There are much more opportunities on the Solana Blockchain than just trading your assets or doing yield farming. With Acumen, the first money market that is live on the main net, users can now lend or borrow digital tokens to leverage their holdings while earning interest fees. An introduction to Acumen – a Defi platform based on Solana.
What is Acumen?
The Acumen protocol is a decentralized interest rate protocol built on the Solana blockchain, enabling open financial applications by setting interest rates algorithmically. It makes users earn reasonable interests by building decentralized money markets or pools of assets with interest rates set by a program based on the current demand and supply of loanable coins. Inspired by Aave and Compound, Acumen connects lenders and borrowers. Users can now start earning interest on SOL, SRM, STEP, BTC, and ETH. There will be more pairs being added shortly.
What makes Acumen different from other Defi protocols?
One of the most pressing issues faced by most Defi platforms on the Ethereum blockchain is the cost related to gas fees. Since Acumen is built on the Solana Blockchain, the average transaction fee is dropping to $0.0001, allowing micro-lending. Therefore, users are more flexible and have more opportunities as even the smallest transaction can become profitable.
The best feature of Acumen is bringing lenders and borrowers together to make a more rewarding ecosystem. Acumen allows users to supply assets where it uses non-custodial liquidity pools for every asset class. A lender deposits his assets to the liquidity pools in this system rather than lending them directly to the borrowers. This feature gives lenders the right to move in or out of the pool whenever they want.
Users can now start earning interest on SOL, SRM, STEP, BTC, and ETH. There will be more pairs being added shortly.
Another great feature of Acumen is where users can borrow assets. Borrowers get the fund from liquidity pools, not directly from the lenders. This feature makes this feature interesting because users don’t have to worry about maturity dates and funding periods as there are none. In addition, the process is incredibly fast. The protocol sets a borrower’s capacity to control the risk.
Acumen is different from traditional money markets as the borrowers and lenders receive better rates that they have to pay or earn, which doesn’t depend on the standards set by the central bank. Instead, the supply and demand determine the rate, which is good for those who want to maximize their earnings.
There is a total of 19,000,000 Acumen tokens (ACMN). The Distribution of ACMN is as follows:
- 8,867,409 ACMN has been allocated to protocol users
- 5,816,700 ACMN has been distributed to developers who created the protocol
- 3,266,700 ACMN has been allocated for liquidity and ecosystem advancement
- 750,636 ACMN has been allocated for future developers
- 298,555 ACMN has been allocated for Governance
- 0 ACMN has been sold or retained by Acumen
8,867,409 ACMN are in an SPL token account, which will transfer ~7.8 ACMN per minute or roughly 11,356 per day. Tokens are allocated to each asset pool(SOL, SRM, USDC, BTC..), with 50% of the distribution going to the suppliers and the other 50% to the borrowers. The amount of tokens distributed in each market is proportional to the interest being accrued; as market conditions change, so does the amount of ACMN being distributed.
The Future of Acumen
Acumen is capable of revolutionizing Defi by allowing users to take out microloans without huge gas fees. Thanks to the Solana blockchain, borrowers will not suffer from paying high interest rates anymore.
Soon, Acumen will launch the Acumen Stable App where users can deposit digital assets on the platform and stable interest in return. The deposited assets will then be accessible to people who are future ventures in developing countries.
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