What is Tren AI Protocol?
Learn about Tren AI Protocol, its mission, and the new use cases that it introduces to DeFi
Last updated
Learn about Tren AI Protocol, its mission, and the new use cases that it introduces to DeFi
Last updated
Tren AI Protocol is the first Liquidity (re)Enabling Protocol bringing capital efficiency to DeFi through composability, powered by Proof-of-Liquidity and Hooks to securely (re)Collateralize LP, Money Market Deposits, and (re)Staked positions. Isolated modules bootstrapped with a synthetic dollar provide on-demand liquidity for leverage and hedging strategies.
The DeFi ecosystem currently holds over tens of billions of dollars worth of assets across lending markets, DEXs, and yield protocols that remain underutilized from a capital efficiency perspective. While these assets generate yield through various mechanisms - LP fees, farming rewards, staking returns - they represent a massive pool of locked capital that could be further leveraged to enhance returns and create new opportunities.
This untapped market spans across various DeFi sectors:
DEX Liquidity: LP tokens across major DEXes
Isolated Modules
Risk is siloed with isolated module architecture, eliminating systemic risk. Read more
Proof-of-Liquidity
Proof-of-Liquidity is a mechanism for dynamically assessing collateral value by leveraging the underlying liquidity of tokens, ensuring a more accurate and liquidatable asset valuation compared to traditional quote price methods. Read more
Hooks
Hooks are customizable smart contracts to enhance interoperability and create advanced strategies with 3rd party protocols. Use Hooks to get leverage on your assets. Read more
FlashMint
Infinite on-demand liquidity for arbitrage, refinancing, and other complex DeFi strategies, all while maintaining zero-risk settlement. Read more
Gauges
Gauges are used to determine how protocol revenue and rewards are allocated to the various stakeholders in Tren AI Protocol's ecosystem.
SSL
The Single Sided Liquidity (SSL) Program enables users to contribute stablecoins to establish or augment liquidity pools with Tren AI Protocol’s synthetic dollar.
XY
XY is a synthetic dollar debt token backed by overcollateralized loans. The token was built using Layerzero's Omnichain Fungible Token (OFT) standard, allowing XY to be transferred across multiple blockchains without asset wrapping, middlechains, or liquidity pools.
TAP & veTAP
TAP is the value accrual token for Tren AI Protocol, with 90% of protocol revenue directed towards TAP buybacks. The token supply is designed to diminish over time through TAP burns, and starts at a fixed initial supply of 1 billion tokens. veTAP stands for "vote-escrowed TAP." veTAP is used to gauge the voting power and economic commitment of users who choose to lock their TAP tokens for a specified duration.
Tren AI Protocol offers 3 main use cases that users can employ, with different strategies under each use case.
By using LP tokens as collateral, users can borrow XY, which can be used to hedge against impermanent loss in their LP positions, or simply be used as liquidity to acquire other assets. Users can also use the protocol's recursive lending hook for looping leverage on their LP tokens, maximizing yield.
Users can also use receipt tokens from money market deposits for looping leverage and enhanced yield. XY can be borrowed at 0% interest, and can be used to hedge against a user's underlying money market deposit token for a delta neutral position, while still accumulating yield from the money market deposit.
Restaked assets can be used similarly to money market deposits. PT tokens can also be used on the protocol, and with looping leverage, users can multiply their yield from PT tokens. Users can also borrow XY at 0% interest to hedge against their underlying positions for delta neutral positioning while still accumulating yield.
