Everything and anything you need to know about Pinjam, answered!
What is Pinjam?
Pinjam is a decentralized lending protocol that fixes low DeFi lending yields with 100% capital productivity. Pinjam is currently only available on Avalanche - but we will be expanding to other chains in the near future.
How does Pinjam achieve 100% capital productivity for lenders?
Pinjam does this by aggregating unborrowed funds to battle-tested protocols such as AAVE & BENQI to generate more yield for lenders - on top of the yield generated by borrowing activity on Pinjam.
Does that mean Pinjam is AAVE's competitor?
In fact, we complement each other. Since unborrowed Pinjam liquidity will be directed to AAVE, this will mean that lenders get the best of both worlds - lending APY on Pinjam for their borrowed liquidity AND lending APY on AAVE for the liquidity that's not borrowed on Pinjam.
When Pinjam grows, AAVE grows.
When AAVE grows, Pinjam grows.
Anything unique that I should take note on Pinjam?
With Pinjam's approach of 100% capital productivity, this leads to lenders earning yield from two sources: 1. The interest from their liquidity that's being borrowed on Pinjam 2. Unborrowed liquidity that are earning yield on our integrated protocols
When this happens, Pinjam's lending APY can be HIGHER than its borrowing APY. To put it short, you can be PAID to BORROW.
This is because the interest you've paid for borrowing assets is covered when you lend out those same assets on Pinjam - where you will in fact, EARN on the assets you lend.
This is happening without any token incentives - imagine the rates when we do!
Other than that, there are also deposit INCENTIVES.
To help maintain our goal of achieving 100% capital productivity, we need to ensure that idle funds are constantly being put to work.
To achieve this we will be incentivizing depositors to help put idle liquidity to work and receive back the asset in exchange, essentially getting paid to deposit!
Is there a Pinjam token? Is there an airdrop?
What's unique about what we're doing at Pinjam is that we have chain-specific tokens - right now, we are in the midst of launching our $PINKAV token - the Pinjam token on the KAVA network.
We will be conducting a $PINKAV airdrop program as well.
What are Pinjam's future plans?
We can't reveal too much - so our only answer to this is to refer to the Pinjam Masterplan section and stay tuned for updates on our Discord and Twitter!
How do I use Pinjam?
You can refer to the Pinjam UI navigation here and Pinjam's basic functions here.
How do you decide which protocols should be integrated on Pinjam?
We look into the past history of the protocol - whether it has been hacked or exploited. Regarding this, we also look into whether they've been audited, when was their last audit, and the reputation of the smart contract audit firms used.
Next, we look into how recently the protocol has been in existence and its past performance and reliability to provide stable and consistent yield.
We also look into the protocols they have integrated as well as the code structure of these protocols to ensure that they're well-equipped for attacks.
Is Pinjam audited?
Pinjam is not yet audited. Upon receiving enough funds (from third-party investments or fees generated), the team will look to get Pinjam's code immediately audited.
I want to share about Pinjam. Any socials or reading materials?
Follow us on Twitter and join us on Discord. If you're keen to get into the details, you can check out this documentation you're reading now, our whitepaper, and also our Medium articles.