Liquidity pendulum
We're the first who providing DeFi pools for a digital bank.
Last updated
Was this helpful?
We're the first who providing DeFi pools for a digital bank.
Last updated
Was this helpful?
WFI Liquidity Pendulum
To use the non-custodial card solution, users are required to provide WFI as collateral to guarantee the transaction authorization for the card.
If a user does not have or prefers not to use WFI, they can use any other coin in their wallet and borrow WFI from Nodes that provide liquidity through pairs like USDT-WFI, BNB-WFI, etc. These Nodes earn rewards from the immediate borrowing interest generated with each transaction.
More Swaps = More Incentives: As more swaps occur, liquidity providers (LPs) are incentivized to add liquidity. With more LPs, the borrowing rate decreases, making the service more affordable for end users. This dynamic creates a liquidity "black hole" that attracts both users with cheaper fees and Nodes with increased rewards.
The result is a "liquidity pendulum" where non-custodial card users are encouraged to provide more assets for exchange, while node operators are motivated to supply more WFI. Both sides benefit from the expanding liquidity available in the system.
