Salvor, a peer-to-peer lending protocol, has joined the Avalanche Rush Program, receiving $1 million in AVAX tokens. The protocol allows its users to use NFTs and memecoins as collateral for loans, thereby boosting liquidity and financial flexibility in the Avalanche ecosystem. This incorporation of Salvor is part of a much broader effort to boost Avalanche’s DeFi ecosystem through the Avalanche Rush Program, which has seen many other well known projects join since its inception in 2021.
Avalanche Rush Backs Salvor with $1M
Salvor, a peer-to-peer (P2P) lending protocol on Avalanche C-Chain, has joined the Avalanche Rush Program, receiving up to $1 million in AVAX from the Avalanche Foundation. Salvor allows users to leverage their NFTs and memecoins as collateral to secure loans in AVAX, which increases liquidity and financial flexibility in the Avalanche ecosystem.
In other words, Salvor Lending boosts capital efficiency by encouraging users to borrow against their NFT and memecoin holdings rather than selling them. This helps users access immediate liquidity for sweeping top collections without having to liquidate their digital assets. The platform also allows lenders to earn passive income through short-term loans, with an automated Dutch auction system in place if the loan amount plus interest is not paid back in the agreed amount of time.
Salvor’s platform impressively supports more than 800 NFT collections, even heavyweight names like Dokyo, MadSkullz, Chikn, and Steady. It also offers features such as bulk transaction capabilities, pool balances for rapid trading, and trait-specific bidding. Additionally, early loan repayments are rewarded with lower interest rates.
The founder of Salvor who goes by “Utku” believes that P2P NFT Lending will play a crucial role when it comes to supporting healthy ecosystems. He also pointed out that one of Salvor’s main goals is to make NFTs more liquid.’’
The CEO of Avalanche Rush is also very optimistic about what Salvor could bring to the DeFi and NFT space. He believes that by facilitating secured loans against NFTs, Salvor not only increases liquidity, but it certainly also opens some doors for NFT owners to take part in the financial ecosystem without having to actually sell their assets.
What is Avalanche?
Avalanche (AVAX) is a blockchain platform and cryptocurrency that competes with Ethereum. Launched in 2020, Avalanche distinguishes itself by prioritizing speed, versatility, security, cost-effectiveness, and accessibility.
Avalanche is open-source, inviting developers worldwide to contribute to and enhance its codebase. This approach encourages a collaborative environment and boosts innovation and transparency in the Avalanche community.
One of the standout features of Avalanche is its ability to achieve rapid transaction finality. Users use AVAX to pay for transaction fees, secure the network through staking, and facilitate interoperability across multiple blockchains in the Avalanche network, which makes it a very versatile and foundational component of its financial ecosystem.
What is the Avalanche Rush Program?
Back in 2021, Avalanche unveiled a very generous $180 million liquidity mining incentive called Avalanche Rush. The initiative is designed to attract more applications and tokens to its DeFi platform. This program has been rolled out in several stages, and initially focused on integrating major DeFi protocols like Aave and Curve.
During the first phase of Avalanche Rush, the platform distributed up to $20 million in AVAX tokens to Aave and $7 million to Curve over a span of three months. This strategic funding was aimed at boosting the presence and activity of these protocols on Avalanche's DeFi platform.
In addition to supporting Aave and Curve, the Avalanche Foundation launched Benqi’s DeFi protocol. Benqi received a $3 million allocation from the foundation starting in August of 2021.
Since its inception, other projects like Sushi, Struct Finance, Penguin Finance, GMX and now Salvor have joined Avalanche Rush.
