Be the PWN Stars

harnessing the composability in DeFi

7/12/20241 min read

DeFi (decentralized finance) means ‘you are the banker’; the composability in DeFi means ‘you are the bank(s)’. PWN realizes these core concepts and empowers YOU as the financier and the institution — unlocking the next generation of financial services to the unbanked!

Key takeaways:

⦿ Integration - PWN leverages the composability to connect with other protocols.

⦿ User Control/Security - PWN Lets users set their loan terms and conditions.

⦿ Stable Loan Terms - PWN avoids price-based liquidations, not using price feeds.

⦿ Flexible Collaterals - PWN supports various digital assets (e.g. ERC-20 or ERC-72).

⦿ Interoperability - PWN is deployed on multiple blockchains (e.g. ETH or BSC).

Understanding Composability in DeFi:

Composability is a fundamental principle in Decentralized Finance (DeFi) that enables different rulesets and applications to seamlessly interact and integrate with one another. In traditional finance, systems are often isolated. In contrast, DeFi’s open-source nature and reliance on blockchain technology allow for efficient and straightforward interactions between protocols. This connectivity leads to enhanced user experiences, broader access to financial services, and the development of new, value-added solutions.

PWN in Action:

PWN exemplifies the power of composability in DeFi. PWN is a permissionless and peer-to-peer (P2P) borrowing/lending protocol that allows users to issue or secure loans by placing their assets as collateral.

Imagine you own an NFT and need liquidity. Instead of selling the NFT, you can pledge it as collateral on PWN and secure a loan. Meanwhile, PWN can interact with a DEX to manage the collateral dynamically, ensuring you get the best possible terms and minimizing the risk of liquidation. If you wish to use the borrowed funds for yield farming, PWN’s composability allows seamless integration with various yield farming protocols, maximizing your potential returns.

Closing remarks:

Composability is a driving force behind the evolution and innovation in the web3 space. PWN leverages this principle to offer a secure and user-friendly financial protocol that integrates seamlessly with other DeFi services. In the era of the Markets in Crypto Assets Regulation (MiCA), protocols like PWN will be instrumental in unlocking new opportunities and enhancing the overall ecosystem, making financial services more accessible and efficient for users worldwide.