DeFi lending platform with ‘smart leverage’ sees five-fold TVL, buys back 4M tokens

DeFi platform Nolus introduces the DeFi Lease with its Smart Leverage feature, blending flexible borrowing options with strategies designed to mitigate risks.

Decentralized finance (DeFi) needs to tackle a set of challenges before going fully mainstream, starting with high collateral demands, volatile markets and inefficient leveraging mechanisms. Creating a barrier to broader adoption, these issues hinder accessibility and expose users to unnecessary risks.

DeFi leasing, where users control assets with a fraction of their cost upfront, provides a blueprint for making DeFi more inclusive by lowering the financial barriers to entry . This model enables individuals with limited capital to participate in DeFi, as they can access assets and financial opportunities without the need for large upfront investments.

Empowering flexible lending solutions

Nolus , a Web3 financial suite, exemplifies how innovation can bridge the gap between DeFi and widespread adoption. Its flagship solution, Smart Leverage, takes inspiration from traditional leasing models that seek to merge user flexibility with functionality.

By allowing users to access assets without paying the full upfront cost, leasing enhances accessibility while maintaining control over the asset. Smart Leverage utilizes this principle in DeFi, enabling users to amplify their positions through partially collateralized loans, offering enhanced exposure and predictable terms.

How DeFi lease works. Source: Nolus

By adapting this framework to DeFi, Nolus offers the DeFi Lease, a model where users can amplify their crypto exposure by leveraging their initial deposit. The down payment and loan are locked in a smart contract, acting as collateral, while fixed borrower terms provide predictability and stability for users.

Users can take advantage of Smart Leverage to pursue various strategies. For example, by depositing 1,000 USDC, they can borrow an additional 1,000 USDC to acquire double the amount of a cryptocurrency like Cosmos ( ATOM ), with the combined holdings acting as collateral. Alternatively, they can leverage short positions to benefit from price declines while maintaining a fixed loan obligation, making the platform versatile for various market conditions.

Instead of exposing users to the full impact of market downturns, Nolus employs partial liquidations — selling only a portion of collateral to maintain position stability. This reduces financial strain and provides users with opportunities to recover. Mitigating risks and offering a predictable borrowing experience in volatile markets, these mechanisms showcase how the DeFi Lease balances user needs for stability and flexibility.

Growth and token buyback

Nolus’ growing adoption is reflected in its milestones. In a period of two months, Nolus’ total value locked (TVL) has surged fivefold to $5 million, while transaction volumes have increased sixfold, reaching a cumulative total of $90 million.

Nolus’ strategic tokenomics also plays a key role in its ecosystem’s sustainability. A recent buyback of 4 million NLS tokens, the fundamental value unit within the network, has offset blockchain inflation by a factor of two while reducing external incentives. NLS bought back in the past month made up 25% of all historically bought-back and removed from circulation tokens. This buyback strategy aims to strengthen the token value and reinforce long-term protocol growth, signaling Nolus’ commitment to building a sustainable DeFi ecosystem.

🔥 6 months for the first 2 million $NLS to be bought back and taken out of circulation

🔥 Another 9 months to add 1 million more

🔥 Just about 2 months for the latest 1 million!

How long do YOU think it’ll take for the protocol to scoop up the next million? 👀 ⬇️ pic.twitter.com/rHBWOqkdQr

— Nolus 🔅 (@NolusProtocol) December 9, 2024

Through adaptive strategies like partial liquidations and collateral optimization, Nolus demonstrates adaptability in volatile market conditions. For example, during a $2.3 billion marketwide liquidation event, the platform limited losses to just three partial liquidations across one asset class — 0.83% of all active positions — demonstrating its effectiveness in reducing the financial risks for users.

Looking ahead, Nolus envisions a decentralized financial system with value, security and innovation. With consistent growth, resilience during market challenges and user-focused solutions, Nolus demonstrates that it is on the right track.