Reload Finance
The DeFi Refinancing Protocol
Introduction
Reload Finance is revolutionizing the DeFi borrowing landscape by offering borrowers a seamless way to refinance their loans and secure better rates without the burden of paying back the initial debt.
In the dynamic world of decentralized finance (DeFi), borrowers often face fluctuating interest rates due to high volatility, leading to unexpected and higher costs. Reload Finance leverages flash loan technology to facilitate loan refinancing without requiring borrowers to repay their original debt.
The DeFi borrowing challenges
The DeFi borrowing and lending market currently exceeds $30 billion and is rapidly expanding. There is more than $5B monthly borrowing volume. With more than 20 borrowing and lending providers offering over 200 pools across major blockchain networks, borrowers have opportunities to secure lower interest rates. However, they often face significant challenges in accessing these better rates.
After thorough market research, we've identified three main challenges DeFi borrowers encounter:
Volatile Interest Rates: Fluctuating rates result in borrowers facing higher costs than anticipated. Often, borrowers start with low interest rates, only to see them rise significantly due to market volatility. In many cases, borrowers find themselves with interest rates five times higher than initially expected.
Locked-in Debt: Once borrowed capital is invested, borrowers cannot switch to better protocols or pools offering lower rates. Unable to repay the borrowed amount, they remain exposed to increasing interest rates in their current pool.
Lending Aggregators' Focus: Many DeFi protocols emphasize maximizing APYs on deployed capital rather than minimizing APRs for borrowed capital, leaving borrowers without tools to manage their interest rates effectively.
The refinancing protocol
In a healthy and sustainable DeFi market, where borrowing and lending pools continue to grow, a refinancing protocol is essential to democratize supply and demand.
To tackle these challenges, Reload Finance is developing the first refinancing protocol in the DeFi market using flash loan technology. The refinancing protocol enables borrowers to seamlessly refinance their existing loans, unlocking access to better financing conditions from other pools without repaying the borrowed amount.
How It Works: Borrowers can refinance their loans in one transaction using our protocol's built-in flash loans. Additionally, in the same transaction, borrowers can swap their collateral and/or the borrowed asset. After the user selects the best loan alternative, all the magic happens behind. The execution happens in 3 steps:
The protocol is getting a flash loan for free to pay back the debts of the user.
Then the collateral of the user is released from the initial pool and moved to a new pool.
A new loan is taken from the new pool to pay back the flash loan and the remaining amount is transferred to the user's wallet.
All these operations are executed in one single transaction. In this way, the refinancing protocol empowers the borrowers to freely move or swap their collateral from one pool to another.
Key Features:
Switch Borrowing and Lending Pools: Seamlessly switch between pools to secure the lowest interest rate.
Swap Collateral: Swap the locked collateral (e.g., from WETH to WBTC) in one transaction without repaying the debt.
Swap Borrowed Asset: Swap the borrowed asset (e.g., from USDT to DAI) in one transaction without changing the collateral or repaying the borrowed asset.
Borrowers can mix and match these features to maximize flexibility and access the best refinancing conditions for their loans.
The Reload Finance will be integrated with all borrowing and lending platforms on all the relevant chains
Reload Finance Services
Reload Finance offers 3 services
dApp - is the refinancing service providing a web dapp where borrowers can manually connect their wallets, check the loans they have, explore other loan offerings having better financing conditions and decide which one to use for refinancing.
Automate - it’s the service that automates the loan refinancing every time a better interest rate appears in the respective market. In this way, the borrowers are automatically having the lowest possible APY.
Arbitrage - it’s the service that offers an arbitrage strategy to make a profit from the differences in APY between different pools. A user can borrow assets from a pool with the lowest interest rate and lend them to another pool with the highest interest rate.
Reload Finance is available on any EVM chain and Solana, making available the multi-chain usage. Also, it will implement the cross-chain functionality to enable new opportunities.
Reload Finance includes a borrowing aggregator that scans all the pools in real time so the users can know at any moment what’s the best option for them. It also includes an alerting system that notify the user any time a better option is available, based on its preferences.
The business model of Reload Finance relies on fees. For every refinance a very small service fee is applied. The more the services are used the more fees are collected. The collected fees will be used to cover operational costs and increase the valuation of the RLD token.
Before releasing on main-nets, Reload Finance will be audited by two independent auditors who will carefully check the smart contracts, back-end and front-end of the platform.
Tokenomics
Reload Finance issues 100.000.000 $RLD Tokens as an ERC20 token on Ethereum Chain, as a utility token.
The token has the following utility:
holding a specific amount of $RLD, the users can get access to premium refinancing services
platform's users get lower service fees for higher and longer holdings
holders can stake it for receiving 50% of the generated profit
deflationary - buy and burn with 50% of the generated profit
The token distribution and allocation are summarised in the table below:
Conclusions
Reload Finance is set to transform DeFi borrowing by offering borrowers the tools they need to navigate interest rate volatility and optimize their loans effortlessly. With our protocol, borrowers can refinance seamlessly, accessing better rates and conditions without the constraints of their original debt.
Join us in redefining the DeFi borrowing landscape with Reload Finance.
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