*Category: DeFi
Strike Coin: A New Paradigm in Decentralized Finance (DeFi)
[What is Strike?]
Strike is a DeFi lending protocol that allows users to deposit various cryptocurrencies supported by the platform in order to earn interest. Users can also provide a certain amount of collateral to borrow cryptocurrencies. All processes are automatically handled through smart contracts, ensuring that the Strike platform offers safe and transparent financial services.
[How Strike Operates]
- Deposits and Interest Earnings
Users receive sTokens when they deposit specific cryptocurrencies (e.g., ETH, USDT) onto the Strike platform. For example, if a user deposits ETH, they will receive sETH, and over time, the exchange rate for the sToken increases, allowing the user to withdraw more cryptocurrencies than they originally deposited. This growth represents the interest earned on the deposited assets. - Collateralized Loans
Users can deposit a certain amount of cryptocurrency as collateral and borrow as needed. The collateralization ratio (LTV: Loan-to-Value) varies based on the asset but is generally set within the range of 50% to 80%. Borrowers must pay interest, and if the collateral falls below the maintenance threshold, it may result in automatic liquidation. - Community-Centric Governance
Strike has a fully decentralized governance system. Holders of Strike's governance token (STRK) can participate in various decisions regarding protocol changes, the addition of new cryptocurrencies, adjustments to collateral requirements, changes to interest rates, and more. These features make Strike a community-driven platform, allowing sustainable growth without the intervention of centralized authorities.
[STRK Token and Distribution Plan]
The native token of Strike, STRK, is a core element governing the platform's operations. STRK tokens can be purchased on third-party exchanges or earned through deposit or lending activities on the Strike platform. The total supply of STRK is capped at 6,540,888 tokens, with approximately 2,540,888 currently in circulation. Of these, 4,000,000 tokens are scheduled to be distributed to Strike users over an eight-year period.
[Safety and Automation Systems of Strike]
Strike ensures that loans are always kept safe through an over-collateralization system. If the collateral value drops below a certain level, it is automatically liquidated at a 10% discount to ensure loan repayment.
This approach serves the following positive purposes:
- Encourages borrowers to maintain their collateral.
- Reduces the risk of borrower insolvency.
- Provides profit opportunities for liquidators.
[Future Outlook of Strike]
Strike operates as a fully community-centric DeFi project, without venture capital or founder pre-allocations. With the "Governors" system, new cryptocurrencies can be quickly added, making the platform highly scalable. Due to these features, Strike is expected to play a significant role in the future of the DeFi market.
[Conclusion]
Strike is a decentralized finance platform that allows users to earn interest on deposits and borrow by using collateral. Additionally, with a complete community governance system, it can continuously develop without the intervention of centralized authorities. For those looking to utilize cryptocurrencies more efficiently rather than simply holding them, Strike presents an attractive option.
This article does not constitute investment advice or financial recommendations. Cryptocurrency investments carry high risks, and the responsibility for any investment decisions lies solely with the investor.
