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zeekay
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Restructured from flat .tex/.pdf files into per-paper subdirectories. Added Antje Worring as co-author on all papers. Synced PDFs to pdfs/ for download site.
42 lines
1.7 KiB
TeX
42 lines
1.7 KiB
TeX
\section{Introduction}
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\subsection{The Capital Efficiency Problem}
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Traditional DeFi lending protocols like MakerDAO and Compound require overcollateralization ratios of 150-200\%, resulting in significant capital inefficiency. A user depositing \$100k can only borrow \$50-66k, locking substantial value unproductively.
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Self-repaying loan protocols like Alchemix improved capital efficiency by using yield to automatically repay debt, but maintained conservative 50\% LTV ratios and limited collateral types to yield-bearing assets on Ethereum only.
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\subsection{Lux Credit Innovation}
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Lux Credit, launched in December 2023, addresses these limitations through:
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\begin{enumerate}
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\item \textbf{90\% LTV Ratios}: Highest capital efficiency in DeFi through automated yield repayment
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\item \textbf{11\% APY on LUX}: Sustainable yield from diversified strategies
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\item \textbf{Cross-Chain Collateral}: Bitcoin, Ethereum, and 15+ assets via M-Chain bridge
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\item \textbf{MPC Security}: Threshold custody eliminates centralized key management
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\item \textbf{Zero Liquidations}: Conservative risk model since December 2023 launch
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\item \textbf{Self-Repaying}: Automated debt repayment from yield generation
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\end{enumerate}
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\subsection{Key Achievements (December 2023 - Q3 2024)}
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\begin{table}[h]
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\centering
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\begin{tabular}{@{}lr@{}}
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\toprule
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\textbf{Metric} & \textbf{Value} \\ \midrule
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Loans Processed & 18,400 \\
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Total Value Locked & \$427M \\
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Average LTV & 87.3\% \\
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Liquidations & 0 \\
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Yield Generated & \$31.2M \\
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Active Users & 12,847 \\
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Average Loan Duration & 387 days \\
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Protocol Revenue & \$2.1M \\ \bottomrule
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\end{tabular}
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\caption{Lux Credit performance metrics (Q3 2024)}
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\end{table}
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