How DeepFlow Works
DeepFlow is built on a streamlined borrowing and lending model that makes it simple for users to earn yield or access liquidity. The protocol operates in 7-30 day cycles, enabling dynamic rate adjustments, flexible participation, and fast repayments. It’s powered by smart contracts and enhanced by an AI rate engine that ensures fair, real-time pricing for every loan.
Let’s break it down into three core flows:
Let’s break it down into three core flows:
a. Lending Flow
Lenders deposit stablecoins (e.g., USDC or USDT) into DeepFlow’s lending pools to earn yield from interest paid by borrowers.
1. Deposit Capital: Lenders deposit stablecoins into a designated pool.
2. Earn Interest: Funds are lent out automatically to borrowers who collateralize theiraltcoins.
3. Reclaim Funds: At the end of each 7- 30 day lending cycle, lenders can withdrawfunds or auto-roll into the next cycle.
4. Risk Buffer: In the event of borrower default, collateral is liquidated to reimburse thepool, with AI-driven pricing to minimize losses.
1. Deposit Capital: Lenders deposit stablecoins into a designated pool.
2. Earn Interest: Funds are lent out automatically to borrowers who collateralize theiraltcoins.
3. Reclaim Funds: At the end of each 7- 30 day lending cycle, lenders can withdrawfunds or auto-roll into the next cycle.
4. Risk Buffer: In the event of borrower default, collateral is liquidated to reimburse thepool, with AI-driven pricing to minimize losses.
Why Lend on DeepFlow?
1) Earn real yield from underused markets (altcoins)
2) Short term liquidity option (7-30 day lockups)
3) Additional rewards for active participation
2) Short term liquidity option (7-30 day lockups)
3) Additional rewards for active participation
b. Borrowing Flow
Borrowers use their digital assets as collateral to take out 7-30 day loans in stablecoins.DeepFlow’s AI model calculates loan terms in real time based on asset volatility, trust score,and liquidity.
1. Connect Wallet & Select Asset: Users choose an altcoin they wish to collateralize.
2. Receive Dynamic Terms: The AI engine assesses risk and displays loan amount, interest rate, and fees.
3. Confirm & Receive USDC: Once accepted, the user receives USDC or USDT andlocks their asset in the protocol’s vault.
4. Repay or Rollover: After 7-30 days, the user can repay the loan with interest toreclaim their asset, or opt to renew under new terms.
1. Connect Wallet & Select Asset: Users choose an altcoin they wish to collateralize.
2. Receive Dynamic Terms: The AI engine assesses risk and displays loan amount, interest rate, and fees.
3. Confirm & Receive USDC: Once accepted, the user receives USDC or USDT andlocks their asset in the protocol’s vault.
4. Repay or Rollover: After 7-30 days, the user can repay the loan with interest toreclaim their asset, or opt to renew under new terms.
c. Liquidation Process
DeepFlow takes a fair, transparent approach to liquidations — ensuring that lenders are protected while giving borrowers clear expectations.
1. Missed Repayment: If a borrower fails to repay within the 7-30 day window, the loanis considered in default.
2. Trigger Liquidation: The collateral is flagged and moved to a 48-hour liquidationwindow.
3. Proceeds Distribution: Lenders are reimbursed from the liquidation sale, and anyremaining funds (after fees) are returned to the borrower.
4. Penalty Mechanism: A penalty fee (e.g., 10–15%) is applied to discourage defaultsand protect lenders.
DeepFlow’s AI model plays a key role in ensuring fair market valuations and helpingminimize bad debt across the platform.
1. Missed Repayment: If a borrower fails to repay within the 7-30 day window, the loanis considered in default.
2. Trigger Liquidation: The collateral is flagged and moved to a 48-hour liquidationwindow.
3. Proceeds Distribution: Lenders are reimbursed from the liquidation sale, and anyremaining funds (after fees) are returned to the borrower.
4. Penalty Mechanism: A penalty fee (e.g., 10–15%) is applied to discourage defaultsand protect lenders.
DeepFlow’s AI model plays a key role in ensuring fair market valuations and helpingminimize bad debt across the platform.