Wing Finance is a blockchain project that provides credit-based decentralized finance (DeFi) services. The project is a decentralized platform and allows communication between cryptocurrency lending services and DeFi projects. The platform works as a Decentralized Autonomous Organization (DAO). Users can participate in the management, product design and operations of the platform.
What is Wing Finance (WING)?
Wing is a decentralized credit-based platform designed for crypto asset lending and cross-chain communication between decentralized finance (DeFi) projects. The project aims to make cryptocurrency lending services more inclusive through a credit rating module that eliminates the need for large collateral. Wing is a decentralized autonomous organization (DAO) that allows users to participate in decision-making, product design, and operations.
Wing uses decentralized governance combined with a risk control mechanism to improve relationships between lenders, borrowers and guarantors. This has led to an improvement in the number and accessibility of DeFi projects using the platform. One of Wing DAO’s goals is to address the over-assurance issue plaguing the DeFi industry.
The platform allows the creation of new blockchain projects and focuses its efforts on a decentralized and autonomous government community. In response to the issues faced by other DeFi projects, Wing DAO built a credit-based DeFi protocol that runs on the Ontology (ONT) blockchain. The protocol is fully controlled by users and does not require third parties to confirm transactions.
Wing Finance Highlights:
- Support cross-chain collaboration and decentralized governance across a wide range of DeFi projects
- Introduce a risk control mechanism, promote a mutually beneficial relationship between borrowers, creditors and guarantors
- Break the barrier between DeFi and Traditional Finance through a decentralized credit system
How does Wing Finance (WING) work?
Wing allows users to set up a DAO proposal or become investors on the platform even without prior knowledge or interaction with the blockchain. Wing offers project developers the chance to receive crowdfunding by submitting proposals. Investors have the opportunity to contribute to decision making and, in return, earn a share of future profits through smart contracts. Wing is built on the Ontology blockchain due to its ability to create collateral pools on different blockchains. Ontology enables the digitization of new and existing assets.
Blockchain also has a feature called OScore, which is a credit scoring system. OScore assesses users’ loan/loan history and digital asset information. Platform users have full control over their accounts and can securely access their OScore to ensure data privacy.
Also, as borrowers need to trust their OScore data for loans, the collateral needed to borrow on the platform is reduced. In Wing’s inclusive pool, users are encouraged to maintain a good credit score. Users who pay their loans on time can enjoy lower interest rates on their loans. Some Wing-like DeFi platforms include uniswap and AAVE.
collateral support
As the platform is powered by Ontology, it can support a collateral pool that contains a variety of cryptocurrencies, even if they are on different blockchains. This is known as ‘cross-chain’ support. Through Ontology’s decentralized identity and data functions, any asset can be digitized.
Decentralized and automated credit assessment
Smart contracts drive the platform’s decentralized and automated credit assessment function. Decentralized identity and data protocols enable an automated system for verifying and evaluating credit data that does not require third-party intervention. Also, this is where the OScore system is.
Credit-Based Loan Characteristics
Lower collateralization requirements
As borrowers can now rely on their OScore data to make loans, collateral requirements can be further reduced if not fully canceled.
Asset scanning
It’s easier to digitize assets on the platform because they can now be attached to credit elements of the chained data that OScore can gather.
User Sovereignty
The platform does not need third parties to perform user checks. Instead, the credit elements used to tag users work through decentralized identifiers (DID), which are verifiable and decentralized. Smart contracts also ensure that reviewing these elements no longer requires manual intervention.
Wing Finance Project Products
Flash Pool
Flash Pool is the first loan product on Wing. Assistance in lending financial assets and introducing an innovative form of Insurance Pool to reduce property risk. Users earn WING in the Flash Pool by borrowing, lending and depositing in the Insurance Pool. It currently supports assets, but is not limited to ONT, ETH, wBTC, USDT, and DAI, and will support more assets in the future.
Anyone can borrow cryptocurrencies from Flash Pool; just meet the prescribed collateral requirements for the loan. To earn WING rewards, they need to lock 3% of their Tokens WING first. To ensure that potential risks are covered on the platform, users can also be part of the platform’s insurance pool. Users just need to lock their WING tokens in the flash pool for at least 3 days.
IF Pool
In the near future, Wing will launch the IF Pool, a credit-based lending product, where users with OScore can deposit assets worth 80% or more of the value of borrowed assets.
Wing DAO
Wing DAO is an autonomous decentralized organization where community members are naturally encouraged to submit proposals for decentralized financial services. Communities have the right to make independent decisions about product launches based on community participation and autonomy in product application and product termination and disposal rules.
The community can vote on protocol parameters in Wing’s three main pools. These are the loan pool, loan pool, and risk control margin pool. Some examples of roles that may be subject to a community vote are the type of assets that can be lent, minimum and maximum loan and loan amounts, and other risk control requirements. Users only need to have at least 1 WING to participate in community governance. With this, they have the right to submit proposals on the services of the platform.
Wing: NFT pool
Wing’s NFT pool adopts a peer-to-pool lending model: users can provide Ether (ETH) in the asset pool to provide liquidity to the loan pool. Providers can earn ETH interest from borrowers and pWING incentives – a variant of the Wing Finance (WING) ERC-20 protocol – from the pool. Users can borrow ETH when securing NFTs, and borrowers can earn interest-bearing pWING incentives.
Secured NFTs go into the secured NFT pool, and borrowers receive a corresponding working NFT. When calculating the health factor – that is, the numerical representation of the security of deposited assets in relation to the value of borrowed assets – and at liquidation, NFT prices are calculated from the minimum price, which means that buyers can buy the cheapest NFTs on the settlement market with 20% off.
NFT lenders must pay attention to the collateral value to ensure the safety of their assets. The Wing NFT pool calculates the time-weighted minimum price to filter out OpenSea and LooksRare price fluctuations to optimize equity.
Insurance pooling mechanism explained
Wing’s insurance pooling mechanism sets it apart from other cryptocurrency lending platforms by ensuring the security of underlying assets for NFT lenders and the project as a whole. WING token holders can earn WING incentives by ensuring the security of the pool.
Similar to existing flash pools, the NFT pool leverages Wing’s insurance pool to protect lenders from market volatility that can lead to under-secured loans – a risk management feature absent in much of the decentralized finance space. (DeFi).
A new approach to unlocking value
The NFT pool offers users a new method to unlock the value of their NFTs without having to sell them and opens up DeFi loans and loans to many new users, allowing them to use their NFT portfolios as loan collateral. Wing wants to lead the NFT escrow space to revolutionize its burgeoning market as one of the first DeFi protocols supporting this lending and borrowing mechanism.
Wing is deploying NFT pool on-chain Ethereum to facilitate access and plan for interoperability across chains in the near future. The NFT pool will eventually leverage other blockchains such as Polygon and Solana, to help Wing become a credit-based cross-chain DeFi platform. Wing’s Decentralized Autonomous Organization (DAO) may also propose and vote to further expand its NFT support to include additional top-tier NFT collections.
The NFT pool participation mechanism is designed to be as simple and accessible as possible for lenders and borrowers. Once users join Wing DAO, other NFT holders can vote on projects they support with WING tokens.
WING token
The WING coin is a token that serves as the native cryptocurrency of the credit-based DeFi project. WING is a governance token, in addition to being the platform’s native token. On the platform that works as DAO, WING owners can vote on decisions made regarding the future of the project. The maximum supply of the WING token is set at 5 million units. WING Finance users can make various transactions through WING. There is an outstanding supply of 2.720.049 WING coins.
Final Thought
The credit-based cross-chain DeFi lending platform is an innovative approach to providing more advanced solutions often found in the mainstream financial sector. With this approach, Wing Finance intends to strengthen capacity, reliability and confidentiality among its stakeholders. This not only helps users, but also has the power to revolutionize the entire DeFi ecosystem. Built on Ontology, which charges very low transaction fees, this is another advantage. This will attract more users as the platform starts to support more tokens.
