Magnify Cash Introduces DeFi Protocol and Announces Token Launch
Magnify Cash, a decentralized finance (DeFi) platform based in Singapore, has launched a new protocol designed to address liquidity challenges in the cryptocurrency market. The platform aims to provide lending and borrowing services for a wide range of digital assets, including Real-World Assets (RWAs) and Future Yield Tokens (FYTs), through permissionless lending desks.
The protocol introduces a Universal Collateral Acceptance feature that supports various tokenized assets, including ERC-1155 and ERC-721 tokens. This allows users to use non-fungible tokens (NFTs) and tokenized real-world assets such as art, real estate, and bonds as collateral for loans. The system is designed to operate without intermediaries, utilizing a dynamic interest rate model based on linear interpolation and scaling factors.
Magnify Cash reports that its protocol has undergone security audits by Guardian Protocol and a gas optimization audit by Gaslite. The platform has been tested on the Base Testnet, where it claims to have facilitated the creation of over 500 lending desks, issued more than 500 loans, and engaged nearly 5,000 unique users.
The company has announced plans to launch on Base Mainnet and Ethereum Mainnet in the near future, with potential expansions to other Layer 2 solutions. Magnify Cash is also introducing its native token, $MAG, through a fair launch process. The token sale is scheduled to run from July 23rd to July 27th, 2024, using Fjord Foundry's liquidity bootstrapping protocol. According to the announcement, over 70% of the tokens will be allocated for public distribution.
Magnify Cash states that it has formed partnerships with several industry entities, including LydianLabs, FjordFoundry, and Jiraiya, among others. The platform is currently operational on the Base Testnet and invites potential users to explore its ecosystem through its website, which provides access to a pitch deck, introductory video, whitepaper, and technical documentation.
As with all financial products, particularly in the rapidly evolving DeFi space, potential users are advised to conduct their own research and consider the risks involved before participating in new platforms or token launches.
