It’s true: Ithil will launch soon on Arbitrum.
Whether you are a veteran or if this is your first time hearing about Ithil, check out this quick refresher to brush up everything you need to know about the Web3 Wizard!
What is Ithil?
Ithil is a next-generation web3 protocol, a financial interoperability layer that connects the whole web3 space.
In a nutshell, Ithil facilitates access to numerous attractive opportunities in the blockchain ecosystem: new DeFi products, NFTs and even Real World Assets that have been tokenised and/or fractionalised on-chain, with Ithil you can ride the newest trends in web3 and make a profit out of it starting with a small initial capital.
Typically, these different opportunities are set apart in largely self-contained bubbles, Ithil bridges this gap by
(1) acting as a liquidity middleware to make even small sums highly profitable
(2) providing a simple and convenient interface to get access to these opportunities with a single click
Ithil doesn’t just create new investments for web3 users, the modular structure of its smart contracts also allows for the rapid creation of novel financial products with day 1 access to deep liquidity: builders welcome!
What’s more, Ithil’s innovative Internal Lending Engine makes it possible for everyday web3 users to take highly capital efficient undercollateralised loans and make the best out of their bets. In doing so, Ithil levels the playing field for anyone and allows both small fish and whales to achieve the best APY available.
What can you do with Ithil?
- Provide liquidity: Users can deposit any whitelisted token to passively earn yield. The deposited liquidity becomes available for borrowing, thus generating revenue in the same token as the deposited one. This presents an attractive opportunity to passively earn real yield on their tokens without risking exposure to impermanent loss.
- Boost the returns on your investments: Ithil uses an innovative system of internal, undercollateralised loans. The ILE makes it possible to e.g. deposit 100 USDC worth of collateral and deploy up to 1,000 USDC worth of capital — depending on the service. Users can choose from a variety of whitelisted protocols and strategies such as Aave, Balancer, Uniswap, OpenSea and many more.
- Liquidate at-risk positions and earn fees: Ithil welcomes liquidators to help protect capital by liquidating at-risk positions efficiently. They can do this manually, or write their own bots.
- Join the DAO governance: Stakers of Ithil’s governance token can help shape the future of the protocol through voting on whitelisting, services, community incentives, and enjoy an automatic accrue of rewards from management fees.
What makes Ithil unique?
Ithil offers a number of features which makes it pretty unique in the web3 space.
Modularity:
Ithil’s smart contracts are built to easily allow rapid (de)listing of virtually any product or service by passing a governance vote. This ensures an always up-to-date offering of the most attractive opportunities in the web3 ecosystem.
Capital efficiency:
Ithil is able to protect undercollateralised loans thanks to the superior lending model. This allows users to leverage their deposits like never before and generate outsised returns on the total available liquidity.
Earn real yield on virtually any token:
Centralised exchanges generally offer yield on a wide array of tokens, but this usually involves opaque, unsecured TradFi-style loans. In DeFi, single side returns are mostly limited to a limited number of large cap tokens like DAI and WETH and dilutive yields of the protocol’s native tokens. Ithil’s lending vaults make it possible for any token to be whitelisted and lent out, thus earning yield in the same token.
Fee-redistribution:
Via Ithil tokenomics (to be revealed soon), DAO users will be able to get a share of the accrued protocol fees and be part of the wizard fam by voting on what are the new protocols to onboard and how to properly weight their risk.
Next Steps…
On Tuesday, April 4th, it was announced with a mysterious post on Twitter, an upcoming launch on Arbitrum, one of the most accessible, scalable and hyped L2s available in the web3 space.
The testnet phase will start soon: there will be competitions and prizes for the best testers, and special attention will be paid to our Apprentices and Acolytes, part of our Wizardry academy and early Discord users.
In the meantime, there is a special and totally unannounced surprise coming in the following weeks, stay tuned to find out!
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