Understanding Nolus Protocol

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

What is Nolus Protocol?
Nolus is at the forefront of reshaping the traditional paradigms of the money market. By marrying the principles of conventional lease products with the dynamism of the crypto landscape, it presents an innovative model for users. Here's how:


A Familiar Yet Innovative Model

Drawing from the age-old system of leasing, Nolus has presented a solution tailored to the crypto community. Instead of paying the full cost upfront, users can now engage with assets at a fraction of the price, utilize them in protocol-approved strategies, and eventually gain complete ownership. This fluid model offers flexibility that was previously unseen in the crypto space.


Overcoming Over-collateralization

One of the most persistent challenges in the crypto lending space has been the need for over-collateralization. Traditional platforms often require borrowers to deposit a value greater than what they borrow, thereby locking up significant capital. Nolus addresses this challenge head-on by significantly reducing the need for such excess collateral, ensuring that the users' assets are not unduly tied up.


Amplified Capital Efficiency

By adopting Nolus, users can make the most out of their investments. With reduced over-collateralization and the ability to engage assets in whitelisted strategies, there's a marked improvement in how effectively capital is employed. This is a game-changer, especially for savvy investors looking to maximize their returns.


Borrower-Centric Approach

Nolus shifts the focus from rigid protocols to a more borrower-friendly platform. By providing favorable lending terms, it ensures that borrowing isn't just an obligation but an opportunity. This user-centric approach fosters trust and promotes a more inclusive financial ecosystem.


Potential for Growth and Diversification

The Nolus model doesn't just benefit individual borrowers and lenders. By changing the dynamics of the crypto money market, it could potentially pave the way for newer financial products and strategies. This opens up avenues for diversification and offers users more ways to grow their portfolios.


Traditional Crypto Money Markets vs. Nolus Protocol



Typically, the loan amount ranges from 20% to 50% of the provided collateral, resulting in a significant amount of idle capital. Nolus amplifies the initial investment by up to 150%, decreasing the collateral requirement threefold.

Risk of Liquidation

Both CeFi and DeFi platforms often liquidate collateral when its value drops 20%-40% from its starting valuation. Nolus 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.

Lack of Ownership

Leveraged products typically don’t offer actual ownership of the asset, just mirroring its price changes. Nolus ensures users retain ownership of the underlying leveraged assets through approved yield strategies.

Liquidity Fragmentation

Many protocols re-deploy their entire codebase when branching into other ecosystems, causing liquidity to fragment. Nolus is cross-chain enabled, preserving liquidity in stablecoins and utilizing them to access vast liquidity pools across diverse blockchain networks.

Asset Fragmentation

Lending platforms usually necessitate multiple pools for borrowing, increasing complexity and limiting liquidity attraction. Nolus solely retains liquidity in stablecoins. Borrowers can employ these stablecoins to access various supported assets without added complexity.