What is Larix The First Metaverse Based Finance Protocol on Solana [Solana Series]

Michael  0:00  

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Hey, welcome to today’s podcast. Hey, I wanted to give you just an update. Check out the how to guides that we recently released on our website newtocrypto.io Now we have step by step how to guides and they’re available in there for some of the most popular crypto wallets and my team and I are adding more soon, so be sure to check those out. Without further ado, we’re gonna jump into today’s episode. What is Larix the first Metaverse based finance protocol on Solana and this is another one in the Solana series that I’m doing. So what is Larix? Larix is a lending protocol built on the Solana of blockchain. The platform adopted a dynamic interest rate model and aims to create more capital efficient risk management pools. And there’s a broad selection of collateral types, crypto tokens, stablecoins, synthetic assets, NFTs and other kinds of assets that can be fully utilized in a safe way. Larix is security minded it’s a major priority for them. It’s the only lending protocol that gets reviewed by a reputable smart contract auditor, and this was done in August of 2021. Okay, let’s break down some of the benefits and features. Let’s break down the dynamic interest rate Larix adopts a dynamic interest rate model to manage liquidity and avoid bank run when depositors need to withdraw from the pool. 

Liquidity pools across different tokens are an essential part of Larix. They carefully designed interest rate model is created to incentivize both borrowers and lenders by rewarding them with Larix tokens. And let’s break down the asset risk: to mitigate asset risk, Larix does not accept crypto tokens with a market capitalization of under 10 billion lenders and suppliers of assets generate and earn an annual percentage yield as liquidity pool generates interest bearing opportunities to assets. In addition, lenders and suppliers qualify to earn the protocol token LARIX that’s the ticker symbols L-A-R-I-X through what they refer to as mining. This process can be attributed to a portion of token distributions that rewards protocol users for their activity on the platform. Once assets are supplied, users can choose to allocate as collateral which can then be used to borrow against. So currently, the total value locked with DeFi products has reached an astounding level, and it continues to grow throughout the entire industry. In the DeFi section. At Larix, they focus on the risk assessment uniquely attributed to supporting crypto tokens. Larix aims to standardize higher risk management practices within the DeFi ecosystem and takes into consideration the overall market, smart contracts and counterparty risks. 

So let’s break down the low fees and high speeds. The fees of trading Larix are much lower than other platforms, and this is due to the usage of it on the Solana blockchain. Solana is a scalable, affordable, decentralized network that allows quick transactions and healthy cryptocurrency market growth. Definitely check out my episode that I did on Solana if you have not so you can learn all about Solana. Let’s go over the governance. It has a DAO will be introduced to Larix through voting and governance tokens. Critical matters such as changing mortgage factors, adding or removal of collateral tokens and other things can be decided through this DAO, and they do proposal voting. Let’s break down the cautiously selected collaterals: in response to multiple flash loan attacks and malicious market manipulations, the collaterals will be selected cautiously and parked in several isolated pools (in clusters that is) according to underlying asset risk profiles. This is a more optimal way to control platform risk and protect both borrowers and lenders. I also want to break down the dual mining integration with Raydium. Larix has announced that it will be mining on the Raydium blockchain in addition to lending. Larix dual mining was released on October 8th 2021. 

And Larix has been released on mercurial, allowing users to trade Larix on the platform and paving the way for potential collaboration between the two groups in the future. Also, I want to break down the mSOL integration the company recently partnered with mSOL so that’s a lowercase m and then SOL. And they did this partnership with marinade which means Larix supports the deposits and lending of mSOL, as well as offering Larix rewards for those transactions. Currently, Larix rewards for mining mSOL are offered as collateral assets regarding who founded the project and the team members, not too much is known and is available about the team. The only team member known publicly is the CMO known as Dimmi, or Dimz. Let me break down the LARIX token for you: LARIX is the token on the platform and has a maximum supply of 10 billion tokens, and they’re allocated to mining and platform users foundation and treasury functions for the team and investors. The platform token is added to give users an extra value added utility that will be used mainly for DAO governance. 

In an interview with the CMO Dimmi revealed that depending on the total circulating supply growth, they could consider buying back supply that is from the open market. And the motivation behind a buyback would stem from the ecosystem expansion within Solana which is actually growing really fast. So as for a burning mechanism, Dimmi said that they possibly will start to consider this at later stages of the project. So users can generate LARIX tokens in the platform via the mining function, or they can buy the token on exchanges. I hope that today’s episode has provided a better picture for you as to what his Larix, definitely like and subscribe to the podcast and head over to the website and check out the How to Guides. If you would like to reach out to me, you can email me at show@newtocrypto.io. And this is a shout out to Anna, one of our loyal listeners who recently contacted us and gave us some feedback as to what type of episodes that she would like to hear. So thank you, Anna for that and a shout out to you. And tune in here tomorrow for a very special episode. Until then, make it a great day.

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