Introduction
Granary is a DeFi (decentralized finance) protocol that falls into the category of Lending Market.
Initially developed from the contracts of Aave V2 (protocol with proven security, see our article on Aave), Granary has been able to add its specificities and develop innovative strategies especially for Granary V2.
With a large community of users, the Granary team has forged an atypical image in the landscape of DeFi protocols.
Description of the Protocol
The Granary project, to date, has deployed its Lending Market on 7 different Blockchains:
- Fantom ;
- Avalanche ;
- Optimism ;
- Metis ;
- Arbitrum ;
- Binance.
It attracted more than $21 million in TVL (Total Value Locked – the total value of funds deposited in Smart-Contracts) across all blockchains, even before they had started issuing their Token ($GRAIN).
Granary offers several services to its users:
- Deposit cash (Lending) – This allows users to collect interest on cryptocurrencies made available to borrowers.
- Over Collateralized Borrowing – This allows users to borrow cryptocurrencies provided they have deposited a larger amount than borrowed.
- Flash Loan – This service is primarily for developers. It allows to borrow cash without depositing collateral in the protocol, provided that the loan and interest are repaid in the same block as the one where the loan was contracted. Since the duration of a block is a few seconds at most, the Flash Loan must be executed by a computer program.
- Revenue sharing – Part of the costs generated by the platform are redistributed to users, in addition some markets receive financial incentives (partnership with other projects), but also, with the upcoming Granary V2, the team has worked on innovative solutions to bring added value to their users.
History of Granary
During the previous year, the Granary platform has been able to develop its audience on social networks, its user base, create its own liquidation infrastructure and export itself on 7 different Blockchains. This growth was driven by the partnership between the Granary team and the Bytes Masons team (known for their Reaper platform).
The Byte Masons team made an early observation: one of the major problems of DeFi is the underutilization of cash reserves deposited in protocols.
In general, traders are advantaged by ample reserves that are little used (less impact on the price during a trade, less interest to pay on loans).
Liquidity providers, on the other hand, benefit from widely used reserves (better returns for their deposits).
Many protocols have attempted to resolve this dichotomy by incentivizing users to deposit cash through token issuance. As these tokens are inherently inflationary (high-emission tokens causing the price to fall), returns for users tend to fall over time and are not a sustainable solution.
The Byte Masons team has developed two innovative solutions to solve this problem: Reliquary and Ethos Reserve. The principle behind these solutions is to bring decentralized finance closer to traditional finance by using an active reserve management system.
Granary V2
Byte Masons and Granary have worked together to develop Granary V2.
Granary V2’s most important innovation is Nitro Pools, a technological breakthrough that unlocks the potential of underutilized cash reserves deposited in a protocol.
Nitro Pools allow the protocol to create added value for users. Thus, with V2, Granary will have the possibility to use liquidity reserves in Delta-Neutral strategies.
These strategies are intended to provide users of the platform with a competitive return without resorting to the issuance of an ultra-inflationary Token.
Version 2 of Granary also brings added value to its users through an in-house liquidation system. The protocol itself liquidates risky positions and redirects the profits generated by liquidations to users.
The Token $GRAIN
The Token $GRAIN is intended to be at the center of the Granary ecosystem.
Rather than choosing to issue a high-inflation Token diluting its owners; Granary’s strategy is different. The $GRAIN must be distributed over the long term, in addition, the returns generated by optimizing the use of the protocol’s reserves will be used to buy $GRAIN in order to redistribute it to users of the platform.
LGE
The $GRAIN is currently being implemented by LGE (Liquidity Generation Events – process of valuing a cryptocurrency by creating a liquidity pair that will be used by traders).
The $GRAIN LGE began on March 19, 2023 and is scheduled to last 2 weeks. Open to everybody, it allows investors to buy $GRAIN before it is available on the market.
For more information visit the website https://www.grain.sale/ .
It should be noted that the $GRAIN LGE is an innovation in itself, so it is the first multi-chain LGE (running simultaneously on 7 different Blockchains).
Airdrop
Granary users are eligible for an Airdrop (see our article on Airdrops).
The amount of Token distributed by Airdrop depends on the amount of cash provided as well as the length of time users have been active on the platform. These calculations are based on the period from 3/20/2022 to 10/30/2022.
Conclusion
Granary is an innovative Lending Market, having attracted a solid user base even before launching its Token.
The combination of the Granary and Byte Masons teams has made it possible to develop strategies based on innovative technologies.
The launch of the $GRAIN and the arrival of Granary V2 point to a promising future for the protocol.
You can find Granary on twitter: @GranaryFinance .
Discover the protocol on their website: https://granary.finance/ .
Participate in the LGE at: https://www.grain.sale/ .
We invite you to join their Discord: http://discord.gg/granary , the team responds quickly to questions, and their community is very friendly.