Take.finance: Open Lending Protocol Redefining the Decentralized Finance Space

“Blockchain technology is the future of finance”

About a decade ago, this statement leaned more towards wishful thinking, and you’d probably get more eye-rolls and blank stares than “hear, hear!” — and justifiably so. Back then, the first successful implementation of blockchain technology (i.e., Bitcoin) remained shrouded in complete mystery.

Decentralized finance, a fast-growing industry, now fosters a booming ecosystem of lending and staking dApps, DEXes, prediction markets, oracles, derivatives, investments, and stablecoins to name a few. According to DeFi Pulse, the DeFi space is now worth more than $12 billion dollars, with over a hundred protocols launched already — all this in the space of three years!

Take.finance is an open permissionless DeFi protocol offering a suite of digital financial services to users in a trustless, decentralized environment. Launched on the Ethereum blockchain, Take.finance allows you to earn interest on your deposits and create collateralized debt positions (CDPs) by using your crypto assets as collateral. The project itself is a fork of the Compound protocol with major improvements to the tokenomics system.

Take.finance was created to help investors like you realize maximum profits from lending, borrowing and liquidity farming with minimal slippage and low fees.

Through the protocol, liquidity providers can earn better rewards with various tokens. To start lending, you simply supply your crypto assets to the lending pool. Other users can then borrow from the pool, instead of matching directly with a lender. As a result, the interest earned by liquidity suppliers is a function of the current demand and supply in the pool.

The initial liquidity for the Take.finance pool on Uniswap is 700 ETH and 70,000 TAKE at the rate of 0.01 ETH/TAKE or at the last price bonding curve and 70% of collected ETH.

The Take protocol supports lending and borrowing with popular DeFi tokens like wBTC, Dai, USDT, USDC, ETH. Deposited crypto assets on Take.finance are converted to TakeTokens, stablecoins which represent the token equivalent of an underlying crypto asset on the platform. TakeTokens are pegged 1:1 to their cryptocurrency equivalent, and they’re used as collateral for taking out loans and to accumulate interest on deposits. Say, you lend 100 ETH to the liquidity pool, you’ll receive 100 TakeETH. Your liquidity rewards will be accumulated in TakeETH and added to your balance once you withdraw your funds from the pool.

You can borrow up to 75% of your deposited crypto assets, an amount set by the collateral factor. The collateral factor works similarly to a credit score in the traditional finance industry. It helps the system to determine the maximum percentage of your TakeTokens’ value you’re allowed to borrow, depending on the underlying crypto asset you deposited as collateral.

There is no loan term, and you can deposit or repay your loan at any time. However, if your debt becomes undercollateralized, anyone can liquidate your debt position. Keep in mind that there’s a 5% commission for liquidating undercollateralized assets, so there’s enough incentive for other users to do that, once the value of the borrowed amount exceeds the collateral value.

TAKE is the native token of the Take.finance ecosystem, where it’s used to distribute liquidity rewards and participate in governance.

Holders of popular DeFi tokens will be able to earn by depositing their assets on Take.finance to receive TAKE rewards and deposit interest. The interest rate is variable and ranges from 20% to 200% APY, depending on market conditions. A total of 500k TAKE tokens will be distributed to liquidity providers. The liquidity rewards model is based on the following formula:

[Supply + Borrow value] / [Total supply + Borrow Value on platform] * Total TAKE distributed per day

Take.finance uses deflationary tokenomics to stabilize the price of the TAKE token during periods of huge volatility. As an anti-dump measure, 10% of a user’s TAKE tokens will be burned if the user decides to sell their tokens on Uniswap. This is a temporary measure to prevent inflation until the price of TAKE is stable. In addition, all trading fees in TAKE will be sent back to buyback at Uniswap and burnt. Since the value of TAKE will only increase over time, users will continue to earn better liquidity rewards.

With a growing ecosystem of decentralized financial products and several features already planned for future release, Take.finance isn’t just another DeFi protocol but rather, an innovative project to surely watch out for.