Control Finance: Lending-Borrowing On Tezos

Control Finance

Through Control Finance, users will be able to lend out their Tezos-based assets and earn interest while doing so. On the other end, users will be able to supply collateral and borrow assets. 

Control Finance is designed in such a way that lenders funds are not fixed for a certain period of time.

This is made possible by the Control protocol, which accumulates the funds of all users providing the asset and their funds become interchangeable. Due to this, the protocol is able to provide greater liquidity compared to direct lending.

This is achieved through the creation of a placeholder token called ShareToken (sToken).

In return for the deposited funds, the investor receives sTokens, which constantly increase their value as interest on loans accumulates. Thus, the investor receives his dividends simply by owning the FA2 sToken.

Control Finance is powered by Flame DeFi. And although both are separate projects, Control Finance does include the possibility to use Flame LP tokens as collateral.

This is an interesting use-case since providing liquidity usually is a (semi)long-term strategy and allowing LP tokens as collateral, frees this value for other possibilities within the Tezos DeFi ecosystem.

Interest rates are variable, depending on ask and demand. If many users supply assets for lending, while fewer users take out a loan, the interest rate is low. If more users take out loans, while the supply stays the same, the interest rate goes up. 

On the borrowing side, there is a risk of liquidation. As we know from stablecoin protocols where users can mint stabelcoins in exchange for a supplied collateral, liquidation can be activated by other users when the collateral value drops below a certain threshold.

This is always a risk that borrowing brings, so make sure you fully understand this risk before interacting with the protocol on the borrowing side.

CTRL Governance Token

Control Governance aims for full decentralization through the governance token “CTRL”.

Owners of Control (CTRL) tokens will be able to vote for the adoption of changes in the following cases:

– The ability to list a new asset;

– Ability to delete active asset;

– The ability to update the collateral factor for each asset;

– The ability to update the interest rate model for each asset;

– The possibility of change % rewards for farming CTRL token

– The ability to change reserve ratio

CTRL Earning Design

Part of the interest that is paid for the loans that are taken out will be distributed to CTRL token holders. The percentage that will be allocated to CTRL holders is between 0% and 50% and will be determined by voting. (Again by CTRL holders). 

CTRL Presale

The CRTL presale is currently ongoing and will end soon. You can buy CTRL on the Control Finance website. 

You can stake your CTRL from presale on the CTRL cold farm. This means that you can earn tokens from the moment you buy them and before they come available through the IDO which will take place at a later time.

You don’t need to lock your tokens in a smart contract to be able to stake. This is called cold staking. This way you will still be able to use your tokens for voting. 

20M CTRL tokens are allocated for the presale.

All unsold tokens will be transferred to the next round: the IDO. 

Seed sale price: 

1 CTRL = 0.0075 XTZ

IDO price: 

1 CTRL = 0.01 XTZ

Initial token supply:

100,000,000 CTRL

Maximum token supply:

100,000,000 CTRL

Seed sale:

20,000,000 CTRL*

Team:
10,000,000 CTRL*

Airdrop:

1,000,000 CTRL

Marketing:

4,000,000 CTRL

Smart contract:

KT1P456X7TN1QMu7xNdrDVMBJwNpraFkNdGx

Token ID:
0

Decimals:
6

*All unsold tokens will be transfered to the next round of sale. The team’s tokens will be locked for 2 years with a monthly unlock.

Control Finance Launchdate

The launch date is set for Q1 2022.

More info here: https://medium.com/@ControlFinance/control-finance-3fc5b8d93155