Overview
Control your DeFi experience with OMP, setting your own terms and managing assets seamlessly on Tulia Protocol.
The idea behind the OMP (Open Market Protocol) stems from the repetition of projects within the DeFi ecosystem. Projects lacking innovative profit-focused ideas have rendered today's ecosystem shallow and corporate. To counter this, some are taking action (like Zora Energy), and we want to be a part of it. Here's how the Open Market Protocol works:
Operating Principle: In the Open Market Protocol, users open a pool using our TuliaPoolFactory contract, which is then registered with our other contracts such as PoolOrganizer and reward mechanisms. After this pool is opened, the user activates it by depositing money, waiting for a borrower. The first problem we solve here is that no user has to wait without earning any return while lending or borrowing on other platforms. Our idea here also includes:
Keeping Users on the Platform: When you open and activate a debt with the interest model you want, with the coins you want, for the repayment period you choose, these coins provide liquidity to other market leaders. This liquidity allows you to earn an interest rate that you could otherwise only earn on other platforms while waiting for a borrower. Additionally, if a borrower has not yet arrived and you spot a more profitable investment (which is rare 😄), you can close the deal. This allows you to retrieve your invested funds and the interest, and then close the pool. The PoolOrganizer will then remove your contract from the system.
When the Borrower Arrives: Now, the funds in the pool are withdrawn from other platforms and go to the borrower (the borrower deposits interest-bearing collateral, and if you're new to crypto lending, we'll explain at the end how this is profitable). Now, there's a new element in the pool: collateral. The interest portion of the deposited collateral is paid to you until the repayment day ends, and the remaining collateral again provides liquidity to leading platforms. This time, the interest received is split between you and the borrower, and both the lender and borrower start earning interest until the debt is paid. So, you can even earn while borrowing! These operations work with simulated contracts on the testnet, which you can try!
What Happens After the Debt is Repaid: If the debt is repaid, the collateral is returned to the borrower, and any future interest for the remaining repayment period is automatically sent to the lender. If the debt is not repaid, the lender can go to "My Pools" in their pool and declare the loan in default, seizing the unpaid debt along with the collateral, interest, and rewards.
Our First Experimental Idea: Flash Pools: As you know, flash loans require a bit more advanced knowledge and are one of the most significant aspects we focus on. Our goal is to make them accessible to the average user. Currently, you can use the same reward mechanisms by opening a flash pool, which our other contracts will also track. You can utilize flash loans on platforms like Remix IDE using the sample code we provide.
Excited for a New Standard in DeFi
We are tremendously excited about the potential of this new standard in DeFi, which emerges from the synergistic operation of our two lending systems. This integrated system could significantly contribute to the evolution and decentralization of DeFi. Currently, you can use simulated contracts on the testnet to explore this concept. To make this vision a reality, the support of the Tulia community is more crucial than ever.
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