Lista DAO, a leading decentralized finance protocol by TVL on the BNB Chain, is proud to introduce Smart Lending, our next-generation lending solution.

With Smart Lending, users can now put their collateral into a liquidity pool (LP) on Lista’s decentralized exchange (DEX), adding more value to these previously idle assets.

When you deposit collateral through Smart Lending, your assets will, as usual, act as collateral for loans. At the same time, Lista will deposit these assets into a liquidity pool to help facilitate trades. This way, your collateral will be generating trading fees from all the trading activities on DEXs, an extra revenue stream from DEX trading fees generated by the pool.

All of these happens quietly in the background while you maintain full access to your borrowing capabilities and enjoy two sources of yields. With Lista’s influence in the BNB ecosystem, the growth potential of its DEX and related lending activities will be immense.

These markets will be available on Smart Lending at launch:

Dual Revenue Stream: Earn trading fees from DEX liquidity pools while using your assets as collateral for borrowing.

Passive Income: Your collateral generates yield from two streams without any additional effort of management required.

Enhanced Capital Efficiency: Maximize the productivity of your assets by putting it up for loan and trading at the same time.

Smart Lending represents another bold step Lista DAO has taken towards a more versatile DeFi protocol. You will never face the choice between backing loans and accessing liquidity and your capital efficiency is maximized. Experience the future of decentralized lending where every token deposited is a token actively working to grow your wealth.

Currently, Lista’s DEX is only available as one of the routes when you’re swapping assets on Binance Wallet. In the future, a dedicated frontend and more exciting features will be live on Lista. Stay tuned.

(1) How does Smart Lending differ from traditional collateral loans?

Smart Lending allows using one or both assets as collateral borrowing, and the assets are also added to a DEX LP, earning DEX fees that scales with trading volume.

In contrast, traditional loans require locking a single asset, which can’t be reused, leading to lower capital efficiency.

(2) How does Smart Lending differ from Lista CDP and Lista Lending single-collateral loans?

The main differences are:

1）Lower borrowing costs: In its early stages, Smart Lending will offer more attractive interest rates compared to other Lista markets, helping users utilize funds more efficiently. Plus, you can earn DEX trading fees, which further lowers borrowing costs.

2）Asset lending limits: The assets you can borrow depend on supply availability, both in Smart Lending and other Lista Lending categories. CDP loans have fewer restrictions and generally support continuous borrowing of lisUSD.

3）Collateral options: Lista CDP supports mainstream assets and some innovative assets (including LP tokens) as collateral. Lista Lending supports both mainstream and certain innovative assets, but both only support single-asset collateralization. Smart Lending allows you to borrow using one or both assets in the collateral pool and at launch, fewer tokens are supported.

(3) Can I deposit either of the two assets for borrowing?

Yes. Generally, you can collateralize either asset in a vault, or both at the same time. However, if one of the assets in the pool exceeds a certain threshold, you won’t be able to add more of that asset and will need to deposit the other.

Similarly, when withdrawing, if one asset is relatively low in volume, you will only be able to withdraw the other.

(4) What are the risks of Smart Lending?

In extreme cases, i.e, when DEX pools severely deviate from the equilibrium, your position may become extremely imbalanced and suffer from impermanent loss.

(5) What’s the difference between Fixed Ratio and Custom Ratio modes?

Under Fixed Ratio mode, you add collateral at a fixed ratio based on the ratio in the liquidity pool.

Custom Ratio mode: You can add collateral at any ratio according to your preference.

(6) How is the collateral value of LP tokens calculated?

To mitigate flash-loan price manipulation, tokens aren’t only recorded in their relative swap rate but also their USD value. Lista will first read the pool’s virtual price to know how many units of the underlying asset one LP token represents, and then convert it into the denominating currency (e.g. USD).

Using the slisBNB/BNB smart LP as an example:

The virtual price tells us: 1 LP = X BNB e.g. if virtual price = 10, then 1 LP = 10 BNB.

If the lending system is denominated in USD, we then convert BNB to USD: LP value (in USD) = virtual price (in BNB) × BNB price (in USD)

If currently, 1 BNB = 1,000 USD, then:

1 LP = 10 BNB × 1,000 USD per BNB = 10,000 USD

Lista DAO, a leading decentralized finance protocol by TVL on the BNB Chain, is proud to introduce Smart Lending, our next-generation lending solution.

With Smart Lending, users can now put their collateral into a liquidity pool (LP) on Lista’s decentralized exchange (DEX), adding more value to these previously idle assets.

When you deposit collateral through Smart Lending, your assets will, as usual, act as collateral for loans. At the same time, Lista will deposit these assets into a liquidity pool to help facilitate trades. This way, your collateral will be generating trading fees from all the trading activities on DEXs, an extra revenue stream from DEX trading fees generated by the pool.

All of these happens quietly in the background while you maintain full access to your borrowing capabilities and enjoy two sources of yields. With Lista’s influence in the BNB ecosystem, the growth potential of its DEX and related lending activities will be immense.

These markets will be available on Smart Lending at launch:

Dual Revenue Stream: Earn trading fees from DEX liquidity pools while using your assets as collateral for borrowing.

Passive Income: Your collateral generates yield from two streams without any additional effort of management required.

Enhanced Capital Efficiency: Maximize the productivity of your assets by putting it up for loan and trading at the same time.

Smart Lending represents another bold step Lista DAO has taken towards a more versatile DeFi protocol. You will never face the choice between backing loans and accessing liquidity and your capital efficiency is maximized. Experience the future of decentralized lending where every token deposited is a token actively working to grow your wealth.

Currently, Lista’s DEX is only available as one of the routes when you’re swapping assets on Binance Wallet. In the future, a dedicated frontend and more exciting features will be live on Lista. Stay tuned.

(1) How does Smart Lending differ from traditional collateral loans?

Smart Lending allows using one or both assets as collateral borrowing, and the assets are also added to a DEX LP, earning DEX fees that scales with trading volume.

In contrast, traditional loans require locking a single asset, which can’t be reused, leading to lower capital efficiency.

(2) How does Smart Lending differ from Lista CDP and Lista Lending single-collateral loans?

The main differences are:

1）Lower borrowing costs: In its early stages, Smart Lending will offer more attractive interest rates compared to other Lista markets, helping users utilize funds more efficiently. Plus, you can earn DEX trading fees, which further lowers borrowing costs.

2）Asset lending limits: The assets you can borrow depend on supply availability, both in Smart Lending and other Lista Lending categories. CDP loans have fewer restrictions and generally support continuous borrowing of lisUSD.

3）Collateral options: Lista CDP supports mainstream assets and some innovative assets (including LP tokens) as collateral. Lista Lending supports both mainstream and certain innovative assets, but both only support single-asset collateralization. Smart Lending allows you to borrow using one or both assets in the collateral pool and at launch, fewer tokens are supported.

(3) Can I deposit either of the two assets for borrowing?

Yes. Generally, you can collateralize either asset in a vault, or both at the same time. However, if one of the assets in the pool exceeds a certain threshold, you won’t be able to add more of that asset and will need to deposit the other.

Similarly, when withdrawing, if one asset is relatively low in volume, you will only be able to withdraw the other.

(4) What are the risks of Smart Lending?

In extreme cases, i.e, when DEX pools severely deviate from the equilibrium, your position may become extremely imbalanced and suffer from impermanent loss.

(5) What’s the difference between Fixed Ratio and Custom Ratio modes?

Under Fixed Ratio mode, you add collateral at a fixed ratio based on the ratio in the liquidity pool.

Custom Ratio mode: You can add collateral at any ratio according to your preference.

(6) How is the collateral value of LP tokens calculated?

To mitigate flash-loan price manipulation, tokens aren’t only recorded in their relative swap rate but also their USD value. Lista will first read the pool’s virtual price to know how many units of the underlying asset one LP token represents, and then convert it into the denominating currency (e.g. USD).

Using the slisBNB/BNB smart LP as an example:

The virtual price tells us: 1 LP = X BNB e.g. if virtual price = 10, then 1 LP = 10 BNB.

If the lending system is denominated in USD, we then convert BNB to USD: LP value (in USD) = virtual price (in BNB) × BNB price (in USD)

If currently, 1 BNB = 1,000 USD, then:

1 LP = 10 BNB × 1,000 USD per BNB = 10,000 USD