Could Yamfore answer our crypto-backed loan problems?
There are a lot of exciting things happening in the crypto world, and one of them is the emergence of new lending protocols. We want to share Yamfore's story, a crypto-backed loan lending protocol that is powered by Cardano.
We had the chance to talk with their founder Brandon Chukwuka who is based in Australia and firmly believes in Cardano as a decentralized monetary network that facilitates many critical aspects of society and business. At Yamfore, they focus on utility first, which they believe is the best way to grow and expand.
Risks involved with taking out a crypto-backed loan
Yamfore was created to solve the problem that revolves around taking out a crypto-backed loan. Chukwuka realized that it was very risky to hold a collateralized debt position. This is because you have your money tied up and all of the uncertainty around what happens during margin calls or when interest rates change unexpectedly.
Generally speaking, there could be a couple of other ways to solve the issue of margin calls:
- The first way is by using a loan protocol that allows you to take out a loan without having to put up any collateral. You simply sign a smart contract and send your crypto to the address provided. The protocol then locks up your crypto and issues you a loan in Djed stablecoins. This means that you don't have to worry about the price of your collateral fluctuating, and you can use the loan for whatever you need.
- The second way is by using a protocol that offers insurance on your loan. This means that if the value of your collateral falls below a certain level, the insurance will cover the difference. This protects you from having to put more into your loan and from having your position forcibly liquidated.
Blockchain applications across industries
In his vision for the future of blockchains, Chukwuka believes that the underlying tech has a lot of potential to revolutionize many areas of society. This can be from voting & governance, identity solution, lending borrowing, microfinance, logistics & supply chain tracking, digital art & general tokenization of real-world assets, complicated financial derivatives, insurance, metaverse gaming, and many more.
The Cardano project aims to have high efficiency, scalability, and transparency levels, including accountability with self-governance, which most other blockchains currently don't focus on. In this regard, Yamfore has a lot of potential to grow and become one of the go-to protocols in the space. For now, it is still too early to say anything as they have yet to launch their mainnet product. However, we are confident that they can contribute to Cardano's further development and popularization.
The next steps toward mass adoption
After Vasil hard fork and the introduction of Cardano Improvement Proposals (CIP), Yamfore will launch many aspects of the protocol. This includes the availability of robust oracle solutions for integration that will be running on the mainnet.
"NMKR is a staple name in the Cardano ecosystem and has a well-deserved reputation for providing an excellent suite of tools that help companies, artists, developers, and general blockchain product development," said Brandon Chukwuka, founder of Yamfore. "Yamfore has utilized their NFT minting and payment portal for our NFBO, and it’s been an exceptional experience."
At NMKR, we're excited to see what the future holds for Yamfore and other protocols that are built on Cardano!
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