RENEC Lend
  • Protocol
    • Parameters
    • Liquidation
    • Audit
  • Staking
    • Secure Vault
  • Governance
    • Governance token: RELEND (REL)
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  • Summary
  • Secure Incentive
  1. Staking

Secure Vault

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Last updated 4 months ago

Summary

The primary mechanism for securing the RENEC Lend Protocol incentivizes RELEND (REL) holders to lock tokens into a Smart Contract-based component called the Secure vault (SV). The locked REL will be used as a mitigation tool in case the following Shortfall Events happen:

  • Smart contract risk: Risk of a bug, design flaw, or potential attack surfaces on the smart contract layer.

  • Liquidation risk: Risk of failure of an asset that is being used as collateral on RENEC Lend; risk of liquidators not capturing liquidation opportunities in a timely manner, or low market liquidity of the principal asset to be repaid.

  • Oracle failure risk: Risk of the Oracle system not properly updating the prices in case of extreme market downturn and network congestion; risk of the Oracle system not properly submitting prices, causing improper liquidations.

When one of the above events happens, RENEC Foundation will borrow part of the locked RELEND from SV to cover the debt. The amount and loan duration will be determined by RENEC Lend Governance voting

Participants’ decision to stake RELEND into the SV assumes the acceptance of a potential Shortfall Event as they secure the protocol in return for receiving rewards, in the form of Secure Incentives (SI).

Secure Incentive

To contribute to the safety of the protocol and receive incentives, REL holders will stake their tokens into the SM. In return, they will receive a small amount of veRELEND (veREL) token at 00:00 (UTC+0) every day, which represents their Secure Incentives. The amount of sRENEC will be determined based on Staking APR.

The holder of veREL can convert veREL to RELEND token anytime. The reward RELEND will get from the Ecosystem Development Reserve.