Understanding Nolus Protocol

Decoding the Nolus Protocol: How It Can Amplify Your Crypto Investment Gains

What is Nolus Protocol?
Nolus draws from the well-established leasing system and adapts it for the crypto community. Users can now engage with assets at a fraction of their full price, utilize them in protocol-approved strategies, and eventually gain complete ownership. This model offers unprecedented flexibility, solving key issues such as over-collateralization and capital inefficiency


Overcoming Over-Collateralization

A persistent issue in crypto lending has been the requirement for over-collateralization, where borrowers must deposit more value than they borrow, tying up significant capital. Nolus addresses this by significantly reducing the need for excess collateral, ensuring that users’ assets are not unnecessarily tied up


Amplified Capital Efficiency

With Nolus, users can optimize their investments. The reduction in over-collateralization, coupled with the ability to engage assets in whitelisted strategies, enhances capital efficiency. This is a game-changer for investors looking to maximize returns


Borrower-Centric Approach

Nolus prioritizes a borrower-friendly platform over rigid protocols. By offering favorable lending terms, it transforms borrowing from a mere obligation into an opportunity, fostering trust and promoting a more inclusive financial ecosystem


Potential for Growth and Diversification

Nolus benefits not only individual borrowers and lenders but also changes the dynamics of the crypto money market. This opens avenues for new financial products and strategies, allowing users to diversify and grow their portfolios


Traditional Crypto Money Markets vs. Nolus Protocol



  • Traditional Platforms: Loan amounts typically range from 20% to 50% of the provided collateral, resulting in significant idle capital
  • Nolus Protocol: Amplifies the initial investment by up to 150%, reducing the collateral requirement threefold

Risk of Liquidation

  • Traditional Platforms: Often liquidate collateral when its value drops 20%-40% from the starting valuation
  • Nolus Protocol: Has a liquidation threshold 40% below the industry average, allowing up to a 65% decrease in the digital asset's value before starting partial liquidation. Traditional liquidations often result in significant losses for borrowers. Nolus mitigates this with partial liquidations, only selling a portion of the collateral to maintain a healthy loan-to-value (LTV) ratio. This approach gives borrowers more time to recover their position, reducing future liquidation risks and minimizing collateral loss


Lack of Ownership

  • Traditional Platforms: Leveraged products typically don’t offer actual ownership of the asset, only mirroring its price changes
  • Nolus Protocol: Ensures users retain ownership of the underlying leveraged assets through approved yield strategies