.