Madfish launches Yupana.Finance, the first lending protocol on Tezos

Yupana, which aims to provide a similar experience to Aave or Compound, currently supports TEZ, cTEZ, kUSD, tzBTC, uUSD, and uBTC.

Estonian software development company Madfish Solutions has announced the launch of the first full-fledged lending protocol on Tezos, Yupana.Finance.

Madfish specializes in the Tezos ecosystem, having previously created other projects, including QuipuSwap DEX and Temple Wallet, which are said to be used by nearly 200,000 users in the Tezos DeFi sector.

The launch of Yupana.Finance marks a milestone for the Tezos community as it brings an open-source, decentralized, non-custodial lending protocol to Tezos users with the same functionality seen in other popular DeFi ecosystems, allowing them to borrow, lend and earn rewards.

Lenders provide liquidity and receive passive income, while borrowers support secured loans. In turn, liquidators are incentivized to close insufficient collateral positions to keep the platform in business.

A new level of experience in the Tezos DeFi ecosystem

Sophia Gorban, Product Owner at Yupana.Finance, commented, “We have worked hard to deliver a fully-fledged liquidity protocol and I hope users will enjoy a new level of experience within the Tezos ecosystem. DeFi, which has now become full and complete.”

According to Madfish, Yupana.Finance has been extensively tested with the help of the entire community before being launched on the Tezos mainnet. Everyone can now interact with the loan protocol tools.

Yupana, which aims to provide a similar experience to Aave or Compound, currently supports TEZ, cTEZ, kUSD, tzBTC, uUSD, and uBTC.

Tezos Ithaca 2 Upgrade Introduced Near-Instant Finality

The launch of Yupana.Finance follows the recent release of a major Tezos blockchain update, Ithaca 2.

The upgrade introduced a new consensus mechanism, Tenderbake, which brings several improvements. This includes so-called “near-instantaneous finality”, which provides absolute certainty that transactions cannot be rolled back after two blocks.

Tenderbake replaces the old consensus algorithm, known as Emmy, which will additionally enable faster transactions and smoother applications on Tezos. Replacing the consensus mechanism with Tenderbake is in itself a major step for the network, as it defines the new rules by which Tezos bakers decide the state of the ledger – a core function of a blockchain.

The Ithaca 2 upgrade also prepares the Tezos protocol for scalability plans such as moving from a reel-based model to an optimized stake-based model. As noted in the press release, other benefits include rollup support for WebAssembly and EVM compatibility with pre-checking, a lightweight validation scheme for the mempool that will increase overall throughput.

Specifically, Tezos revealed that Tenderbake achieves faster block times down to 1 second or less, bringing the open-source protocol in line with Visa’s TPS levels without sacrificing decentralization.

Distinct from Tezos’ Emmy+ algorithm, Tenderbake will reduce the requirement to become a network validator (baker) by 25%, from 8,000 tez to 6,000 tez.

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