What is Pledge Finance?
Pledge Protocol (“Pledge”) is an algorithm-driven, financial NFT based, cross-chain ecosystem covering lending and derivatives across many major public chains. At the current stage, Pledge first builds on the Binance Smart Chain. In the future, Pledge aims to become the infrastructure for the next phase of global financial market evolution.
Pledge is a decentralized protocol which establishes money markets with algorithmically optimized fixed interest rates. When a user holds pTokens, Pledge’s LP tokens, they receive a fixed interest rate called annual percentage yield (APY) with earnings accumulated per block, while borrowers pay fixed and predictable interest. Unlike other DeFi lending protocols, Pledge creates various liquidity pools with different maturities for a given crypto asset featuring fixed lending terms. This allows users to frictionlessly exchange the time value of money derived from collateralized digital assets and stablecoins.
Pledge provides a suite of decentralized financial contracts, defined as financial NFT, hoping to facilitate its use and adoption as an integral part of the fixed income money market. These derivative trade smart contracts, which typically swap fixed-rate interest payments for floating-rate, interest payments are an essential tool for defi investors who can use them in an effort to hedge, speculate, and manage risk on or cross chains.