YamforePrice

(CBLP)

Yamfore distinguishes itself by offering crypto-backed loans without the typical risks of margin calls or indefinite loan terms. Unlike many protocols, it does not require ongoing interest payments to prevent liquidation. Instead, interest accrues over the loan's lifetime and is paid upon collateral release. All loans are directly funded from a stablecoin treasury, providing a distinct operational model within the decentralized lending landscape.

The CBLP token is integral to the Yamfore protocol, serving multiple key functions. It is utilized as a security deposit for loans, initially forming 50% of the collateral alongside ADA, facilitating loan creation. CBLP also grants holders governance rights, allowing community participation in decisions regarding loan parameters. Furthermore, a flat fee, set at 20% of the loan value, is charged in CBLP at the time a loan is created, contributing to the protocol's mechanics.

Yamfore loans feature a fixed interest rate, but critically, borrowers are immune to margin calls and liquidation risk, offering significant stability. Interest accrues throughout the loan's duration and becomes due only when the borrower decides to release their collateral. Unpaid interest does not trigger liquidation of the underlying assets. An additional borrower obligation is the forfeiture of their ADA staking rewards to the protocol, which contributes to the system's overall health and sustainability.

The Yamfore protocol operates with an internal treasury that holds a substantial portion of the total CBLP token supply, specifically 50% or 500,000,000 CBLP tokens. This treasury is fundamental as all loans provided by the protocol are directly funded from its stablecoin reserves. To manage and potentially replenish these reserves, continuous CBLP auctions are conducted. These auctions are designed to continue until the treasury's stablecoin holdings are fully utilized or redistributed, ensuring a dynamic funding mechanism.

Yamfore is currently in an active development phase, having already released a Version-1 testnet for public evaluation and feedback. The project has clearly outlined plans for its near future, which include the imminent release of a Version-2 testnet. Following the successful deployment and testing of Version-2, the team aims to launch the mainnet, marking the full operational deployment of the Yamfore decentralized non-custodial lending protocol on the Cardano platform.

Security is a critical concern for any decentralized finance protocol, especially one involving lending. While the general importance of robust security audits and vulnerability mitigation is emphasized for Web3 projects, specific information regarding the audit status of Yamfore's smart contracts was not readily available in the provided search results. This suggests that the project's security audit status is a key area for further inquiry and transparency to ensure the integrity and safety of its protocol for users.