EARN Protocol

EARN Protocol: Enhanced Autonomous Rewards Network

EARN Protocol is the Enhanced Autonomous Rewards Network, now live on PulseChain. It is a decentralized borrowing protocol that allows users to draw interest-free loans using $PLSX as collateral. These loans are disbursed in PXDC, a USD-pegged stablecoin, and must maintain a minimum collateral ratio of 110%.

Key Features

Decentralized Borrowing

EARN Protocol's primary function is to enable decentralized borrowing. Users can leverage their $PLSX holdings to secure interest-free loans in PXDC. This mechanism provides an efficient way to access liquidity without selling assets, thereby allowing users to maintain their investment positions.

Stability and Security

Loans on the EARN Protocol are safeguarded by a multi-layered security approach:

• Stability Pool: Contains PXDC to cover under-collateralized loans.
• Guarantors: Other borrowers act collectively as guarantors of last resort, ensuring the system's stability.

Non-Custodial and Immutable

EARN Protocol is designed to be non-custodial, meaning users retain full control over their assets. The protocol is also immutable and governance-free, ensuring that once deployed, it cannot be altered. This provides users with a trustless environment where the rules are transparent and unchangeable.

The Collateral Mechanism

Using $PLSX as Collateral

To secure a loan, users must lock up $PLSX tokens. The protocol requires a minimum collateral ratio of 110%, meaning the value of the collateral must be at least 110% of the loan amount. This low collateral ratio is one of the attractive features of the EARN Protocol, providing greater borrowing power compared to many other platforms.

PXDC Stablecoin

Loans are issued in PXDC, a stablecoin pegged to the US Dollar. This stablecoin ensures that borrowers receive a consistent value, protecting them from the volatility commonly associated with cryptocurrencies.

Security Measures

Stability Pool

The Stability Pool is a critical component of the EARN Protocol's security architecture. It holds PXDC to absorb the debt from under-collateralized positions. When a borrower's collateral falls below the required ratio, the Stability Pool covers the shortfall, ensuring that the system remains solvent.

Community Guarantors

In addition to the Stability Pool, other borrowers act as guarantors. This collective approach distributes risk across the network, enhancing the protocol's robustness against individual defaults.

Integration with POWERCITY Ecosystem

EARN Protocol is a part of the broader POWERCITY Ecosystem. This ecosystem includes various protocols and services that interact seamlessly, providing users with a comprehensive suite of DeFi tools. By being part of POWERCITY, EARN Protocol benefits from shared resources and enhanced utility within the network.

Community and Support

Documentation and Resources

EARN Protocol offers extensive documentation to help users understand the system's intricacies. This includes detailed explanations of the borrowing process, collateral requirements, and security mechanisms.

Community Engagement

For additional support, users are encouraged to join the EARN Protocol's Telegram group. Here, they can ask questions, share experiences, and get real-time assistance from the community and the development team.

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