A crypto backed loan platform with no liquidation events, no interest payments, and indefinite loan periods. Fundamentally long on the price of ada.

Yamfore is built on the fundamental fact that they are bullish on the longterm price of ada. On the Yamfore Cardano lending platform users deposit their ada, along with a certain amount of the platform’s token (ratios vary depending on the usage ratio of the platforms treasury funds for loans), as collateral to receive loans in stablecoins native to the Cardano blockchain.

The loan amount they receive is based on the value of ada the user deposits and the deposited platform tokens only are a security deposit for establishing the loan. These staked platform tokens are always returned in full to the user, whereas the 5% fees for using the platform is deducted from the user's ada.

The receiver of the loan also receives an NFT that represents their ownership of the deposited collateral and can trade this NFT on secondary NFT marketplaces. The loanee does not need to make any interest repayments on their loan and their loan term is indefinite. How is this possible?

A 5% Loan Fee and Staking Rewards are The Loan’s Interest

When a loanee wants to collect their loan they return the NFT representing their loan to the platform and the platform checks that the value of the locked ada collateral currently equals 105% of the total loan value.

The platform then removes this value from the user’s ada collateral before returning the remaining collateral ada and all their staked platform tokens to the wallet that returned the NFT to the platform.

So the platform takes 5% of the value of the loan amount, in ada, as a part of the fee for the loan. It also keeps all the staking rewards accumulated by the ada collateral whilst it was in the platform's custody.

The user’s ada collateral is never liquidated, regardless of market price action. If ada price is not high enough for the collateral to equal 105% of the loan's value when the user wants to withdraw it the user can chose to pay up the deficit to release their collateral. Note that if this is the case they’ll only be returned their deposited platform token, all the ada will be kept by the platform to pay off the loan amount.

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