# Welcome to Pinjam Understand the Pinjam (Pronounced: Pin Jump) Protocol and what we are doing! Liquidity Concentration & Efficiency is all the rage in the DEX space, but little to none of that discussion is happening in the DeFi Lending space. In fact, the biggest sinner of wasted liquidity is the traditional Pooled Lending model pioneered by Aave & Compound, with over 70% of liquidity sitting idly and not being productive. **Pinjam is the latest innovation for capital efficiency in lending protocols** -- whose sole focus is on achieving 100% capital productivity. \ \ This is achieved by combining **Pooled** and **Protocol-to-Protocol** on a single platform. The Pinjam protocol will take underutilized funds and lend it out to base layer protocols like Aave or low impermanent loss AMMs such as Curve. This ensures the lender's capital is at maximum productivity with minimal risk on blue-chip, battle-tested protocols. We've taken the best innovations of base lending protocols, auto-compounders, and smart contract innovation combined them into, Pinjam. Here's what we are trying to solve: ### Problem 1: Low Lending Yields Current base lending protocols such as Aave provide yield to their lenders by lending money to the same users. The amount of yield provided depends on how much funds are being borrowed. The more funds being borrowed, the higher lenders earn. Take the following asset pool for example. **Scenario 1:** ``` Total Supply: 1000 Total Borrowed: 100 Interest Earned by Lenders: 0.5% ``` **Scenario 2:** ``` Total Supply: 1000 Total Borrowed: 600 Interest Earned by Lenders: 2.5% ``` In short, the more funds being borrowed, the higher the interest rate for lenders. The lesser the funds being borrowed, the lower the interest rate for lenders. Herein lies the problem. During times of low borrowing demand, there will be more idle liquidity as the majority of funds remain in the smart contract not being productive and providing low yields to lenders. **Pinjam will consistently provide a stable source of yield to lenders even during low borrowing demand.** This also means users of Pinjam can **expect higher yield** compared to base lending protocols since users will be earning **both borrowing & farming yield**. ### Problem 2: Over-Collateralization
Major lending protocols today are over-collateralized protocols, which means if a user deposits $100, they can only borrow up to a maximum of $70 - so there will always be $30 sitting in the pool being unproductive, earning zero yields for the lender. Pinjam fixes this by putting that idle $30 to work on base-layer lending protocols such as AAVE, earning higher yields for lenders and maintaining 100% capital productivity. In that sense, we are not competing with AAVE but instead, being complementary to one another. When lending on Pinjam, you experience 100% capital productivity (no idle liquidity) + AAVE's lending benefits for your unused funds.\ \ When Pinjam grows, AAVE grows. When AAVE grows, Pinjam grows.
# Protocol-to-Protocol Lending Pinjam: The Primary Source of Liquidity for all of DeFi ### Liquidity Blackholes Explained
Most lending protocols today are liquidity black holes. This means whenever a user deposits into Aave or BENQI, the user funds are locked inside the Aave or BENQI ecosystem and never leaves. This creates liquidity fragmentation across the DeFi ecosystem, creating a black hole of liquidity. ### Liquidity Aggregator Explained
This allows Pinjam to be a **true liquidity protocol** by providing unborrowed liquidity to other blue-chip protocols. When these protocols receive more liquidity, users in the entire DeFi ecosystem stand to benefit from lower slippage, lower costs of borrowing, and a better user experience overall. **Pinjam is a boon to the entire DeFi ecosystem.** ### Our Vision as a Liquidity Aggregator We intend to build the first sustainable value accrual money market by absorbing liquidity, redistributing unborrowed funds throughout the entire DeFi ecosystem, and returning those generated value back to the Pinjam DAO. A unique prospect of Pinjam, is that as DeFi matures over-time and as other protocols generate more impactful yield opportunities, Pinjam users will directly benefit without needing to do anything but collect interest. In short, as DeFi matures, the Pinjam protocol will only get, much better! Eventually the Pinjam DAO will be a decentralized collective of users, determining the flow of capital throughout the entire DeFi ecosystem. That, is the vision of a Liquidity Aggregator. # Get Paid To Borrow and Deposit Incentives With Pinjam's approach of 100% capital productivity, lenders can earn yield from two sources: 1. Borrowing activity on Pinjam 2. Yield Farming activity - by putting unborrowed funds to work in Pinjam Auto-Compounding Vaults that earns yield from base lending protocols such as Aave When this happens, there will be times where Pinjam's lending APY can be HIGHER than its borrowing APY. In other words, 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!\ \ Let's visualize this.
Take a look at USDT on Pinjam. Lending APY is 2.63% - while borrowing APY is 1.96%. You can borrow USDT on Pinjam and pay 1.96% for interest - but then lend that same USDT on Pinjam to EARN 2.63% yield. It's not every day that you see this happening on lending platforms! ## 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! ## Where Does The Fee Come From? The Fee paid to depositors is 1% of the total rewards generated from the idle liquidity at work. As an example, if there is $100 in the vault earning 10% per annum, in one year the vault will have generated $10 in rewards, $0.10 will then be paid to depositors who help to continue to put idle liquidity to work. ## Isn't This Prone To Manipulation? To put it simply, no. Here's why. A Pinjam user can only claim whatever incentives later --- from the last instance that they claimed. **Scenario 1** For example, if there is $100 in farming rewards, the incentive would be $1 (since it's 1% of the total rewards generated from idle liquidity at work)\ \ If someone (or even a bot) claims it, the farming rewards will then decrease to $99. You will only be able to claim accumulated farming rewards from the $99 point onwards.\ \ Assuming there's an extra $100 in farming rewards, totaling $199 in farming rewards. You will only be able to claim the incentive from that extra $100 (giving you the $1 incentive), not the $199 farming rewards in total. #### Scenario 2 What if someone deposits a huge amount to gain the incentives later?\ \ That user would have to wait for farming rewards to accumulate AND hope no one else claims the incentives by then. **Scenario 3** What if a bot attempts to claim the farming rewards every single time? For a bot to remain profitable doing so, it has to wait until farming rewards are at a sufficient level where the 1% incentives can at least cover its gas fees to deposit to the vault. Not only that, the bot has to claim the incentives before anyone else --- if someone else claims it, the incentives reset again. Even if the bot is able to claim the incentives, by depositing into the vault directly, it is ensuring that idle liquidity is being worked to generate yield. It's a win-win situation. # The Yield Flywheel The Yield Flywheel, enabled by putting Idle Liquidity to work
With our innovative solution of utilizing idle liquidity, this will lead to higher yields across Pinjam - regardless of market conditions and borrowing demand. With this, more lenders would be keen to deposit capital into Pinjam. And as there will be more liquidity in the asset pools, this will then lead to lower borrowing rates for borrowers. When this happens, there would be demand for borrowing, whether it be from yield arbitrage or real use-cases such as shorting a coin - which leads to higher interest rates for lenders, which then attracts more liquidity to Pinjam. This is what we call the yield flywheel and what we hope will power Pinjam's growth. # DeFi Evolution Pinjam pushes DeFi into its next natural evolution
### Evolution of The Traditional Banking System The traditional banking system started with bartering, which eventually evolved into trading with silver & gold coins. As commerce grew, people needed a safe place to store their coins --- otherwise, it would be easy to rummage through someone's house and steal all their gold coins while they were out! So the first form of banks came along and told everyone they would securely keep their coins for them, for a fee!\ \ This was Full Reserve Banking - where people pay banks to securely keep their coins for them. Eventually, these early bankers realized, not everyone needed their money at all times. They asked themselves: **"Why don't we lend it out to those who need it and we can charge interest on those loans?"** Just like that, Fractional Reserve Banking was born. This is where the Pinjam protocol is taking DeFi. By implementing this concept, the Pinjam protocol can earn more yield from allocating unborrowed funds to battle-tested protocols and pay depositors a higher and more productive yield. All this without some **over-the-top Ponzinomic model**. #realyield ### Lending Protocols Today Follow The Full Reserve Banking Model With existing lending protocols today, users will deposit their funds into Aave and BENQI but based on data from [dune analytics](https://dune.com/datanut/Compound-Maker-and-Aave-Deposits-Loans-LTV) only at most, 60% of those will be borrowed --- while the remaining 40% sits idly in the contracts not being productive. Just like those early bankers, Pinjam realized that not all user funds are 100% utilized. Thus, the Pinjam protocol was born! This pushes DeFi lending to its next natural evolution of being Liquidity Aggregators. However, unlike traditional banks that loan out to other banks who then take unknown risks or leverage, Pinjam will be fully on-chain and putting idle liquidity into other blue-chip base-layer protocols such as Aave and BENQI. **On-chain** **Frational Reserve Banking** have the benefits of higher yield and capital productivity with full transparency of how the idle funds are utilized while minimizing the traditional risks of unknown counter-party risks, the ones that makes economies and banks go #bust! # Security The Security Precautions Taken By The Team **Smart Contact Audits** The Pinjam Protocol is heavily based on AaveV2 and Geist Finance. The full audit report can be found here with no critical findings and all low level findings resolved. {% embed url="" %} **Risk Management With Protocol-to-Protocol Lending** The team behind Pinjam Protocol has set up a unique monitoring infrastructure to monitor the underlying liquidity of the integrated protocols, creating a new metric\`Collateralization Factor\`.

Vault Info on Reserve Page

This means if the vault has $100 at worked in a yield source with $400 of liquidity, the collateralization factor is 400%. The moment the collateralization factor drops below 150%, the vault will automatically start withdrawing from the yield source in order to avoid the risk of accruing bad debt and to ensure sufficient liquidity for Pinjam Lenders. Any new Protocol Integration will go through a governance process. **Custom Oracle Backstop If Assets Depeg** The team has also created our own on-chain emergency oracle for the purpose of functioning when our main oracle is non-functional (at this moment, Witnet) and/or a depeg situation occurs for our assets. Here's the reason why. Right now, Witnet is pulling asset prices from exchanges which will be entirely unreliable when it comes to depeggings. Witnet also does not properly monitor bridged assets (which is very crucial) and their price oracle can be faulty too. Our on-chain emergency oracle will be pulling from Equlibre's price feeds which will be more accurate - thus ensuring that liquidations are executed as expected should depeggings occur. # Token Utility
Pinjam will be distributing all of the revenue generated directly to users who stake. Both lenders and borrowers receive $TOKEN rewards to incentivize protocol use - but with different distributions over time. The tokens will be vested for 3 months but may be claimed immediately for a 50% penalty. The penalty is then distributed to users who choose to lock for 3 months. This mechanism ensures steady rewards for those who actively commit to the protocol by locking their tokens. 1. If you're a staker, you receive protocol fees. 2. If you're a locker, you receive protocol fees - AND exit penalties from users who exit their vests early. Additionally, when users lend on Pinjam, the Pinjam protocol will lend out **unborrowed** funds to other ecosystem projects which will generate yield, resulting in higher yields for lenders and stakers. # PINKAV Rewards
### How to receive Token rewards? When you borrow and lend on Pinjam, you will receive Token rewards incentives. Upon launch, you can view the rewards APR on the markets page. ### Are my rewards vested? Yes, when you claim your rewards, it will be vested for THREE (3) months. If you wish to immediately withdraw your rewards, you will need to take a 50% exit penalty. During vesting, you will still receive protocol fees - the same applies as well when you stake. # Staking vs Locking ## What is Staking? When you stake on Pinjam, you receive 100% of Pinjam's revenue (distributed among everyone else who is also staking). If you wish to exit staking, there won't be a penalty or lock period. ## Locking PINKAV? What's That? Similar to staking, you will still receive a share of protocol fees. However, since you have taken the extra commitment of locking for THREE (3) months, you will also receive penalty fees from users who exited their vesting periods earlier.
## Wait, Explain It To Me Again? **For those borrowing and lending, the terms will be as such:** * Claiming Pinjam rewards it will be vested for THREE (3) months but can be withdrawed early - however, this comes with a 50% penalty. * When vesting you will earn Protocol Revenue generated from the borrowing & farming activity on Pinjam. * The 50% penalty incurred will be distributed as rewards to those who have locked. **For those locking PINKAV:** * Lock dates will be grouped according to the week. Any lock conducted between Monday 00:00 UTC to Sunday 23:59 UTC will still be grouped in the same week group and will be released together THREE (3) months later. * The locked Pinjam tokens will be locked for the mandatory THREE (3) months - and cannot be unlocked early at all. * You can claim your Pinjam rewards from locking Pinjam anytime - with no penalty whatsoever. You will still keep the APR for locking PINKAV after the THREE (3) months lock - until you claim the newly unlocked Pinjam Tokens. # Protocol-Owned Liquidity (3,3)
A module called The Protocol Owned DEX Liquidity (PODL) uses half of PINJAM's Native fee rewards to purchase LP tokens. To maintain good, continued liquidity and to essentially make fewer Tokens available over a long enough timeframe, all purchased PINJAM LP tokens are permanently locked. PODL provides a 5% premium on the LP price as a reward. PODL is a mechanism to exit your LP position by selling your LP Tokens directly to the protocol; it is by no means required. This is a win-win situation because you are benefiting the protocol and making money at the same time. ### Improved Liquidity with Vote Escrowed (VE) integration on Équilibre (veDEX)

Vara Emissions Flywheel

As the PODL module locks LP tokens in the contract, it can also be used to farm the veDex emissions on Équilibre, as shown in step 1. In step 2, the PODL will take those veDex emissions, lock them as veNFT for 4 years - which will then be used to vote for more veDex emissions to the LP pool in step 3.\ \ The cycle of steps 2 & 3 will constantly repeat, which will ensure consistent emissions of veDex Tokens on the PINJAM LP pool which will further incentivize more liquidity. The partnered veDEX also stands to benefit by Pinjam taking more veDEX Tokens out of circulation by constantly locking it for 4 years, thus reducing sell pressure on the veDEX token. This will then lead to a flywheel effect to increase liquidity for the Pinjam token and reducing sell pressure on the veDEX Token, ensuring stable rewards for users farming the veDEX Token on the PINJAM LP pool. ## What is Super PODL? For those who have locked more than 10K Pinjam Ecosystem Tokens, Super PODL is an extra feature of PODL available for their use. Upon using the Super PODL feature to purchase all the available Native Token (Kava, Mantle, etc) treasury in one go, a one-week cooldown will be imposed on you. ## How do I PODL? To use PODL, you can go to the PODL page & approve the contract spending PINKAV-KAVA on your behalf. Pick an amount of Native Token to buy and press the “Buy KAVA/MANTLE” button. ## How do I Super PODL? To use Super PODL, you can go to the PODL page & approve the contract spending the LP Tokens on your behalf. Press the "I'M SUPER PODLING!" button. ## My Pinjams tokens are locked - why can't I PODL? The amount of Native Tokens that you can purchase is determined by the amount of locked Pinjam Tokens and the amount of Native Tokens currently available in Pinjam's treasury. You will need to unstake your PINJAM LP tokens to enable selling to the treasury. You can see this number on the PODL page: *(“Based on your locked PINKAV, you can buy: x KAVA“)* The PODL button will be disabled if the buyable KAVA amount is lesser than 1 KAVA. The formula used to determine the amount of buyable KAVA is as such: buyable KAVA = 25 \* available KAVA in treasury \* (your locked PINKAV / total locked PINKAV) Given the available KAVA in the treasury refills as KAVA borrowing fees are paid. ## I Locked More Than 10,000 in PINKAV - why can't I Super PODL? You need enough unstaked PINKAV-KAVA to purchase the full treasury in order to Super PODL. What this means is that: KAVA available in treasury/PINKAV-KAVA price (in KAVA) ## Where can I see PODL stats? On the PODL page, you may view the following PODL statistics: * PINKAV/PINTLE owned by the treasury * PINJAM LP Tokens owned by treasury * Total Native Tokens sold # Token Buyback The Pinjam Protocol has been designed with incentives for the public to conduct Pinjam Token buybacks. ### Public Incentives The public incentives of buying back is designed around the [Protocol-Owned Liquidity](/pinjam-ecosystem-tokens/protocol-owned-liquidity-3-3)(3,3) module. The (3,3) mechanics will allow users to trade in their KAVA/PINKAV LP tokens in exchange for KAVA at a 5% premium. This means for every $1 of KAVA/PINKAV LP a user provides, they will get back $1.05 of KAVA, instantly.
This module requires a user to buy PINKAV for 2 reasons: 1. In order a for a user to be eligible to participate in the (3,3) mechanic, a user will first need to buy PINKAV, and lock it. 2. Once locked, a user will then need to buy PINKAV and then provide KAVA/PINKAV liquidity to the LP pool, which they can then exchange those LP tokens for KAVA. # $PINKAV (Kava) # Tokenomics The Pinjam's Ecosystem token on KAVA will have a total supply of 50,000,000. * **50% given as incentives for lenders and borrowers** - released over a period of 5 years. * **10% given as incentives for PINKAV-KAVA liquidity providers** in the form of bribes on Equilibre - released over a period of 5 years.
**Community Airdrops - 5.75% (Will be unlocked linearly throughout one year)** * 2.0% - Zealy Quests (Testnet + Sharing about Pinjam + LGE) * 1.5% - $GEIST Lockers * 0.75% - $MARE Stakers (sMare/uMare) * 0.75% - Équilibre $VARA Lockers (veVara) * 0.75% - $TORE Lockers [**LGE Participants - 15%**](/pinjam-growth-strategy/pinjam-on-kava/liquidity-generation-event-lge) * 5% of tokens go to initial liquidity * 10% of tokens go to participants for LGE 19.25% to the team - vested linearly over two years \ With the unique structure of the tokenomics as well as token utilities, LGE participants will be able to receive a 20% bonus allocation of $PINKAV while ensuring that Pinjam on KAVA remains competitive. # PINKAV Airdrop Program **The Pinjam protocol will be having 4 airdrop programs running concurrently which include:** 1. Équilibre veVara lockers 2. Mare Finance stakers (uMare/sMare) 3. Geist Finance lockers 4. Toreus Lockers 5. Zealy Quest (Testnet + Social Sharing) For all airdrops mentioned, $PINKAV tokens will be unlocked linearly throughout a period of ONE (1) year. The $PINKAV airdrop will be happening sometime around August 2023. Upon tokens being unlocked, once you claim PINKAV from the dashboard, it will need to be vested for 3 months. Once claimed and while being vested, your PINKAV tokens will be automatically staked - earning you fees! If you withdraw before the vest finishes, you will be penalized by 50% for withdrawing early. During this vesting period, you will still be earning protocol revenue. If you want to lock it, you will need to pay the 50% penalty and then lock it separately. In this section, we will go into detail on how you can qualify for each airdrop and % of supply being airdropped for each airdrop. ## Équilibre veVara Lockers **How to qualify:** Locked $VARA (veVara) balance of 1000. With Équilibre - if you lock 1000 VARA for 1 year, it will only equate to 250 veVARA. Do ensure you have the right locked amount in order to qualify. **Snapshot Details:** 5th May (random time) **Total PINKAV allocated:** 375,000 ## Mare Finance Stakers **How to qualify:** Combined staked $MARE (uMare/sMare) balance of 250 **Snapshot Details:** 5th May (random time) **Total PINKAV airdrop:** 375,000 ## Geist Finance Lockers **How to qualify:** Locked $GEIST balance of 25,000 **Snapshot Details:** 5th May (random time) **Total PINKAV airdrop:** 750,000 ## Toreus Lockers **How to qualify:** Any amount of locked TORE **Snapshot Details:** 5th May (random time) **Total PINKAV airdrop:** 375,000 ## Zealy Quests (Testnet + Social Sharing) **How to qualify:** Complete as many quests on [Zealy](https://zealy.io/c/pinjamlabs/questboard) and gather more XP. Your $PINKAV airdrop amount will be dependent on your total XP! **Snapshot Details:** No snapshot. The % of airdrop you receive will be based on your XP level on Zealy **Total PINKAV airdrop:** 1,000,000 # PINKAV Reward Emissions ## Reward Emissions and Bribes * PINKAV will be rewarded to users who lend/borrow tokens in the protocol - emissions will take place over a period of 5 years * PINKAV reward emissions will decrease over time * For liquidity, Pinjam will be bribing Equilibre Finance on a weekly basis instead of giving tokens freely to liquidity providers. ## Emission Schedule Based on discussions with the Geist Finance team, one of their regrets (and their suggestion to us) was to not have very high token emissions at the beginning — with that in mind, we have smoothened out the curve so that the first-month inflation will begin at 5.06% of total emission rewards vs. 8.33% at Geist Finance.

PINKAV Reward Emissions

MonthToken ReleasedBribes
11,518,931304,110
21,446,050286,087
31,376,666269,131
41,310,611253,181
51,247,726238,176
61,187,858224,060
71,130,862210,781
81,076,602198,289
91,024,944186,537
10975,766175,481
11928,947165,081
12884,374155,298
13841,941146,094
14801,543137,435
15763,083129,290
16726,469121,627
17691,612114,419
18658,427107,638
19626,835101,259
20596,75895,257
21568,12589,612
22540,86584,301
23514,91479,305
24490,20774,605
25466,68670,183
26444,29466,024
27422,97662,111
28402,68158,430
29383,35954,967
30364,96551,709
31347,45348,644
32330,78245,761
33314,91143,049
34299,80140,498
35285,41638,098
36271,72135,840
37258,68333,716
38246,27131,718
39234,45529,838
40223,20528,069
41212,49526,406
42202,30024,841
43192,59323,369
44183,35221,984
45174,55420,681
46166,17919,455
47158,20518,302
48150,61417,217
49143,38816,197
50136,50815,237
51129,95814,334
52123,72213,484
53117,78612,685
54112,13411,933
55106,75411,226
56101,63210,561
5796,7559,935
5892,1139,346
5987,6938,792
6083,4858,271
# $PINTLE (Mantle) # Tokenomics The Pinjam's Ecosystem token on Mantle will have a total supply of 50,000,000. * **50% given as incentives for lenders and borrowers** - released over a period of 5 years * **10% given as incentives for PINTLE-MNT liquidity providers** in the form of bribes on \[redacted exchange] - released over a period of 5 years * **Private Investors - 2%** * **Community Airdrops - 4.5% (Will be unlocked linearly throughout one year)** * Zealy Quests (2%) * Pinjam KAVA Lockers (1%) * Pinjam KAVA Depositors (1.5%) [**LGE Participants - 17.5%**](https://docs.pinjamlabs.com/pinjam-growth-strategy/pinjam-on-kava/liquidity-generation-event-lge) * 7% of tokens go to initial liquidity * 8.5% of tokens go to participants for LGE * **13.5% to the team - vested linearly over one year** * **2.50% to KOLs/CT Influencers** \ With the unique structure of the tokenomics as well as token utilities, LGE participants will be able to receive a bonus allocation of $PINTLE while ensuring that Pinjam on Mantle remains competitive. # $PINTLE Airdrop Program **The Pinjam protocol will be having 4 airdrop programs running concurrently which include:** 1. $PINKAV Lockers 2. $PINKAV Depositors 3. Zealy Quest (Testnet + Social Sharing) For all airdrops mentioned, $PINTLE tokens will be unlocked linearly throughout a period of ONE (1) year. The $PINTLE airdrop will be happening 1-2 months after fully launched on Mantle. Upon tokens being unlocked, once you claim $PINTLE from the dashboard, it will need to be vested for 3 months. Once claimed and while being vested, your $PINTLE tokens will be automatically staked - earning you fees! If you withdraw before the vest finishes, you will be penalized by 50% for withdrawing early. During this vesting period, you will still be earning protocol revenue. If you want to lock it, you will need to pay the 50% penalty and then lock it separately. Airdrop % distribution and methods to qualify will be shown soon. # $PINTLE Reward Emissions ## Reward Emissions and Bribes * $PINTLE will be rewarded to users who lend/borrow tokens in the protocol - emissions will take place over a period of x years * $PINTLE reward emissions will decrease over time * For liquidity, Pinjam will be bribing on \[redacted ve(3,3) DEX] on a weekly basis instead of giving tokens freely to liquidity providers. ## Emission Schedule Will be revealed soon! # Multi-Chain Expansion Strategy Liquidity mining programs, for the most part, have been the most common form of incentivizing protocol participation among DeFi users. However, many protocols (especially if they are on multiple chains) are limited by how much rewards they can give out since there is a limited supply. At some point in time — most projects — no matter how good they are, can be overtaken by another competitor purely based on the fact that their competitor provides better rewards — through their token emissions. *i.e. Uniswap vs Sushiswap or Aave vs Compound*.

A single AAVE token on all chains

Taking AAVE as an example, because they’ve limited themselves to having just one token that’s able to be used on every chain, this severely limits how much they can incentivize users of other ecosystems to use their protocol as Aave will need to dilute their token emissions. Take this scenario for example: 1. Aave on ETH emits 10 Aave tokens per block, netting lenders a 5% APY reward. 2. Aave expands to Fantom and wants to provide a liquidity mining program, to avoid increasing inflation of the token and reaching max supply earlier than planned, Aave instead reduces the emission of the Aave token on the ETH network from 10 to 5, decreasing the net APY reward from 5% to 2.5%. 3. This decrease in the ETH network will then allow Aave to also offer 5 Aave tokens per block on Fantom, netting lenders on Fantom the same 2.5% APY reward. The scenario above shows that as the Aave protocol continues to expand onto other networks, they will have to dilute their liquidity mining rewards and be outcompeted with other lending protocols that are native to that network, hindering the growth of Aave. This can be seen in the AAVE vs. Geist scenario during FTM season in late 2021, where Geist was able to out-compete AAVE in attracting TVL growth — simply from the fact that Geist was providing higher, non-diluted token rewards for their liquidity mining program. In fact, Geist Finance is still the [leading Lending protocol on Fantom](https://defillama.com/chain/Fantom) today with $60M in deposits while Aave with less than $1M in deposits — the power of a solid liquidity mining and tokenomics structure. This proves that even though Geist and Aave are literally the same product, as Geist is a fork of Aave, but by having a single token on a single network, Geist was able to outcompete Aave and dominate the Fantom network as the leading lending protocol. At the end of the day, DeFi participants look at how much they can be incentivized — which leads us to Pinjam's innovation on flipping the playbook with the aim of gaining market dominance on, every, network.

Pinjam Ecosystem Token on each Blockchain

With each chain that Pinjam is on, Pinjam will be creating a chain-specific, ecosystem token that cannot be bridged elsewhere. For example, for the Pinjam protocol on Ethereum (ETH), we will be using the $PINETH token. The same concept applies to every chain. By applying this concept, these are the benefits: 1. **Chain-Specific Liquidity Mining Programme** With this approach, we will have an ample amount of non-diluted ecosystem tokens on each chain to use for liquidity mining programs. This allows us to compete with other lending protocols on each chain Pinjam launches on — allowing us to attract users and over time, keep them sticking in the Pinjam ecosystem. 2. **Removes Unnecessary Dilution & Isolates Risk** When an ecosystem collapse such as Terra Luna or when community interest dwindles such as Harmony One, the risk is isolated and only chain-specific tokens are affected while others remain safe. There will also be **zero** dilution of the token emissions when we launch a liquidity mining programme on other chains, where if that chain ecosystem fails, the rest of the Pinjam ecosystem will remain healthy and safe from parasitic farm & dump. 3. **Aligned Governance From Ecosystem Participants** These chain specific tokens will also serve as governance tokens for that specific network and Pinjam whales from a single chain will not be able to influence decisions made on other chains. That way, holders of a Pinjam token from a specific ecosystem will have greater participation and have a more meaningful say on how the project is governed in a network. ## Pinjam Index Token ($PINDEX)

Pinjam Index Token (PINDEX)

The Pinjam Index token will be the main token that represents the average of the Pinjam protocol. It will collect 20% of revenue from all Pinjam products from each protocol, allowing users to have a balanced stake and growth in Pinjam without taking on 100% of an ecosystem risk. The Pinjam Index ($PINDEX) token is not a governance token. It will be bridgeable although there might not be many use cases for doing so and it will be this token that will be tradeable on CEXes. **There will be no liquidity mining program for the Pinjam Index token, it will only be purchasable from secondary market sales or via an airdrop.** Users will only be entitled to a $PINDEX airdrop by [participating in LGE purchases](/pinjam-growth-strategy/pinjam-on-kava/liquidity-generation-event-lge) from Pinjam ecosystem tokens. Participating in the LGE token purchases will entitle you to 5% of the $PINDEX tokens.
# Liquidity Mining Programme & PINKAV Bribes Distribution $PINKAV will be distributed to lenders and borrowers of the Pinjam Protocol - with more emissions being directed toward borrowers to incentivize borrowing. Unlike most lending protocols, lending also benefits Pinjam in terms of fees -as any Unborrowed Liquidity will be deposited to Mare Finance earning farming interest. It will be distributed as the following: Supply (10%), Borrow (80%), and Bribe (10%). # PINJAM Roadmap Over the past year, the Pinjam team has been working to develop our innovative lending protocol - having undergone user feedback for our testnet and finally launching our product.\ \ With the Pinjam protocol, lenders can finally achieve 100% capital efficiency - generating extra yield on every dollar that they lent out! Here's what the Pinjam protocol has achieved so far:\ \ ✅ Received 15K KAVA grant from KAVA Foundation ✅ Audited by Solidity Finance ✅ Received 95K+ KAVA during our PINKAV Liquidity Generation Event (LGE) ## BUIDL-ing Timeline ✅ Pinjam Protocol Launch - Earn Yield on Your Unborrowed Funds! ✅ DeFi Llama Listing ✅ Coingecko Listing ✅ Debank Listing ✅ Accepted into KAVA RISE Incentives Program * CoinMarketCap * Multi-Chain Expansion * Pinjam V2 # Pinjam on KAVA # Liquidity Generation Event (LGE) This section explains the LGE event on the Kava Network
The first Pinjam ecosystem token will be launching on the Kava network via a Liquidity Generation Event. It will be the first step for users to enjoy the benefits of the Pinjam ecosystem upon the token upon launch. When users participate in the LGE, they will be allocated their proportional amount of PINKAV tokens based on their deposits amount in the LGE -- all of which are claimable when the LGE ends. This total PINKAV supply allocated to the LGE is 15%. **The breakdown of LGE token distribution will be as below:** * 5% of tokens go to initial liquidity * 10% of tokens go to participants for LGE *50% of the LGE participant reward tokens will be unlocked instantly. The other 50% will be vested linearly over a year.* **Benefits of participating in the LGE** 1. Earn an additional 20% in PINKAV supply. \- *If you participated with 100 KAVA, you'll receive 120 KAVA worth of PINKAV tokens at launch.* 2. If your community is partnered with PINJAM you gain an additional 11% bonus when participating in the LGE. *- If you participated with 100 KAVA, on top of the 20% bonus above, you gain an additional 11% bonus totaling to 131 KAVA worth of PINKAV tokens at launch.* 3. Participating in the LGE will entitle users a share of 5% from the total supply of our $PINDEX token in a future airdrop- learn more in our [multi-chain expansion strategy](/pinjam-growth-strategy/multi-chain-expansion-strategy) **The breakdown of the fund distribution will be as such:** * 70% of funds go to the initial liquidity of PINKAV-KAVA pool * The remaining 30% will be allocated to ecosystem funds & partners, which is broken down as: * 40% will be used to bribe the PINKAV-KAVA pool to incentivize liquidity * 20% will be used to purchase VARA, locked as veVARA, and used to vote for our PINKAV-KAVA LP pool * 40% will be used for audits, expansion, and runway for the team **The LP tokens received by the LGE contract will then be transferred to our** [**Protocol-Owned DEX Liquidity contract**](/pinjam-ecosystem-tokens/protocol-owned-liquidity-3-3)**,** which will then be managed as described in that section**.** # Pinjam on Mantle # Liquidity Generation Event (LGE) The $PINTLE token will be launching on the Mantle network via a Liquidity Generation Event. It will be the first step for users to enjoy the benefits of the Pinjam ecosystem upon the token upon launch on Mantle. When users participate in the LGE, they will be allocated their proportional amount of PINTLE tokens based on the amount of their deposits in the LGE -- all of which are claimable when the LGE ends. This total PINTLE supply allocated to the LGE is 15%. **The breakdown of LGE token distribution will be as below:** * 5% of tokens go to initial liquidity * 10% of tokens go to participants for LGE *50% of the LGE participant reward tokens will be unlocked instantly. The other 50% will be vested linearly over a year.* **Benefits of participating in the LGE** 1. Earn an additional 20% in PINTLE supply. \- *If you participated with 100 MNT, you'll receive 120 KAVA worth of PINTLE tokens at launch.* 2. If your community is partnered with Pinjam, you gain an additional 11% bonus when participating in the LGE. *- If you participated with 100 MNT, on top of the 20% bonus above, you gain an additional 11% bonus totaling to 131 MNT worth of PINTLE tokens at launch.* 3. Participating in the LGE will entitle users a share of 5% from the total supply of our $PINDEX token in a future airdrop- learn more in our multi-chain expansion strategy. **The breakdown of the fund distribution will be as such:** * 85% of funds go to the initial liquidity of PINTLE-MNT pool * The remaining 15% will be allocated to ecosystem funds & partners, which is broken down as: * 40% will be used to bribe the PINTLE-MNT pool to incentivize liquidity * 20% will be used to purchase \[redacted token], locked as \[locked redacted token], and used to vote for our PINTLE-MNT LP pool * 40% will be used for expansion, and runway for the team **The LP tokens received by the LGE contract will then be transferred to our Protocol-Owned Liquidity contract,** which will then be managed as described in that section**.** # KOLs Ambassadorship Program For our deployment on Mantle, we have created a KOL Ambassadorship Program where they will be responsible for helping bring more attention to the Pinjam Protocol on Mantle, and by effect, on KAVA as well. By participating in this ambassadorship program, KOLs will be responsible for: 1. Creating original content about Pinjam and/or $PINTLE 2. Engaging with Pinjam content 3. Participate in discussions on Pinjam Discord Accepted KOLs will be given a certain % of the $PINTLE supply in the form of vested $PINTLE, which will be linearly unlocked over 12 months. To further incentivize KOL participation in this ambassadorship program, we have also proposed the following initiatives that will entitle interested KOLs to additional $PINTLE tokens: * Creating video content * Self-hosting community efforts (giveaways etc.) * Referring Pinjam to another protocol for partnership * Referring Pinjam to another KOL for the ambassadorship If you think you have a sizable following and this is an opportunity you'd like to participate in, let us know on Discord or Twitter!
# Basic Overview of Pinjam's Interface In this section, we will be giving a quick overview of Pinjam's interface and what each section/term is used for. This is to ensure Pinjam users are clear on navigating the protocol before using it. We will not be giving an overview of the Faucet page as that will only be available during the testnet. The purpose of the Faucet page is for users to get free assets to test the Pinjam Protocol. The assets on a testnet are not “real,” meaning they have no monetary value. # Pinjam Home/Markets Page
On the Home/Markets page, at the top section, users have the option of selecting the network of their choice. Right now, we are using the Avalanche Fuji testnet network. After we launch, it will consist of more networks (only mainnet) as we seek to expand to multiple chains. Below is a breakdown of the top section and the definition of the terms displayed: **Total Market Size:** The total amount of capital (from all assets) being supplied for that chosen network **Total Available:** The total amount of capital available for borrowing (from all assets) for that chosen network **Total Borrows:** The total amount of capital being borrowed (from all assets) for that chosen network **Idle Liquidity at Work:** Total amount of idle capital being put to work generating yield (from all assets) for that chosen network At the bottom section, users will be able to view a table containing the assets available for that chosen network. Here, you can see the: **Total Supplied:** The total amount of capital being supplied for that asset in the chosen network **Supply APY:** The annual interest lenders will receive when supplying capital for that asset in the chosen network **Total Borrowed:** The total amount of capital being borrowed for that asset in the chosen network **Borrow APY:** The annual interest borrowers will need to pay when borrowing for that asset in the chosen network **Details Button:** Leads you to the Reserve Overview page where you can view asset-specific lending/borrowing details for the chosen network # Pinjam Reserve Overview Page In this section, we will be explaining in detail the Pinjam Reserve Overview Page. We will be dividing into TWO (2) images so that the info can be delivered better.
**Max LTV:** Maximum Loan-To-Value ratio (borrowing power of specific collateral). For example, if the collateral has an LTV of 80%, the user can borrow up to 0.80 worth of BTC in the principal currency for every 1 BTC worth of collateral **Liquidation Threshold:** The threshold at which a borrow position of the chosen asset will be considered undercollateralized and subject to liquidation. For example, if a collateral has a liquidation threshold of 90%, it means that the position will be liquidated when the debt value is worth 90% of the collateral value **Liquidation Penalty:** When a liquidation occurs, liquidators repay up to 50% of the outstanding borrowed amount on behalf of the borrower. In exchange, they can buy the collateral at a discount and keep the difference (liquidation penalty) as a bonus **Borrow Info:** Section detailing borrowing details for that specific asset on a chosen network **Available Liquidity:** Amount of capital that is available to be borrowed **Total Borrowed:** Amount of capital being borrowed by all borrowers on Pinjam for that specific asset on a chosen network **Borrow APY:** Annual interest rate being paid by borrowers of that specific asset on a chosen network **Collector Info:** Info about collectors for borrowing **Reserve Factor:** Percentage of interest which goes to a collector contract **Vault Info:** Section displaying details of idle liquidity being put to work generating yield --- for that specific asset on a chosen network **Idle Liquidity at Work:** Total idle liquidity from ALL lenders of that specific asset in chosen network --- that is being put to work generating yield from battle-tested protocols **Vault APY:** Annual yield % for idle liquidity that's being put to work generating yield on battle-tested protocols **Total Rewards:** Total worked yield for all idle liquidity that's being put to work generating yield on battle-tested protocols **Your Rewards:** Total worked yield for all of your idle liquidity that's being put to work generating yield on battle-tested protocols
**Interest Rate Model:** Section detailing interest rate details for that specific asset on a chosen network **Current Borrow Utilization:** Total amount in % of supplied capital being borrowed for that specific asset on a chosen network **Interest Slope 1:** Borrow rate for borrowers when the utilization rate of capital being used to borrow is equal to or lesser than the optimal borrow utilization for the asset **Interest Slope 2:** Borrow rate for borrowers when the utilization rate of capital being used to borrow is above the optimal borrow utilization for the asset (increasing drastically to discourage excessive lending) **Optimal Borrow Utilization:** The optimal borrowing % of capital for a specific asset being supplied on Pinjam (set by the team) # Pinjam Dashboard Page In this section, we will be explaining in detail the Dashboard page --- especially the specific terms you'll be seeing. The purpose of the Dashboard Page is for users to view their lending/borrowing details - all in one page for easier viewing.
**Assets:** Specific assets that you're supplying on Pinjam **Supplied:** Total capital that you're supplying for that asset in the chosen network **APY:** Annual yield % for lenders of that specific asset on a chosen network **Collateral:** Whether or not that asset in the chosen network can be used as collateral **Supply Button:** Clicking it will open a window allowing you to supply more capital for that asset in the chosen network **Details Button:** Directs you to the Reserve Overview page where lending/borrowing details will be displayed for that asset in the chosen network The Your Debts section displays the details of assets that you have borrowed on Pinjam. Details are as such: **Assets:** Specific asset that you're borrowing on Pinjam **Borrowed:** Total capital that you're borrowing for that asset in the chosen network **APY:** Annual interest rate being paid by borrowers of that specific asset on a chosen network **Repay Button:** Clicking it will open a window allowing you to repay debt for that asset in the chosen network **Borrow Button:** Clicking it will open a window allowing you to borrow more capital for that asset in the chosen network The Your Vault Rewards section displays the rewards that you're entitled to receive -- as a result of Pinjam's novel approach of solving idle liquidity by depositing your capital in other battle-tested protocols to generate yield when there is lesser borrowing demand. Details are as such: **Assets:** Specific asset that you've supplied and am now generating yield on Pinjam --- by utilizing the idle liquidity that's being put to work generating yield on battle-tested protocols **Rewards:** Total capital in yield for that asset in the chosen network **Claim Rewards Button:** Clicking it will open a window allowing you to claim your worked yields for that asset in the chosen network # Basic Functions Discover the various functions of the Pinjam protocol and a step-by-step guide for each one - head to our Discord if you still have questions! # Depositing and Withdrawing ## Depositing Capital on Pinjam
Go to the Home/Markets section of Pinjam (accessible by clicking the Markets tab as well) and select the network in that you wish to deposit your assets. Since we're using the Avalanche Fuji testnet network, that will be the only network shown if you're using the testnet. Select the asset that you wish to deposit in Pinjam by clicking the Details button as shown by the arrow in the image below. In this case, we will be depositing USD Tether (USDT).
After doing so, you will be sent to the Reserve Overview page showing the reserve details of the selected asset (explained more [here](https://docs.pinjamlabs.com/your-guide-to-using-pinjam/basic-overview-of-pinjams-interface/pinjam-reserve-overview-page)). Click the Deposit button as shown by the arrow.
A pop-up will then appear allowing you to deposit your funds. Insert your desired amount and click Deposit. Alternatively, you can deposit your funds straight into the Pinjam vault to generate worked yields immediately on your supplied capital. When you do this, you will also be incentivized over time.\ \ Funds for rewards come from the 10% farming fee imposed --- from which 1% will be given back to the user. **Note:** You will need to approve Pinjam first before being able to access the asset you want to deposit
Complete the necessary steps to complete the transaction on your preferred wallet and voila, you have deposited into Pinjam. ## Withdraw Your Capital on Pinjam To withdraw your capital from Pinjam, head over to the Reserve Overview page (which can be accessed by heading over to the Home Page and clicking the Details button available for each asset). Click the More drop-down button as shown in the image below.
A drop-down menu will then pop up allowing you to select specific actions. Select Withdraw, insert your desired amount, and click Withdraw.
Complete the necessary steps to complete the transaction on your preferred wallet to complete your withdrawal from Pinjam. # Borrowing ## What You Should Know About Borrowing Users decide to borrow assets when they believe that a specific asset has promising growth potential, or at least enough for the risk appetite of the user. Borrowing against assets allows users to invest funds that they may not have had earlier, which leads to further expansion of the DeFi ecosystem. ## How To Borrow On Pinjam To borrow capital on Pinjam, head over to the Reserve Overview page (can be accessed by heading over to the Home Page and clicking the Details button available for each asset). Click the More button as shown in the image below.
A pop-up will then appear allowing you to borrow funds. Insert your desired amount and click Borrow.
Complete the necessary steps to complete the transaction on your preferred wallet to complete your borrowing from Pinjam. ## How Much Can I Borrow On Pinjam? The amount that you can borrow depends on your collateral value, the liquidity that's available for the asset that you intend to borrow, as well as the LTV of your collateral. To break it down simply: If your collateral has a 50% LTV that means you can borrow against half of its value so long as enough assets are available to borrow. Each asset has its own loan parameters, which you can find out more about in the “Repaying Loans” section. # Repaying Loans ## How Do I Repay My Loans? Users must repay the loans they have taken using the same type of asset that they have borrowed. For example, if you were to borrow USDC against ETH, you will need USDC to be repaid with interest included so that your collateral is free for withdrawal. Here is how you repay your loans on Pinjam. To repay loans on Pinjam, head over to the Reserve Overview page (which can be accessed by heading over to the Home Page and clicking the Details button available for each asset). Click the More button as shown in the image below.
A drop-down menu will then pop up allowing you to select specific actions. Select Repay, insert your desired amount and click Repay.
Complete the necessary steps to complete the transaction on your preferred wallet to complete your loan repayment on Pinjam. ## What Should I Know About Interest Rates? The interest rate paid by the borrower is very much dependent on how well an asset is being used, and this is subject to frequent changes. The interest rate to borrow (on all existing loans) rises when more of an asset is borrowed, and it falls as utilization falls. High-interest rates could encourage more deposits or loan repayments. Users can always view their borrowing interest on the Borrow Info section of the Reserve Overview page (as shown in the image below).
The Health Factor is a measure of the risk that some of your collateral will be seized to repay debt. If the Health Factor is low, it means that there is a higher risk of liquidation. Liquidation is the process of selling off collateral in order to repay debt, and it can happen in chunks of up to 50% of the loan size at a time. If an asset has a high level of volatility, it is possible to see a partial liquidation. For example, if an asset has a loan-to-value (LTV) ratio of 20% and the Health Factor goes to 1, this means that the entire position will be liquidated, leaving approximately 80% (minus any liquidation fees) of the collateral remaining. On the other hand, if the Health Factor is high, it indicates that the position is safer and there is a lower risk of liquidation. One way to increase the Health Factor is to borrow a smaller amount relative to the maximum allowed for a particular asset. You can view your Health Factor by heading over to the Dashboard Tab, where your lending/borrowing details will be displayed as shown.
## What To Know About Repaying My Loans Loans do not have a fixed term and can continue as long as the position is financially healthy. To ensure that the loan remains safe from liquidation, the value of the asset being used as collateral must increase at a faster rate than the interest rate on the loan and the value of the borrowed asset. Interest rates on loans can vary based on the demand for borrowing and should be taken into account when evaluating the financial health of a position. ## How To Avoid Being Liquidated If the Health Factor of a position is approaching 1, users have the option to either add more collateral to the loan or repay the loan. Repayment can be done using external funds in the user's wallet. Repaying a portion of the loan using external funds will result in a greater increase in the Health Factor than adding additional assets as collateral. # Collateral Different parameters will be set for each asset based on its specific risk profile. Assets with high liquidity, such as stablecoins and ETH, will have a higher loan-to-value (LTV) ratio, which means that users can borrow a larger percentage of their value. The liquidation threshold, which is the point at which a loan is considered unhealthy and may be subject to liquidation, is always higher than the LTV. This ensures that healthy loans are not liquidated unnecessarily. To encourage other users to liquidate unhealthy loans and protect the protocol, a liquidation fee is charged to the user's collateral. A portion of this fee is also placed in the treasury to protect against insolvency in volatile market conditions. In order to limit the potential for bad debt, the supply of certain assets may be capped. # Idle Liquidity Utilization When using Pinjam, lenders have the opportunity to earn high yield on top of previously idle capital. Idle capital simply means money that's sitting in the smart contracts of lending platforms, not doing anything. Pinjam will be utilizing up to 80-90% of idle capital towards our vaults --- which will put them to work by depositing them in battle-tested protocols such as Aave, Curve, and Uniswap LPs to earn more yield for our lenders (you!) In times of low borrowing demand, this would mean that lenders still earn yield. When borrowing demand increases, the same still applies - though at a lesser rate since most funds will presumably be used for borrowing. Here's a brief overview of how it looks like:
On the Home page, we can see the amount of Idle Liquidity being put to work (as pointed out by the orange arrow). It represents a significant amount of idle capital to ensure efficient utilization of idle capital.
Head over to the Reserve Overview page as seen in the image above (can be accessed by heading over to the Home Page and clicking the Details button available for each asset). Here, you can see the amount in dollars of idle liquidity at work and capital productivity of available capital -- as well as the vault info displaying the actual amount of idle liquidity at work, yield APY, total yield rewards, and your rewards. Come try it out! # Claiming Worked Yields Here is how you can claim your worked yields from lending out your assets. First, head over to the Reserve Overview page as shown below (can be accessed by heading over to the Home Page and clicking the Details button available for each asset). Click the More button as shown in the image below.
A drop-down menu will then pop up allowing you to select specific actions. Select Claim Vault Rewards, and click Claim. Complete the necessary steps on your desired wallet to complete the transaction.
You will then receive the worked yields in your wallet. It's as easy as that to enjoy your yields from Pinjam! # Website/Social Profiles In this section, we've listed the links for the Pinjam Protocol, our Twitter profile, and Discord. Use the Pinjam Protocol here: Twitter: Discord: Join us [here](https://discord.gg/pinjamlabs). # Reading Materials We've listed links to our reading materials in this section such as our whitepaper and Medium page. **White Paper** Go in-depth into the Pinjam protocol with our whitepaper - where we break down the how, why, and what behind Pinjam.\ \ Check it out here: **Medium** Check out our Medium page here where we will be posting updates about Pinjam from time to time. Click here: # Contract Addresses All relevant contract addresses you need to know for Pinjam Liquidity Generation Contract: 0xAbDE86e3B13c258e302DC74c1feb1738E2223991\ \ PINKAV Token Contract: 0xE5274E38E91b615D8822e8512a29A16FF1B9C4Af\ \ LP Contract: 0xD271cF9E590121C0dc3bEC562178A281E75B617d
# FAQ 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?** Nope! 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](https://discord.com/invite/5F66V8cKqa) and [Twitter](https://twitter.com/PinjamLabs)! **How do I use Pinjam?** You can refer to the Pinjam UI navigation [here](https://docs.pinjamlabs.com/your-guide-to-using-pinjam/basic-overview-of-pinjams-interface) and Pinjam's basic functions [here](https://docs.pinjamlabs.com/your-guide-to-using-pinjam/basic-functions). **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](https://twitter.com/PinjamLabs) and join us on [Discord](https://discord.gg/pinjamlabs).\ \ If you're keen to get into the details, you can check out this documentation you're reading now, our [whitepaper](https://pinjamlabs.com/whitepaper.pdf), and also our [Medium articles](https://pinjamlabs.medium.com/). # Pinjam's License Usage Pinjam V1 uses the [BUSL license](https://spdx.org/licenses/BUSL-1.1.html), effective until the date of 1st July 2025. # Legal Disclaimer Please carefully review this disclaimer before using and/or any of its sub-domains (referred to as the "Website"). By using the Website, you acknowledge that you accept this legal disclaimer and agree to abide by it. If you do not agree, you must refrain from using the Website. **Information Published Shouldn't Be Considered As Advice** The information provided on the Website should not be considered as investment advice, financial advice, trading advice, or any other form of advice. You should not treat any content on the Website as such. The Website is offered as a service to the public, and our team explicitly disclaims all liability for damages of any kind resulting from the use, reference to, or reliance on any information provided on the Website. Although the information on the Website is periodically updated, there is no guarantee that it is accurate, complete, and up-to-date. **Risks of Usage** The Website will not be held responsible for any losses, damages, or claims arising from various events, including but not limited to mistakes made by users (e.g., sending payments to the wrong addresses), software issues with the Website or related software or services (e.g., malware or insecure cryptographic libraries), technical failures (e.g., malfunctioning hardware wallets), security problems faced by users (e.g., unauthorized access to wallets), or actions or inactions of third parties (e.g., service providers going bankrupt, information security attacks, or fraud conducted by third parties). **Risks of Investing** Investing in cryptocurrencies carries the risk of financial loss and significant price fluctuations. The information published on the Website does not guarantee the absence of financial loss. It is the responsibility of the Website user to understand these risks, conduct their own research, and make their own decisions on how to interact with the Website. **Tax Compliance Obligations** The users of the Website are solely responsible for determining whether any taxes apply to their cryptocurrency holdings. The owners or contributors of the Website are not responsible for determining the tax obligations related to user transactions. **No Warranties** The Website is provided on an "as is" basis, without any warranties regarding the Website or any content, data, materials, and services provided on the Website. The Website's functionality is not guaranteed and may be fully or partially disabled without prior notice. **Security** Security audits do not completely eliminate risks. The Website cannot guarantee absolute security or freedom from bugs or viruses. **Limitation of Liability** Unless otherwise required by law, the owners or contributors of the Website shall not be liable for any damages, including but not limited to loss of use, loss of profits, or loss of data, arising from or in connection with the use of the Website. **Arbitration** By using the Website, the user agrees to resolve any disputes arising from or related to the Website or this disclaimer through arbitration, except for disputes involving copyrights, logos, trademarks, trade names, trade secrets, or patents.