Yamfore is a non-custodial lending protocol on Cardano. Yamfore differentiates itself by offering crypto-backed loans with no margin calls or ongoing interest repayments and indefinite loan terms. Yamfore is the first community backed lending protocol, providing stress-free “set & forget” crypto-backed loans for anyone, and everyone.
The Yamfore protocol is funded through two methods. The first method is the collection of staking rewards earned from the deposited ADA collateral of all borrowers in the protocol. These staking rewards are then exchanged to stablecoins and used by the protocol to resupply to the stablecoin treasury. The second method is the sale / exchange of the native governance and utility token, $CBLP, to stablecoins by the protocols liquidity treasury.
Yes, the Yamfore protocol is fundamentally long on the price appreciation of ADA over time so the users deposited ADA collateral never gets liquidated regardless of the price action in the market. The Yamfore protocol simply operates by collecting the earned staking rewards of the borrowers deposited ADA collateral with no further payment obligations.
The main risk for borrowers taking crypto-backed loans through Yamfore, comes from their exposure to the native utility & governance
token of the protocol, $CBLP. Depending on supply & demand, the required ADA / CBLP lending ratio could be quite high. The $CBLP token
is inherently riskier than ADA due to its relatively limited use case and smaller market capitalisation. Ideally any user taking out a
crypto-backed loan against their ADA would prefer the majority, if not, all of their deposited collateral remains denominated in
Although the borrowers $CBLP tokens are ALWAYS returned in full on closure of their loan position. The market value of a borrowers deposited $CBLP tokens can vary greatly from the start of their loan term, to the end of it. The Yamfore protocol is only concerned with ensuring the value of the borrowers deposited ADA collateral is of sufficient value before allowing a borrower to close their loan position and redeem their deposited $CBLP tokens. It is entirely possible for a borrower to close their loan position and be in profit on their deposited ADA collateral, whilst neutral / down in price on their deposited $CBLP collateral.
Yes, we believe transparency and accountability are essential aspects of building any worthwhile projects. The Yamfore protocol will be open-sourced and available to the community after external auditing and before mainnet launch.