Review Port Finance($PORT) – Everything you need to know about it
What is Port Finance
Port Finance is a decentralized Money Market protocol on Solana, aiming to provide a full suite of lending products including but not limited to: variable rate lending, fixed-rate lending, and interest rate swaps. Port Finance’s team brings engineering experience from tech companies like Google, Facebook, and Microsoft, and previous contributions to Solana and Serum
Port Finance is a money market that exists within the Solana ecosystem, leverage the speed of the Solana blockchain and aim to provide competitive lending and interest rate derivative products, with a plan to provide a basic lending protocol that allows users to enter leveraged positions.
How collateral deposits work on Port Finance
One of the features that distinguishes us from other money market platforms is that we allow users to use multiple collateral types to create their position; users are able to deposit various stablecoins and assets to create one collateralized position.
In the beginning, we will allow users to deposit USDC, USDT, PAI, SOL and SRM as forms of collateral. The user can then bundle these together on our platform to define their borrowing power.
Loan to Value Ratio
A loan to value ratio refers to how much capital a user has access to based on the amount of collateral they deposit. In defi, lending and borrowing protocols generally require the user to over-collateralize their position in order to reduce risk to the lender and to account for volatility of the underlying asset provided as collateral.
Because the majority of the collateral that we accept is in the form of stablecoins, we offer a maximum 90% Loan-to-Value (LTV) and on more volatile assets such as SOL, we will allow users a maximum of 70% LTV. Users doesn’t need to use all of their available borrowing power. Doing so reduce the chance of having their position liquidated, which is something we will discuss a bit later in this article.
Interest rates are loosely defined as the rates that borrowers will pay to lenders/depositors over the duration of the loan and vice versa. On Port Finance, our interest rates are determined by the total borrowed amount of assets versus the total liquidity provided by lenders and depositors. Port Finance then use a predefined curve to determine the interest rates.
Volatility in regards to an asset’s price will play a role in interest rates. For example, more volatile assets will have more drastic swings in interest rates to incentivize more people to deposit into the liquidity pool. For stable assets (such as USDC, USDT, and PAI), the curve is more gentle and will change less drastically.
More information on the above can be found in our introductory article.
Users will also be able to earn yield on their assets by simply depositing their capital into Port Finance. More on this to follow soon, so stay tuned.
Liquidation events are triggered when a user’s collateral drops significantly in price, and exceeds a predetermined threshold, allowing other users to cover the debt of the position themselves in order to retrieve the liquidated collateral.
On Port Finance, utilize third party liquidations in order to maintain overall health of the protocol. What this means is that we will allow users to scan through existing loans, searching for defaulted loans that can be liquidated. These users can then provide the necessary collateral to cover the debt of the loan, which in turn restores funds to the protocol while also allowing the liquidator to collect the collateral on the loan. Since these loans are overcollateralized, this creates a symbiotic relationship between the protocol and the liquidator.
Flash Loans are the first uncollateralized loan option in DeFi and implement them on Port Finance to enable DeFi aficionados to arbitrage and more. Designed for developers, Flash Loan functionality enables participants to borrow instantly and easily, no collateral needed provided that the liquidity is returned to the pool within one transaction block.
If this does not happen, the whole transaction is reversed to effectively undo the actions executed until that point. This guarantees the safety of the funds in the reserve pool. Use-cases include arbitrage, collateral swapping, self-liquidation, and many more
At Port Finance, it has always been our goal to move towards decentralization and distribute governance to the Port community,Moving forward, the PortDAO will be involved in making key decisions to steer the ship!
Initial matters to discuss on will include:
- Liquidity Mining Rewards distribution
- Token Support on the platform
- Collateral Risk Parameters
PortDAO’s governance module is based on the Tribeca Program, which we are proud to be one of the contributors of, together with many leading protocols. Features of the Tribeca Program include:
- Built with Anchor: this makes the code easy to maintain and compose
- Locked Voting: the longer the users lock their tokens, the more voting power they are able to get which aligns the interest between protocol and long term token holders
- Simplicity: the Tribeca Program is designed to be a simple system that does as little as possible
Read more about the Tribeca Program here: https://docs.tribeca.so/
- Token Name: Port Finance.
- Ticker: PORT.
- Blockchain: Solana.
- Token Standard: SPL.
- Contract: PoRTjZMPXb9T7dyU7tpLEZRQj7e6ssfAE62j2oQuc6y.
- Token Type: Utility, Governance.
- Total Supply: 100,000,000 PORT.
- Circulating Supply: Updating.
Token Release Schedule
Token Use Case
Port Finance issues PORT as its governance token, having functionalities as follows:
- Staking: Earn a portion of the fee on the platform by staking PORT. The Port Finance team plans to integrate this staking feature in the future.
- Fees: Borrowing fees and flash loan fee when the staking program is finished. 50% of the fee goes to buy and burn PORT tokens, the rest goes to the insurance fund.
- Governance: PORT holders can participate in voting on changes to the Port Finance protocol and parameters including the maximum loan to value ratio, new crypto asset support, liquidation threshold, etc. However, this governance feature has not been released yet.
The Port Finance team includes engineers with technical expertise backgrounds from big tech companies, namely Google, Facebook, and Microsoft. Moreover, they contributed open-source code for Solana and Serum.
The team met each other in London while studying Computer Science at Imperial College, London. Therefore, 4 Co-Founders have solid technical backgrounds.
Currently, Port Finance has formed profound partnerships with three other projects in the Solana ecosystem. Since Port Finance is a lending platform, it needs to diversify its lending products by accepting other types of tokens as collateral.
- Mercurial Finance (MER)
- Party Parrot (PAI, pSOL)
- Marinade (mSOL)
Port Finance has raised $5.3M in its latest strategic funding round, The round is led by Alameda Research with participation from Spartan Group, Brevan Howard, and A41. Port Finance’s list of existing investors also include Jump Capital, Solana Foundation, GSR, and Defi Alliance.
Port Finance is a worth-to-mention project on Solana since it’s now leading the lending sector of the ecosystem. With flexible parameters for the lending protocol, it takes a different approach to compete with existing large lending platforms.
And that is all you need to know about Port Finance and its PORT token. I hope you’ve gained helpful insights to understand the potential behind Port Finance.
Find more information about: Port Finance
If you have any questions, comments, suggestions, or ideas about the project, please email [email protected].
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.