Nexon Finance is a decentralized lending protocol that offers low risk and capital efficient solutions for crypto users. Nexon Finance is built on zkSync, a layer-2 scaling solution that leverages zero-knowledge proofs to achieve high throughput, low latency, and low fees on Ethereum.
In this article, we will introduce some basic information about Nexon Finance and guide you through the steps of using its dapp.
What is Nexon Finance?
Nexon Finance is a protocol that allows users to lend and borrow crypto assets without relying on external oracles or liquidity providers. This reduces the risk of price manipulation, flash loan attacks, and liquidity crunches that plague many existing lending protocols.
Nexon Finance also optimizes the collateral efficiency by using over-collateralized pools, which enable users to borrow more with less collateral. Moreover, Nexon Finance offers dynamic interest rates that adjust according to supply and demand, ensuring fair and optimal returns for lenders and borrowers.
Nexon Finance is powered by zkSync, one of the most secure ZK rollups with instant and gasless transactions on Ethereum. This means that users can enjoy a fast and smooth user experience without paying high gas fees or waiting for confirmations.
How to Use Nexon Finance?
To use Nexon Finance, you need to have a web3 wallet such as MetaMask or WalletConnect that supports zkSync. You also need to have some ETH and ERC20 tokens that are supported by Nexon Finance, such as USDC, DAI, WBTC, etc.
The first step is to connect your wallet to the Nexon Finance dapp (https://app.nexon.finance). You will see a dashboard that shows your lending and borrowing positions for different assets. You can also switch between dark mode and light mode according to your preference.
The next step is to deposit some tokens into the protocol. To do this, you need to click on the “Deposit” button on the top right corner of the screen. You will see a pop-up window that allows you to select the token and the amount you want to deposit. You will also see the estimated gas fee and the transaction details. After confirming the transaction, you will need to sign it with your wallet.
Once your deposit is confirmed, you will see your balance updated on the dashboard. You can now start lending or borrowing tokens on Nexon Finance.
To lend tokens, you simply need to click on the “Lend” button next to the token you want to lend. You will see a pop-up window that shows you the current supply APY (annual percentage yield) and the available liquidity for that token. You can enter the amount you want to lend and click on “Lend”. You will need to sign another transaction with your wallet.
Once your lending transaction is confirmed, you will start earning interest on your lent tokens. You can see your interest accrual on the dashboard. You can also withdraw your lent tokens at any time by clicking on the “Withdraw” button next to the token you want to withdraw.
To borrow tokens, you need to have some collateral deposited in the protocol. You can click on the “Borrow” button next to the token you want to borrow. You will see a pop-up window that shows you the current borrow APY and the available liquidity for that token. You can enter the amount you want to borrow and click on “Borrow”. You will need to sign another transaction with your wallet.
Once your borrowing transaction is confirmed, you will see your borrowed balance and your collateral ratio on the dashboard. You can repay your borrowed tokens at any time by clicking on the “Repay” button next to the token you want to repay.
You should always keep an eye on your collateral ratio, which is calculated as (collateral value / borrowed value) * 100%. If your collateral ratio falls below a certain threshold (currently 110%), your position will be liquidated by the protocol. This means that your collateral will be sold at a discount to repay your debt. To avoid liquidation, you should either repay some of your debt or deposit more collateral.
Conclusion
Nexon Finance is a low risk and capital efficient lending protocol that offers a fast and smooth user experience on zkSync. By using Nexon Finance, you can lend and borrow crypto assets without relying on external oracles or liquidity providers. You can also optimize your collateral efficiency and enjoy dynamic interest rates.