What is Nenofi?

Money Market Liquidity Protocol on Optimism 🔴

Nenofi is a money market liquidity protocol built on the Optimism network. At its core, it enables users to lend and borrow any type of asset in a permissionless manner. Our unique system uses isolated pools to make lending and borrowing more flexible and secure.

Key Features

Nenofi's distinguishing features include:

1. Isolated Lending Pools: Each lending pool in Nenofi operates independently, reducing the risk of bad debt accumulation and protocol contagion due to bad assets/collaterals

2. User Empowerment: Users are able to create their own borrowing and lending pool, tailoring collateral factors and interest rate models and so on to suit their needs.

3. Incentivized Participation (Liquidity Flywheel): More to come... 👀

Why Nenofi?

Established lending platforms like Aave and Compound utilize a shared pool lending mechanism where all assets share collective risk. This implies that if any one asset in the shared pool becomes insolvent or its value plunges to zero, the entire system suffers the repercussions.

TLDR: if one asset goes to zero, the whole system goes to zero

One stark illustration of this systemic risk occurred with a Compound fork during the LUNA and UST crash. In this incident, the value of LUNA fell rapidly, leading to significant debt accrual within the protocol. This debt was ultimately borne by depositors and lenders, causing significant losses.

Nenofi, by contrast, sidesteps such shared risk through its innovative, isolated lending structure. In Nenofi's system, risk is confined to individual asset pairs, insulating the entire platform from the failure of any one asset. This design provides a safer, more resilient environment for both lenders and borrowers. Further distinguishing Nenofi is its use of dynamic elastic interest rates. This feature is designed to motivate liquidity within a certain range based on supply and demand, hence maintaining a balance in the system.

In essence, Nenofi's design strive to provide a safer, more flexible, and inclusive lending environment, thereby distinguishing it from other DeFi lending platforms.