@lightlending

Lightbringer's novation layer is now finished and is undergoing internal testing! This layer will embed the $LIGHT token directly into the Lightbringer platform in the form of per-asset and protocol backing via staked $LIGHT. This opt-in backstop also will now allow us to list more volatile assets to be used as collateral platform-wide and will be seeded with 4% of the $LIGHT supply initially. Staking $LIGHT behind the platform and behind individual assets is completely optional and can be withdrawn at any point.

We're currently wrapping up the Lightbringer novation layer. With this layer, anybody will be able to stake their $LIGHT on a per-asset basis on the platform and receive a slice of all fees generated from that asset (borrows, lends, interests, splits, etc) along with staking their $LIGHT behind the protocol itself for a slice of the protocol revenue. Per-asset staking is more concentrated and will inherently carry more fees than $LIGHT staked behind the protocol itself. When the Lightbringer novation layer is finished and shipped, we're immediately pivoting and jumping into building out the structure to be the credit layer for both the StonkFun and LONG ecosystems. More information coming soon!

We're building the credit layer for @LaunchOnSF currently! https://t.co/NhIh7jf8pd

Lightbringer is bringing novation onchain. Novation is one of the largest structural models in real markets that never made their way over to onchain finance until now. https://t.co/eQQaNC7tZr

What's next for Lightbringer? We're now getting into fun primitives! 1. Lightbringer's novation layer: This is perhaps the biggest structural idea in market plumbing that hasn't been ported over to onchain finance. Our architecture is deliberately bilateral: one pool, one lender, lender-set terms, isolated. That is why we can list a long tail that nobody else will touch. It means, however, that a borrower with eight loans across eight pools has eight credit relationships, eight maturities and no netting whatsoever. The novation layer keeps the bilateral pricing while adding netting on top. → $LIGHT staked behind specific assets on the Lightbringer platform. → $LIGHT staked protocol-wide. Stakers on assets and protocol functionality receive a slice of accumulated fees, pro-rata, on a per-asset and per-protocol basis. 2. Lightbringer <> StonkFun credit layer: StonkFun coin reflections can basically be classified as a dividend. With some unique tweaking, we can then open a credit layer for StonkFun holders that allow them to use their underlying asset (a StonkFun token) as collateral to receive liquidity for their holdings while retaining their upside on that asset and still receive their asset pair reflections. → A borrower deposits their StonkFun token into a Lightbringer vault on Solana. → The user receives cash upfront for their holdings. → Asset sits in the vault, still captures the upside on the holdings itself. → Dividends accrued to those holdings within the vault are autonomously routed back to the originator even while the asset remains in the vault. → The borrower pays off their loan with interest, receives the full amount of their holdings back.