Pinjam
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Welcome to Pinjam

Understand the Pinjam (Pronounced: Pin Jump) Protocol and what we are doing!
Pinjam is the latest innovation for capital efficiency in lending protocols -- whose sole focus is on achieving 100% capital productivity. This is achieved by putting unborrowed funds into delta-neutral strategies such as base lending 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 from Aave & Beefy and 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.