What Is Proton Loan (LOAN)? Complete Guide & Review About Proton Loan

What Is Proton Loan (LOAN)?

Proton Loan is a new decentralized lending market built on the Proton blockchain. Utilizing the cross-chain capabilities of Proton wrapped xTokens, They makes it possible to deposit cryptocurrency into lending pools to earn interest, and to take collateralized loans from cryptocurrency pools. With support for BTC, ETH, USDC, DOGE, XPR and XMT, and with zero gas fees on the Proton blockchain, Proton Loan ensures DeFi lending remains accessible and affordable.

Proton Loan Coin opens up a new possibility for borrowing and lending against multiple blockchains that were not previously accessible on Ethereum or other blockchain protocols. By using a system of smart contracts powered by the Proton blockchain, users can request and fulfill loans using cryptocurrency without the need for a central mediator and without regard for the parent blockchain protocol of the requested asset.

The LOAN token will be used to vote on governance decisions for the Proton Loan platform, such as which tokens can be collateralized on the protocol to borrow and lend, as well as the interest rate curves for borrowing.

Proton Blockchain & Ecosystem

Proton is a new public blockchain and smart contract platform designed for both consumer applications and peer-to-peer payments. It is built around a secure identity and financial settlements layer that allows users to directly link their real identity and fiat accounts, pull funds and buy cryptocurrency, and use that cryptocurrency seamlessly in apps and other environments.

Proton Loan Coin was created to bridge the gap between traditional finance (TradFi) and DeFi, creating a way for blockchains to interact directly with bank accounts, vendors, merchants, and everywhere in between. Built to be fast and free, Proton imagines a world where push transactions minimize the risk for fraud, where currencies move freely between accounts, and where the type of money being used for a purchase is inconsequential.

Instant and free transactions

The Proton blockchain can currently handle 4,000 transactions per second (TPS). This is one of the faster-performing blockchains currently available, and allows the different types of transactions possible on Proton to happen simultaneously. From rapid microtransactions, to focused authorizing requests, Proton’s TPS expands its potential use cases.

Transactions for end-users are always free. Proton doesn’t have miner or gas fees, validators get rewarded in XPR for validating transactions.

Universal names

Proton Loan Coin uses a system of human-readable @names in place of confusing wallet addresses to make everyday use of Proton products easier. An @name is a unique namespace that works across multiple payment providers, identity verifiers, and payment transmitters. Gone are the days of entering your bank password or credit card number online; crypto and fiat wallets alike now interact as one network through the integration of the Proton blockchain.

Beyond being an applications platform with a unified identity model, the new Proton blockchain was designed to allow websites and apps to push payment requests directly to Proton-compliant wallets. As a result, users can leverage their unique @name when doing any type of transaction, eliminating the need to memorize or carefully copy wallet addresses that are complex and prone to mistakes.

Proton Swap

Proton Swap is a decentralized exchange that allows users to instantly swap Proton-based tokens between each other. Users also have the ability to convert supported tokens from different blockchains to Proton-based tokens and vice versa. For example, using Proton Swap, a user can swap XBTC for XUSDT, or convert ETH to XETH before trading it for XPR.

This allows seamless transactions between blockchains due to the speed and flexibility of the Proton blockchain. The more liquidity that exists between the pair of tokens being swapped, the lower the slippage will be.

Interest & Rewards

Lending

To view the interest APY of any asset, visit the markets page.

You can hover over the APY with your mouse (or finger on mobile) to see the full APY breakdown.

L-Tokens

Once you deposit a Proton wrapped X-token, for example XBTC, it becomes LBTC on Proton Loan, which represents your share in the lending pool. To simplify the experience for users, by default L-tokens are not withdrawn from the contract.

X-Tokens

When you wrap a cryptocurrency in Proton it becomes an X-token. X-tokens enjoy all of the benefits of the Proton Loan Coin blockchain, including:

• Instantaneous transactions
• No gas fees for end-users
• The ability to process micro-transactions
• Access to Proton Swap
• Easy integration into Proton dApps and projects

Tokenomics

The native token of the Proton Loan ecosystem is LOAN, which is used to reward both borrowers and lenders for using the platform, and govern the platform. Read more on governance here. Initial Distribution:

• XMT (MTL): Received 333 LOAN for every 1 XMT held
• Unstaked XPR: Receive 1 LOAN for every 1 XPR held
• Short Staked XPR: Receive 2 LOAN for every 1 XPR short staked
• XPR-USDC Liquidity: Receive 2 LOAN for every 1 XPR held in the XPR-USDC Proton Swap liquidity pool
• XMT-USDC Liquidity: Receive 666 LOAN for every 1 XMT held in the XMT-USDC Proton Swap liquidity pool
• 90 Day Long Stake: Receive 10 LOAN for every 1 XPR long staked for 90 days
• 365 Day Long Stake: Receive 30 LOAN for every 1 XPR long staked for 365 days

Governance

Individuals who hold LOAN tokens will be able to use them to vote for various decisions for the Proton Loan protocol. Governance will be deployed in time as the platform grows.

Governance decisions will include:

• Which tokens can be collateralized on the protocol to be borrowed or lent
• What the interest rate curves will be for borrowing tokens
• Other similar governance decisions as needed

In this way, the users of Proton Loan can use their LOAN tokens to steer the direction of the protocol, shape it to meet their needs, and exercise community control over this DeFi platform.