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What is Evolution Finance?

Evolution Finance is self-sustainable locked liquidity protocol and lending/borrowing platform where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion.

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Why Evolution Finance?

The Evolution Finance protocol has been audited and secured. The protocol is completely open-source, which allows anyone to interact with the user interface client, API, or directly with the smart contracts on the Ethereum network. Being open-source means that you are able to build any third-party service or application to interact with the protocol and enrich your product.

How do I use the service?

In order to use the service, you simply deposit your preferred asset and amount. After depositing, you will earn passive income based on the market borrowing demand. Additionally, depositing assets allows you to borrow by using your deposited assets as collateral. Any interest you earn by depositing funds helps offset the interest rate you accumulate by borrowing.

What is the cost of the service?

The platform has 2 types of fees. From borrowers, 0.00001% of the loan amount is collected on loan origination (only in V1), from which 20% is used for referral integrators and 80% is allocated in the protocol fund. From Flash Loans, a 0.09% is collected from the loan amount, from which 70% is redirected as extra income for depositors of the protocol and 30% is split using the same 20%/80% model of the origination fee. There are also transaction fees for Ethereum Blockchain usage, which depend on the network status and transaction complexity.

Where are my deposited funds stored?

Your funds are allocated in a smart contract. The code of the smart contract is public, open-source, formally verified, and audited by third-party auditors. You can withdraw your funds from the pool on-demand or export a tokenised (aTokens) version of your lender position. aTokens can be moved and traded as any other cryptographic asset on Ethereum.

Is there any risk?

No platform can be considered entirely risk-free. The risks related to the Evolution Finance platform are the smart contract risk (risk of a bug within the protocol code) and liquidation risk (risk on the collateral liquidation process). Every possible step has been taken to minimize the risk as much as possible-- the protocol code is public and open source and it has been audited. Additionally, there is an ongoing bug bounty campaign live and running. You can find additional risk and security related information in the risk framework and security and audits sections.

Evolution Finance (EVN) token

EVN is used as the centre of gravity of Evolution Finance governance. EVN is used to vote and decide on the outcome of EVN Improvement Proposals (EVNIPs). Apart from this, EVN can be staked within the protocol Safety Module to provide security/insurance to the protocol/depositors. Stakers earn staking rewards and fees from the protocol. Documentation on tokenomics and governance is available in the flash paper and with further detail in the full documentation. Feel free to join the discussion in the governance forum.

Glossary

If you are unsure about any specific terms feel free to check the Glossary.

Additional information and resources about Evolution Finance

Feel free to refer to the White Paper for a deeper dive into Evolution Finance mechanisms. Developers can access the Documentation for a technical description of the Evolution Finance decentralized lending pool protocol. For detailed risk analysis, please visit the risk framework.