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AscendEX launched a full-service PORT, helping PORT Finance to open Solana's race to the top in lending

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AscendEX launched its Port Finance (Port) token on August 9 and began trading at 22:00

原文来源：顶峰 AscendEX 研究院

AscendEX announced the launch of its Port Finance (Port) token on August 9 and the start of trading at 22:00, which will help Port Finance further activate the project ecosystem and help it capture the Solana lending market.

What is Port Finance?

Port Finance is a lending agreement built on the Solana chain to launch a full range of fixed-income investment products including variable rate loans, fixed rate loans and interest rate swaps.

Whether it is centralized lending or decentralized lending, since it is a lending agreement, to understand how it works, you can start with the most basic three elements of lending.

1. The depositor

Compared with traditional banks, the reason why users are willing to deposit money is mainly based on two factors: income and security. Rather than save dead money in the hand, it is better to deposit in the bank to collect interest on time to make money. And there are obvious security concerns about keeping cash at the bank rather than just sitting around at home. Of course, this is not to say that money in a bank is 100% safe.

Similarly, in a decentralized loan agreement, revenue and security are the most important factors in attracting users. The Port Finance agreement, which provides additional return on user deposits and cryptocurrency mortgage services, will be able to meet the investment needs of long-term crypto holders who are seeking additional return, as well as high-risk investment preferences seeking leveraged trades.

In terms of security, the user's assets in the Port Finance decentralized loan agreement are hosted ina smart contract. Port Finance protocol is built based on Solana chain, the underlying basic security is sufficient, and its core lending procedures and liquidity mining procedures have been replaced by & NBSP; Bramah Systems completed the audit and has commissioned Kudelski to conduct a second audit. Contract code is open source, transparent, intelligent and efficient, and can effectively reduce human error in central lending (such as banking).

2. The lender

At the level of the lender, it is necessary to understand the mortgage function, borrowing ability, borrowing interest rate and liquidation model of the loan agreement, which correspond to the four aspects that the lender is most concerned about: whether the mortgage is needed, how much money can be borrowed, how much money to pay back and the liquidation risk in the repayment process.

In the Port Finance protocol, the formula of user borrowing ability is as follows:

The amount the user borrows is equal to the total amount of collateral multiplied by the mortgage rate. The total amount of collateral will depend on the price of the cryptocurrency pledged by the user and the amount pledged. Different cryptocurrencies have different mortgage rates. Specifically, the mortgage rate is related to the price volatility and capital liquidity of the mortgage currency. Generally speaking, the mortgage rate of the currency with low volatility and high liquidity will be relatively higher, whereas the mortgage rate of the currency with high volatility and low liquidity will be relatively smaller. In layman's terms, more money can be lent against high-quality currencies.

Port Finance protocol interest rate model:

(R0= initial interest rate, Roptimal= optimal interest rate, Rmax= maximum interest rate)

The borrowing interest rate of Port Finance is a variable interest rate, which is linked to the utilization rate of currency funds [capital utilization rate = total amount of loans/(total amount of loans + available liquidity)], that is, the higher the utilization rate of funds is, the higher the deposit interest rate is; conversely, the lower the utilization rate of funds is, the lower the borrowing interest rate is.

Port Finance protocol settlement formula:

The Port Finance protocol loan clearing threshold will vary based on the cryptocurrency volatility and liquidity of the mortgage. Once the risk factor reaches or exceeds 100%, the user loan will be cleared, but it should be noted here that according to the official white paper, The loan settlement threshold of Port Finance protocol (111%-105%) is significantly lower than that of Ether Ecology's Compound (133%) and Aave (120%). At the same time, the system will provide a higher proportion of the liquidation bonus to the liquidator.

3. The Port Finance platform

In terms of the three elements of borrowing the concrete platform, despite the lending agreement in deposit rates, borrowing rates model selection design of different (various models are essentially agreements balance between the interests of depositors and borrowers), the user needs to focus on the platform of fees, because the poundage means that the user transaction costs. The Port Finance platform charges a standard fee of 0.1% of the total amount of deposit and loan, which is significantly lower than the mainstream lending agreements on the Ethereum chain, Compound and Aave. See the following figure for details:

Three big lending markets

Variable rate loans

The lending protocol market is similar to the Compound protocol on Ethereum. There are three core traits:

1. The agreed interest rate is a variable interest rate based on utilization, that is, the interest rate increases with the increase of utilization, and vice versa.

2. Cross-collateralized support, that is, loan packages that support multiple collateralized crypto assets. In layman's terms, it allows users to use the collateral of one loan to open another loan.

3. Flash lending is supported, allowing users to conduct risk-free arbitrage between Serum markets or between Serum and Raydium.

Building on the Solana chain means you can take advantage of its high processing speed, scalability and other qualities compared to the current state of the Ethereum chain. Port Finance will have a huge advantage in lending and clearing.

2. Fixed rate lending market based on the order book on the Serum chain

Initially, Port Finance will offer a seven-day lending market. Thereafter, the period can be extended to 14 days, 21 days, and so on. Port Finance will also introduce ptokens, one-to-one derivative tokens based on loans to the user base. PToken and base Token will also open up a specialized market, such as: USDC/pUSDC, SOL/pSOL, ETH/pETH, etc. The specific process is as follows: If the user wants to lend SOL, it will deposit collateral and generate pSOL at a certain rate. That is, the user can sell assets in the corresponding market to obtain the corresponding pToken. After the loan expires, the user can redeem the pToken as the basic Token.

In this model, through separate Ptokens, there is no need to record the loan amount and term for each lending pair (borrower and lender combination), while also providing assignability and composability of loan ownership.

3. Interest rate swap market based on the order book on the Serum chain

Ultimately, Port Finance will use the Serum matching engine to create an interest rate swap market between fixed and floating rates. Essentially, savers in the fixed-rate lending market want the highest possible interest rate, as long as they can guarantee a higher yield; Savers in the variable rate market want lower rates, so they can get higher yields when the variable rate exceeds the fixed rate. Based on this, the Port Finance interest rate swap market will match more diverse investment needs of users in different markets.

Why should Port Finance be expected?

1. Solana chain + & have spent Serum ecology helps Port Finance consolidate underlying performance

Solana chain is one of the most unique and promising public chains in the current blockchain industry. High performance, low latency and low transaction costs have become the best synonym for Solana chain, making it a strong competitor to Ethereum. TPS, which is much higher than the Ethereum chain, allows Solana to support a large number of business requests simultaneously, making it unnecessary for Ethereum to limit user transaction requests by raising Gas fees. Solana's high scalability will greatly increase the speed of transaction confirmation, and the higher speed will enable Port Finance to perform clearing more efficiently. This capability also means that the mortgage rate requirements of Port Finance will be lower than that of other mainstream lending platforms. By participating in Port Finance, users can borrow more money with less collateral.

Solana adopts the parallel programming model and does not directly support EVM virtual machine. While realizing stateless transaction execution and greatly improving the parallel processing capability of transactions, it also forms certain obstacles to the cross-chain transplantation of related projects on Ethereum, plus high development threshold. It also plays a significant role in blocking some poor quality projects and maintaining the sound ecological development of Solana as a whole.

Meanwhile, Solana's DEX project Serum, the ecological leader on the chain, has built its own ecosystem based on the classic order book and AMM model. The Raydium protocol for AMM liquidity adds more possibilities for building more complex financial products. In addition, Solana DeFi Ecology now has the scale to form a number of subdivisions, and as one of the earliest lending agreements in the Solana chain, It will be easier for Port Finance to work with other protocols to build more diverse products.

2. Port Finance advantages

1. Compare other decentralized lending protocols in the Ethereum chain ecosystem. Port Finance has set lower collateral requirements and clearing thresholds for the same type of crypto assets. This for ordinary users, to a certain extent, the entrance threshold is reduced, small volume of funds can also realize earnings. Port Finance has built a custom clearing robot, which will be able to perform clearing more efficiently and accurately with the help of Solana chain performance. A lower clearance threshold would also reduce risk for users.

2. We plan to directly integrate Serum platform to achieve leveraged transactions. Port Finance will directly integrate the Serum chain order book to build the fixed rate market and swap rate market. In the future, Port Finance also plans to integrate with Raydium AMM to enable one-click leveraged trading and triple long or short Solana positions. In addition, inter-agreement loans will allow Yield Farming to leverage.

3. Set the concept of sub-account, allowing users to divide a single address into different sub-accounts according to risks. In other words, eggs are not put in the same basket. This will effectively reduce user loan risks and improve user experience.

4. Yet the ecology of the Solana chain is beginning to take shape. Only in the loan agreement track, there have been many protocols layout, but compared with the Ethereum ecology, Solana chain has not appeared at present, such as Compound, Aave and other representative leading projects. As one of the earliest lending agreements in the Solana chain, Port Finance has been one step ahead of other lending agreements to be launched on the main network, which will greatly fill the early ecological gaps of Solana and expand the user base by taking advantage of Solana's active ecology. The current Port Finance mainnet version is working well and the team is gathering user feedback to improve the product. The governance token PORT online peak AscendEX, will further activate the project ecology, boost PORT Finance in the Solana lending plate leading competition.

Teams and tokens

1. The team

Port Finance has three co-founders, all of whom have backgrounds in technology development and have worked at large tech companies such as Google, Facebook, and Microsoft. In addition, the founding team has worked for &NBSP; Contributions to the open source code of Solana and Serum.

2. Token allocation

The Port Finance platform governance token is Port. The Holding PORT will be able to participate in determining the parameters of the agreement, including supported mortgage asset classes, liquidation thresholds, and other changes related to the agreement. In addition, after participating in the pledge, PORT will also be able to share the transaction fees of agreement loan and flash loan. The allocation of tokens is as follows:

Ecosystems: 33%

Liquidity incentive: 31%

Team: 20%

Fundraising: 10% (Seed round: 6%, Private round: 3.6%, IDO: 0.4%)

Initial liquidity: 4%

Consultant: 2%