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Ola Finance: A Leap Forward in Decentralized Peer-to-Pool Lending
Ola Finance is a Lending-as-a-Service platform that allows anyone to create their own branded lending network at the click of a button. Each Lending Network (LeN) consists of a number of different tokens, determined by the network creator, which can be lent and borrowed.
Ola Finance is not another Compound or Aave. Rather, Ola is a technology provider that enables others to build Compound-like instances governed and controlled by the creator.
Ola's goal is to create an inclusive lending protocol within DeFi where assets can be listed without needing to pass cumbersome and expensive governance schemes or comply with numerous requirements (deep liquidity, high trading volumes, low volatility, etc.). Ola supports all kinds of assets: from early-stage governance tokens to different stablecoins and backed assets, all the way to exotic receipt tokens.
Inclusiveness is achieved via risk isolation. This means that each lending network possesses its own risk profile and if one lending network suffers a heist or a failure, assets in other lending networks are safe and can't be stolen.
Creators: Anybody can launch their own lending network to offer lending and borrowing capabilities to their communities - DAOs, VCs, whales, influencers, etc.
Lenders/Borrowers: Ola Finance is a gateway that offers access to lending networks across numerous blockchains, all from one standardized UI. Ola Finance strives to create a standard for lending/borrowing ERC-20 assets, instead of sorting through different platforms, terminologies, and UXs.
When it comes to lending and borrowing in DeFi, there are numerous options. Regardless of which protocol you choose, each possesses its own set of risks and benefits. Therefore, we have compiled a list of reasons why lenders and borrowers prefer using Ola lending networks:
- 1.Variety of Tokens. Since Ola is inclusive in the assets that can be listed, users can sort through an expanded selection of tokens to lend or borrow.
- 2.Reduced Risk. Ola LeNs are independent, and risk from one LeN does not flow to another. This means that LeN creators can design LeNs with specific risk profiles that they believe will attract the relevant liquidity. Users can then interact only with those LeNs that fit their risk appetites.
- 3.Better Rates for Borrowers and Lenders. We believe that rates in Ola will be more attractive than other lending protocols since Ola facilitates competition. Since anybody can deploy their own lending network on their own terms, users will naturally flow to the best offer. Therefore borrowers will pay less and suppliers will earn more as the LeNs themselves will take a smaller cut from the fees.
- 4.Seamless User Experience. Through Ola Finance, users can navigate through numerous lending networks on different blockchains, all from one location. Each lending network offers a simple user interface that allows anyone to borrow or lend with ease.
In the following sections, you'll learn more about how lending/borrowing works in the world of Decentralized Finance. In addition, you'll learn about the Ola platform and what makes it unique.