Lend

As the Bitcoin-Ordinals ecosystem grows, it is not enough to rely only on the amount of user funds within the ecosystem, we need to link other chains of capital into Ordinals, and BumbSwap is the bridge between the two.

Multichain Lend Market With the development of multi-chain ecosystem, cross-chain has become a necessary need. The previous cross-chain lending model is that the user first pledges and borrows assets on one chain, and then bridges the borrowed assets to the target chain, both steps need to be done manually by the user.

BumbSwap solves this problem by combining two steps into one, reducing user effort.

Deposits and borrow

Lender

For example, users can deposit idle $ORDI (eORDI, aORDI, bORDI) into the Ordinfinty liquidity pool and these tokens will become available for lending. Anyone who deposits tokens into the pool and provides liquidity will receive an additional $ONFI in return.

Borrower

Borrowers need to first deposit sufficient collateral in the liquidity pool before they can lend funds from the liquidity pool. For example: A has pledged $ORDI in the liquidity pool, then it can lend mainstream assets backed by the protocol on the target chain. For example (BTC, ETH, USDT)

BumbSwap lending is over collateralized and lending rates will automatically adjust to market supply and demand, and will increase if there are fewer assets to lend.

The interest rate is a regulator used to balance borrowing and lending, and it is generally related to the utilization rate in the pool.

When money is plentiful: low interest rates to encourage borrowing. When money is scarce: high interest rates to encourage debt repayment and additional supply.