π‘The Yield Flywheel
The Yield Flywheel, enabled by putting Idle Liquidity to work
Last updated
The Yield Flywheel, enabled by putting Idle Liquidity to work
Last updated
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.